NITI Aayog Chief Envisions India's Demographic Advantage
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Synopsis
NITI Aayog CEO B. V. R. Subrahmanyam envisions India as a global leader in education and a key supplier of working-age individuals, capitalizing on demographic shifts in developed nations. He highlights India's youthful population and economic potential, with projections showing significant workforce contributions in the coming years.
Key Takeaways
- India's demographic dividend offers a competitive edge.
- India can become a global education center.
- Major countries are hiring Indian professionals.
- Projected economic growth could place India as the third-largest economy.
- India's dependency ratio is set to improve significantly.
New Delhi, April 18 (NationPress) NITI Aayog CEO B. V. R. Subrahmanyam envisions India as a future global leader in education and a reliable source of working-age individuals, especially as populations begin to decline in developed nations.
Speaking at an event, Subrahmanyam emphasized that this marks the first instance where a significant global population decrease is being recorded.
The NITI Aayog CEO pointed out that Japan is currently recruiting 15,000 Indian nurses, while Germany is looking to hire 20,000 healthcare professionals due to a lack of local workforce and deteriorating family systems.
He asserted that India can transform into a global education hub, with its foremost advantage being its democratic system.
Indian firms, including legal and accounting practices, should aim to emerge as leaders on the world stage, he added.
"India will serve as a consistent supplier of working-age individuals globally, which will be our greatest asset," Subrahmanyam stated.
The NITI Aayog CEO noted that the challenges faced by middle-income nations differ significantly from those encountered by low-income countries.
He also highlighted that while India is currently the fifth-largest economy, it is set to overtake Germany and Japan in three years, becoming the third-largest economy. By 2047, India may achieve the status of the second-largest economy at $30 trillion.
Subrahmanyam sees immense promise in India's demographic dividend, with a relatively youthful population boasting a median age of 28.4 years.
Approximately 26% of the population is under 14 years old, while 67% are between the ages of 15 and 64, and only 7% are over the age of 65. In comparison, the elderly population in the US is 17%, and over 21% in Europe, based on official statistics.
An EY report indicates that India will have 1.04 billion working-age individuals by 2030.
India's dependency ratio is projected to be the lowest in its history by 2030 at 31.2%. The young dependency ratio—the proportion of children under 15 years compared to the total population—is expected to surpass the old dependency ratio (the ratio of individuals over 65 years relative to the total population).
About 24.3% of the incremental global workforce over the next decade will originate from India. This is particularly noteworthy given the rapidly aging demographics in the developed world, which poses challenges to labor supply across various sectors, according to the report.
