2014 · GS Paper 3 · Q2 · 12 marks

"While we flaunt India's demographic dividend, we ignore the dropping rates of employability." What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain.

In short

While celebrating a young population, India misses the learning deficits, stunting, low female work and closing window that make its youth less employable. The jobs must come from labour-intensive manufacturing, MSMEs, construction and the gig, care and green economy, with gig workers projected at 2.35 crore by 2029-30.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
India's dividend peaks around 2030, when nearly 65% of people will be aged 15-59 (UN World Population Prospects). Without employable workers and jobs, it can become a demographic burden.
What We Miss While Flaunting the Dividend
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Learning deficits

ASER 2023 found about a quarter of rural youth aged 14-18 unable to read a Class 2 text fluently, and Aspiring Minds (2016) rated about 80% of engineers unemployable.

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Health and women

NFHS-5 (2019-21) recorded 35.5% child stunting, which dents adult productivity, and female participation, though up to 41.7% in 2023-24 (PLFS), is largely unpaid family work.

•

A closing window

Kerala and Tamil Nadu are already ageing, and a falling employment-to-working-age ratio has already eaten into the growth the dividend added (Azim Premji University, 1994-2023).

Where India's Jobs Will Come From
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Labour-intensive manufacturing

Apparel, footwear and electronics assembly, scaled by PLI and PM MITRA parks, can absorb millions of semi-skilled workers from farms.

•

MSMEs and agro-processing

MSMEs employ about 11 crore people, and PMFME food processing can move surplus farm labour into local enterprise.

•

Construction and new economy

PM Gati Shakti capex and PMAY housing hire low-skilled workers, while NITI Aayog (2022) projects 2.35 crore gig workers by 2029-30, with care and green jobs adding more.

Conclusion
The dividend becomes real only when schooling, health and skills make youth employable and labour-intensive sectors hire them. Aligning NEP 2020 and Skill India with these sectors can drive Viksit Bharat 2047.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: The Demographic Dividend. The Demographic Dividend. Diagram (iceberg): The Demographic Dividend; Median age near 28; Large workforce; Learning poverty; Stunting; Missing women; Skill mismatch
Diagram: The Demographic Dividend

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Question from the official UPSC Civil Services (Main) Examination 2014 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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