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Demographic Dividend Explained

• The term "demographic dividend" from the United Nations Population Fund (UNFPA) means the chance for economic growth due to changes in the age structure of a population. This happens when the working-age group (15 to 64 years old) is larger than the non-working-age group (14 and younger, and 65 and older).
• In simpler words, it's when there are more people who can work compared to those who depend on others. This is important for policymakers.

Impact on India

• India is in a 37-year phase of demographic dividend. This could lead to faster economic growth and more productivity. To make the most of this, the government needs to plan its policies well. It should also prepare for higher medical costs as people get older and productivity decreases.
• As more people live apart from their parents, India should also create an affordable social security system. This would help older folks with pensions and taking care of their needs and medical expenses.

Benefits of Demographic Dividend

• When more people are working, the economy gets stronger. This means the government collects more taxes. These taxes help create more demand in the economy. This, in turn, can save money and boost investments in the economy.

Challenges Due to Population Changes

• Some parts of the population have less access to things like education and technology. Different states in India are experiencing demographic changes differently. Some are benefiting from it, while others are not yet. Technology is also changing jobs, and some people might lose work.
• Cities are struggling with the number of people moving in. People are also unhappy with job security, low pay, and jobs that don't match their skills. There are also problems related to regional differences, less participation of women in the workforce, and unequal education.

Moving Forward

• To use the potential of the growing workforce, the country needs to create new jobs. This will help young people find work.
• Better infrastructure, training, easy access to money, and fewer barriers for starting businesses are important steps. Technology should be used in all areas. Schools need to improve, especially in rural places. Care for older people is also crucial.
• There should be more good schools, especially in rural areas, and better transportation to cities. More jobs need to be created, especially in areas like textiles, leather, and jewelry, which have many female workers. Jobs should match skills, and there should be a focus on quality.

Looking at the bigger Picture

• Policy-makers should work on education, skills, and creating formal jobs. Ignoring this might lead to frustration and violence among young people. It's also important to encourage entrepreneurship among the youth.
• Not doing this properly would mean missing out on the demographic dividend. This could lead to more unemployment and poverty, undoing economic progress and causing social problems.