Skilling of people key to realising demographic advantage: CEA

New Delhi: Skilling people in emerging areas is key to India reaping its demographic dividend, according to V Anantha Nageswaran, chief economic advisor (CEA) in the finance ministry.

Speaking to industry leaders at an event in Chennai, Nageswaran said, "We need to ensure that our demographic dividend is indeed a demographic dividend and that requires focus on skilling in areas of green technology, artificial intelligence and also other infrastructure skills that our industry would require," Nageswaran said.

According to the UN, India would overtake China in 2023 to be the most populous nation in the world with 1.428 billion people, 69% of which would be people below the age of 24 years.

Nageswaran also said that the country cannot increase its manufacturing industry's share in gross domestic product (GDP) without having affordable and reliable electricity supply. Many experts have in the past pointed out the high electricity tariff for industry, which cross-subsidises household electricity tariff, which to some extent affects the cost-competitiveness of the domestic industry.

"Therefore, discom reforms in the states need to happen," Nageswaran said.

He also said that increasing women's participation in the economy, which is still a relatively under explored aspect of the Indian society, will be a huge contributor to India's economic growth.

While making a presentation on economic growth trends, Nageswaran said that although there are concerns around El Nino impact on rains, not all El Nino years are drought years.

"This year, of course there are concerns about El Nino. But one thing you should remember, most drought years are El Nino years. But not all El Nino years become drought years. It is important to keep the distinction in mind," said Nageswaran.

In response to a question from an industry representative, a senior official handling tax policy explained that the country was moving towards a common tax return, away from individual tax return forms for different income groups and classes of tax payers.

"What we are moving (towards) now, you must have noticed, is a common tax return that has been put in in the public domain for consultation," explained Kamlesh Varshney, senior official from Central Board of Direct Taxes (CBDT). In the common form, only relevant schedules will pop up before the tax payer. This is expected to be available probably from next year, said Varshney.