Demographic Dividend and Youth Unemployment: Evidence from the Indian States

Abstract

India is undergoing demographic transition and it is gaining economically from the changing age structure. Among the age structure, the age between from 15 to 34 is an important human resource for economic development. The youth population in the age-group 15-34 years is increasing from 353 million in 2001 to 430 million in 2011 and then continue to increase to 464 million in 2021 and finally to decline to 458 million in 2026. Youth population comprises 35 per cent of the urban population and 32 per cent of the rural population. According to 2011 Census 84.5 million young people in India live below poverty line, which is the highest rate worldwide, at 44.2 per cent of the total youth population at the same time there are 44 million Indian youth who are undernourished, which constitutes 23 percent of the youth population of India. The work participation rate among young people has declining from 55.5 percent in 1983 to 46.0 per cent in 2004-2005. In this context this paper examines the Demographic dividend and youth unemployment: Evidence from India and the selected Indian states from 1981 to 2011.The study is mainly based on secondary data sources. The study concluded that in order to achieve inclusive growth and removal of poverty, sufficient employment opportunities should be generated for the young Indians and the phase of demographic dividend holds the key for achieving sustained growth.