The Economic Survey highlights problems in encashing India's most important asset: its demographic dividend
Policymakers are usually focused on short-run economic management issues. But, the short run has to be a bridge to the long run." The most important chapter in this year’s Economic Survey—the chapter on India’s demographic advantage, chapter 2—begins with these wise words. The natural question that arises then is: what is that long-run issue that should keep policymakers awake at night and busy in the day? Realizing India’s demographic dividend and ensuring that it does not wither away into a demographic liability surely has to rank as the most important long-run policy concern. Nearly half the additions to the Indian labour force over the period 2011-30 will be in the age group of 30-49, even while the share of this group in China, South Korea, and the US will be decreasing.