India is experiencing a unique moment in its demographic history – a youth bulge that has the power to define its economic and social trajectory for decades to come. With over 371 million people aged 15-29, accounting for 27% of the total population, and a median age of 28.8 years, India is one of the youngest countries in the world.
This phenomenon, known as the demographic dividend, has the power to either propel India to economic glory or drag it into socio-economic stagnation, depending on how effectively it is harnessed. It refers to a period when the working-age population is significantly larger than the dependent population — creating a window where the country can achieve faster economic growth, higher productivity, and improved living standards.
India’s youth population alone exceeds the total population of many countries. Compared to aging powers like Japan (median age 48.4) and China (39.5), India’s youth offer a demographic advantage that few nations enjoy today. But this advantage is time-sensitive and how we respond today will decide what kind of nation we become tomorrow.
According to the International Labour Organization, the global youth unemployment rate in 2024 stood at 13.3%. In contrast, India’s average for 2023–24 was 10.2%, showing a steady decline from 12.9% in 2020–21. These figures suggest that India is performing better than the global average — but a closer look reveals a different story.
The Periodic Labour Force Survey (PLFS) monthly data from May 2025 indicated a worrying spike in youth unemployment, rising to 15%, with unemployment at 17.9% among urban youth and 13.7% among rural youth. This sudden increase highlights the instability of youth employment in the face of economic shifts, market disruptions, and inconsistent policy implementation. Even more alarming is that among graduates, the unemployment rate is a staggering 29.1%, while it is just 3.4% among the illiterate. This paradox underscores the core issue of education without employability.
India’s problem isn’t the lack of degrees — it’s the lack of skills. The overemphasis of formal education over vocational training has led to a generation of youth with credentials but little work readiness.
Other contributing factors include:
High competition in the job market due to a large population entering the workforce each year
Urban – rural disparities in access and opportunity
Digital illiteracy – Only one in four rural youth is digitally literate
Mental health concerns – Over 30% of the youth report anxiety, depression or emotional burnout
Recognizing these challenges, several programs have been launched to equip youth with relevant skills and opportunities :
PMKVY (Pradhan Mantri Kaushal Vikas Yojana) : Over 10 million youths trained in vocational skills
DDU-GKY : A rural skilling initiative aimed at enhancing the employability of rural youth
Startup India : Supported more than 80,000 startups since 2016, many of which are youth-led
Mudra Yojana : Offers micro loans for young entrepreneurs to start small businesses
These initiatives are significant, but their implementation and accessibility remain uneven, often leaving behind the very youth they were designed to help. Without better outreach, monitoring, and tailoring to local needs, these efforts may fall short of their full potential.
India’s youth are not just job-seekers — they are potential job creators, innovators, and problem solvers. With over 70,000 startups already recognized, many led by young minds, India is slowly moving toward becoming a startup-driven economy.
Moreover, nearly 70% of India’s youth live in rural areas — offering a massive untapped resource for agro-tech, renewable energy, and social enterprises. With the right access to technology, and mentorship, rural youth can become active agents of development, rather than being pushed to migrate to cities for survival.
India’s demographic dividend phase, where the working-age population exceeds the dependent population, is expected to last until 2040. Countries like China, South Korea, and Ireland capitalized on their demographic windows and achieved rapid economic transformation. India must do the same, or risk squandering its most powerful advantage
If this period is well utilized, the nation could witness:
Reduction in poverty and income inequality across regions
Rise in per capita income, improving quality of life
Higher economic productivity due to skilled and youthful workforce
Increased global competitiveness, allowing India to become a manufacturing and service hub
But if wasted, the consequences could be severe:
High unemployment and underemployment, especially among educated youths
Growing regional disparities, as youth in rural and backward areas fall further behind
Stagnant economic growth due to unproductive or idle youth workforce
Loss of global standing, as the failure to harness youth potential weakens India’s influence in global economic and strategic affairs.
India’s youth bulge is not a guarantee of growth, but a powerful possibility. It demands strategic investment in skills, infrastructure, mental health, and inclusive economic models. Without this, the same youth that could power India’s rise might become its greatest vulnerability.
Whether this generation becomes India’s defining strength or its greatest regret hinges on the choices made today. The demographic advantage will not last forever, and time is already slipping. Unless we address the mismatch between education and employment, bridge the skill gap between regions, and ensure that opportunities are not limited to a few, this potential may pass without delivering the growth we expect.
Chingang Yanna,
Nonya Konyak
B.A. 5th Semester
Department of
Economics
St. John College, Dimapur
Saturday, July 12, 2025