UPSC Prelims 2013 Q78: Indian Economy – Human Development, Poverty & Employment Schemes
To obtain full benefits of demographic dividend, what should India do?
- (a) Promoting skill development
- (b) Introducing more social - security schemes
- (c) Reducing infant mortality rate
- (d) Privatization of higher education
Answer: (a) Promoting skill development
Explanation
Reaping the demographic dividend
The demographic dividend is the growth boost a country can get when most of its people are of working age (15 to 64 years).
The boost comes only if those people are skilled, healthy and employed.
| Option | Verdict | Reason |
|---|---|---|
| (a) Promoting skill development | Correct | Turns a large workforce into a productive one |
| (b) Introducing more social-security schemes | Incorrect | Supports dependants; does not raise productivity |
| (c) Reducing infant mortality rate | Incorrect | Good for health, but not the key to using today's workforce |
| (d) Privatization of higher education | Incorrect | Does not by itself give skills or jobs |
India's position:
| Feature | Detail |
|---|---|
| Median age | Under 30 years |
| Window | Working-age share stays high until about 2055 |
| Policy | Skill India, National Skill Development Mission, PMKVY |
Without jobs and skills, the dividend can become a demographic disaster.
Answer: (a) Promoting skill development.
Why each option is right or wrong
- (a) CORRECT. Skill development makes the young workforce productive.
- (b) Incorrect. More social-security schemes do not turn workers into earners.
- (c) Incorrect. Reducing infant mortality is a health goal, not the key here.
- (d) Incorrect. Privatization of higher education does not ensure employable skills.
Key point
Demographic dividend: large working-age population; realised only through skills, health and jobs; India's window lasts until about 2055.
Remember
Demographic dividend needs skills and jobs.
Common mistakes
- Thinking the dividend comes automatically with a young population.
- Choosing a welfare measure over a productivity measure.
- Forgetting that the window is temporary.
Exam tip
Dividend = workers who can work. Skills are the missing link.
Sources
- Ministry of Skill Development and Entrepreneurship — National Policy for Skill Development and Entrepreneurship, 2015
- Ministry of Finance — Economic Survey 2018-19 (India's Demography at 2040)