Young people of India under the spotlight
In the pursuit of becoming a developed economy by 2047, India's youth, numbering 420 million between the ages of 15 and 29, are making significant strides, particularly in education, employment, income generation, and digital adoption. These advancements have been highlighted in recent analyses leading up to 2024-25.
Education
India boasts the world's largest youth population (5-24 years) with 580 million individuals, offering vast opportunities in education. The Indian government has allocated Rs. 73,498 crores (approx. US$8.82 billion) for the 2024-25 fiscal year towards education, aiming to nurture this demographic. The K-12 education sector alone is valued at $48.9 billion (2023) and growing at 10.7%, projected to reach $125.8 billion by 2032. Higher education institutions like IITs and IISc have also improved global rankings, producing skilled professionals to drive growth.
Work and Income
Youth employment remains a critical area, with structural challenges contributing to unemployment rates around 20-21%. Women face even higher challenges, especially in urban areas where female youth unemployment is about 30.3%. However, micro, small, and medium enterprises (MSMEs), which generate 62% of India’s employment and contribute 35% to its GDP, serve as major employment engines for young workers. Government reforms are focusing on boosting MSME growth and strengthening entrepreneurship to absorb youth labor and increase their incomes.
Digital Adoption
While specific details about digital adoption are not explicitly provided, the scaling up of education and MSMEs, combined with India’s rapid growth in services (54.7% of GDP) and manufacturing sectors, suggests strong digital penetration among the youth. India's emphasis on technology-driven innovation in education and business aligns with the government’s Viksit Bharat vision to make India a high-income developed economy by 2047.
Context and Economic Growth
India aims for 8% growth over the next one to two decades to reach the developed nation milestone by 2047. The economy is projected to grow at 6.4% in FY25, supported by agriculture, services, and expanding MSMEs. The emphasis on developing rural areas, entrepreneurship, indigenous industries, and increasing private sector investment all signal youth involvement across multiple sectors.
In conclusion, India’s youth are instrumental in advancing education access and quality, driving employment within MSMEs, overcoming gender-based unemployment challenges, and embracing digital tools—all critical for the nation’s economic transformation by 2047 as per the current strategic outlook for 2024-25. However, it's important to note that there are also economic divides in the progress made by India's youth, and as of now, there is no information available about any policies or initiatives aimed at addressing these divides.
- Recognizing the potential of India's vast youth population in the digital era, subscriptions to educational and self-development platforms are on the rise, serving as key resources for this demographic's lifelong learning journey.
- Given the focus on the growth of India's banking and finance sectors, stocks and investment opportunities are attracting the attention of young investors, further incorporated into the lifestyle of the nation's youth.
- In the midst of India's pursuit of becoming a developed economy, the government's education policy has allocated significant resources toward nurturing the youth, providing them with the necessary skills and knowledge to make significant contributions to various businesses and industries.
- The Indian government's focus on fostering entrepreneurship among the youth has encouraged more youth-led start-ups in sectors like technology, e-commerce, and green industries, demonstrating a shift from traditional careers in fields like medicine, engineering, and teaching.
- As the Indian economy strives for growth, the need for well-educated, adaptable, and innovative individuals equipped with the skills to navigate the modern business landscape is more significant than ever.
- In addition to education and employment, the Indian government is actively promoting digital literacy initiatives among the youth, believing that technology will be a key determining factor in the nation's competitive standing in the global economy by 2047.
