Annual Growth To Harness Demographic Dividend: RBI’s Report
According to the recent report, the Indian economy must grow at a rate of 8-10% per annum over the next decade to reap the benefits of its demographic dividend.
- The RBI emphasizes that India’s developmental strategy for the coming decades should focus on maximizing the contribution of its young and growing labor force to the growth of gross value added (GVA).
- Demographic Dividend in India:
- Working-age population expanding rapidly
- 7 million per year (2021-2031)
- 2 million per year (2031-2041)
- Opportunity for accelerated economic growth
- Requires focus on labor quality, employability, and formalization
- India’s demographic dividend started accruing from 2018 and is expected to last until 2055.
- The working-age population in India is projected to expand at a rate of about 9.7 million per year during 2021-2031 and 4.2 million per annum during 2031-2041.
