DMPQ: what do you understand by the term demographic dividend? This dividend is fast becoming liability. Discuss?

Demographic dividend means that as compared to other large developing and developed countries, India Has a higher proportion of working age population as compared to entire population. More than 50% of India’s population is in the age group of 15-59 years. With such a young population. It has a huge demographic dividend waiting to be capitalised. But unfortunately we haven’t been able to harness this capital.

According to a mckinsey study, 51% of this working age population i.e. mpre than 350 million people require some form of vocational/skill based training in order to make them more employable.


  • Lack of training institutes and vocational training centres.
  • Graduates passing from the colleges are not skilled enough to do a job. They are not able to match up the expectations of the industry.
  • Industrial revolution 4.O, Artificial intelligence and robotics – their negative effect is low creation of human job.
  • Currently most of the country is on the path of protectionism. Because of this they are averse to outsourcing and migrants. For example H1B issue,nitaqat law
  • Poor performance of Manufacturing sector.



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