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(GIST OF YOJANA) Demographic Dividend

[March-2022]

Demographic Dividend

Context:

India is home to a fifth of the world’s youth population advantage. We are in the midst of a demographic dividend. United Nations Population Fund defines this phase as economic
growth that results from a shift in population’s age structure— the phase when the working age population is more than the number of dependents.
Our young population is a valuable asset to economic growth; they will play a critical role in achieving the ambitious target to become a global powerhouse and achieve the target of
USD 5 trillion economy by 2024-25. India does not have a lot of time. We have only 20 years left for reaping the advantage of demographic dividend.

Enabling Entrepreneurial Potential:

The national income of any country increases if the workforce is educated and has employable skills. Access to the internet and social media has created a digitally savvy population.
Youth are digital natives with high literacy rate. Nation has opportunities for job creation with a novel entrepreneurial culture.
Disruptive technologies have developed startup ecosystem that is providing services in areas like healthcare, education, e-commerce, agribusiness and many more. Fuelled by aspirations and quality of life, our youth is at the forefront of new age technologies such as artificial intelligence, machine learning, data science and Industry 4.0.
Our youth is a rising consumer class; companies are making products and services with pricing models targeted towards them. Digital payments, e-wallets, low interest loans and credit facilities further fuel the entrepreneurial aspirations of young population. As their spending power is increasing, the market is set to grow, resulting in higher economic activity. Our young population is also an attractive proposition for investments, locally as well as globally. India has become an investment hub for its entrepreneurial young population.
Many private and public sector interventions are imparting skills to the country’s youth. National Skill Development Mission is a game changer that is empowering youth with employable skill sets across multiple sectors and also improving productivity and efficiency.
The Government of India initiatives such as Startup India, Digital India and Pradhan Mantri MUDRA Yojana (PMMY) have further enabled entrepreneurship and increased employment opportunities. Inclusive growth can only be realised if there is a focus on women empowerment. The Government’s stress on the importance of Nari Shakti is one of the key pillars of inclusive growth. This will also make inroads to grow and strengthen the women-led enterprises.

Budgetary Outlay:

The Budget 2022-23 provides impetus for growth as it lays a blueprint for the Amrit Kaal, which is futuristic and inclusive, and it holds a promising future ahead for education, up-skilling and employment. The Budget has profoundly increased the outlay for the education sector by 11.86%, which signals the intentions towards uplifting and empowering the youth. The budgetary outlay will have positive cascading effect on our youth, women and fanners.
The Gati Shakti is a progressive model for economic growth and sustainable development; this will result in productivity enhancement and investments. This model is driven by seven engines, viz. roads, railways, airports, ports) mass transport, waterways and logistics infrastructure. This will spur economic growth by furthering the efforts of the public and private sector, leading to enormous job and entrepreneurial opportunities for the youth. This is a big push for public investment for infrastructure, readying India for a 100% educated population.

Startups:

The Budget 2022-23 has provided significant stimulus to the startup and digital ecosystem that is driving innovation.
There is an increased thrust on artificial intelligence, geospatial systems, drones, semiconductor ecosystem, genomics, green energy, clean mobility systems and pharmaceuticals. This will be the engine of economic and social growth for the youth-led New India. Apart from creating employment opportunities
for youth, this will also make industry efficient and competitive.
The launch of Digital Ecosystem for Skilling and Livelihood— DESH-Stack e-portal will motivate young population to learn and sharpen their skillsets apart from creating entrepreneurial opportunities. This will enable them to skill, re-skill and upskill through online training.

Youth Entrepreneurship

India has a strong startup ecosystem. As on 7 February 2022, there were 63,103 startups registered by Department for Promotion of Industry and Internal Trade (DPIIT).
Indian youth are the torchbearers for creating world class startups. The unicorns waved in 2021-22 despite Covid-19, showing the strength of our youth. More than 50 unicorns were formed during the pandemic. With proactive policies for startups as announced in the Budget, India has the potential to drive innovation and entrepreneurial temper to create numerous employment opportunities.
The Budget lays down decent initiatives on the tax front, with extension of tax benefits for one more year and promoting Ease of Doing Business. Meeting working capital requirements during initial years of operations is tough for startups. Thus, tax exemption extended by one more year is a strategic move to support young entrepreneurs.

Way forward:

The Budget outcomes will support young entrepreneurs who are brimming with innovative and creative ideas. The surge in the young working population presents unique possibilities for India’s future with respect to socio-economic growth. If given right opportunity’ at right time, our nation will be able to harness the potential of youth.
Undoubtedly, the Government is rolling out best possible policies and schemes for holistic development of the youth, but more can be done in the upcoming years. Innovative and radical systems need to be developed in the field of education and skill development so that the youth grows academically and cognitively to gain competency for running our nation as future leaders.