What India can give to the world

What India can give to the world

2121stst century: Asia’s century: Asia’s CenturyCentury

Power shift from Atlantic to Power shift from Atlantic to AsiaAsia

Emerging New World OrderEmerging New World Order

India on strategic Radar of India on strategic Radar of Developed and Developing Developed and Developing worldworld

India’s AdvantageIndia’s Advantage

DemographicDemographic Societal Building BlockSocietal Building Block English languageEnglish language Affinity to mathsAffinity to maths Credible IT imageCredible IT image Steady Growth TrajectorySteady Growth Trajectory Strong will, enthusiasm and spiritualityStrong will, enthusiasm and spirituality that that

gives honesty & commitment to the gives honesty & commitment to the workforce.workforce.

Workforce shortage in Workforce shortage in developed countries by 2020 developed countries by 2020

Maximum projected shortageMaximum projected shortage

United States– 6.1mnUnited States– 6.1mn Canada – 1.7 mnCanada – 1.7 mn Spain – 2 mnSpain – 2 mn Japan – 2.8 mnJapan – 2.8 mn Over 50% shortage predicted in English Over 50% shortage predicted in English

speaking countries.speaking countries.

Median age by 2025Median age by 2025

USA – 39.3 yearsUSA – 39.3 years Canada – 42.9 yearsCanada – 42.9 years Mexico – 32.5 yearsMexico – 32.5 years Europe – 45.4 yrsEurope – 45.4 yrs France – 43.3 yrsFrance – 43.3 yrs Italy – 50.7 yrsItaly – 50.7 yrs UK 44.5 yrsUK 44.5 yrs Russia – 43.8 yrsRussia – 43.8 yrs Japan – 50 yrsJapan – 50 yrs China -- 39 yrsChina -- 39 yrs India -- 31.3 yrs India -- 31.3 yrs

India – youngest country of the India – youngest country of the worldworld

Average age today 23 years while Average age today 23 years while that of Japan 41 years.that of Japan 41 years.

Demographic Dividend:Demographic Dividend:

YOUTHFULNESSYOUTHFULNESS

FutureFuture

In 2025, out of every 100 workers in In 2025, out of every 100 workers in India 12.1 will be above 65 yrs as India 12.1 will be above 65 yrs as compared to 49 in Japan.compared to 49 in Japan.

In next 10 years, India will create 47 In next 10 years, India will create 47 million workforce to lead the world. million workforce to lead the world. 100 million at present are in schools.100 million at present are in schools.

Reality checkReality check

1080 mn population with a 482 mn 1080 mn population with a 482 mn workforce. Unemployment at 9.2%workforce. Unemployment at 9.2%

By 2020 – 63 mn unemployed, more By 2020 – 63 mn unemployed, more than entire population of UK, France & than entire population of UK, France & Italy! Italy!

90% of workforce in the unorganized 90% of workforce in the unorganized sector.sector.

Low skill levels among women causing Low skill levels among women causing rise in unemployment rate for women.rise in unemployment rate for women.

India’s labour MarketIndia’s labour Market

Labour force participation is low 560 Labour force participation is low 560 million of a 1 billion populationmillion of a 1 billion population

Organized employment has been stagnant Organized employment has been stagnant at 40 million since last 30 years!at 40 million since last 30 years!

Unorganized employment is the bulk of Unorganized employment is the bulk of labour force (350 million)labour force (350 million)

Given the employment elasticity of 0.15 Given the employment elasticity of 0.15 and ICOR(3.75), the 8 million new jobs and ICOR(3.75), the 8 million new jobs needed to freeze unemployment, requires needed to freeze unemployment, requires GDP growth of 13% and investment of $ GDP growth of 13% and investment of $ 130 billion.130 billion.

ProblemsProblems

Low overall productivity due to lack of Low overall productivity due to lack of supportive nationwide infrastructuresupportive nationwide infrastructure

Large number of people become apprentices in Large number of people become apprentices in the unorganized sector to pick up saleable the unorganized sector to pick up saleable skills.skills.

Skills generated in the unorganised sector have Skills generated in the unorganised sector have no formal recognition! (people with manual no formal recognition! (people with manual work in India has higher happiness index)work in India has higher happiness index)

Labour market opportunities for even the most Labour market opportunities for even the most skilled labour are restricted to local marketskilled labour are restricted to local market

An ideaAn idea

Alternatively viewed, this means that India Alternatively viewed, this means that India has the unique opportunity to:has the unique opportunity to:

Complement what an ageing world needs Complement what an ageing world needs the most- the most- productive workersproductive workers

Provide investment opportunities for ageing Provide investment opportunities for ageing countries for sustained return on countries for sustained return on investment investment (liberal economic policies, stable (liberal economic policies, stable political environment, cheap productive political environment, cheap productive sources and vast market at present)sources and vast market at present)

VisionVision

J.F Kennedy said, “We must reach J.F Kennedy said, “We must reach the moon” and we reachedthe moon” and we reached

Mahatma Gandhi said, Mahatma Gandhi said, “Independence without violence”. “Independence without violence”. We achieved it.We achieved it.

VISIONVISION

Today’s slogan:Today’s slogan:

“ “IndiaIndia -- The Skills Capital of the The Skills Capital of the World”World”

New world new priorityNew world new priority

There was a time to die for the nation , There was a time to die for the nation , now it is the time to live for the now it is the time to live for the nation.nation.

Momentum Momentum

India has the potential to become the skill India has the potential to become the skill capital of the worldcapital of the world (It provided “0” to the (It provided “0” to the world leading to today's global technology world leading to today's global technology but missed the mid course correction!)but missed the mid course correction!)

Labour force is skilling fast with vast and Labour force is skilling fast with vast and rapid increase of education opportunities.rapid increase of education opportunities.

Many things need to be done for India’s Many things need to be done for India’s rapid transition out of poverty and under-rapid transition out of poverty and under-development specially in rural India.development specially in rural India.

PropositionsPropositions

In addition to white and blue collar skills, In addition to white and blue collar skills, India needs to recognize:India needs to recognize:

Its vast pool of knowledge workersIts vast pool of knowledge workers

skilled workers at the grass root level in skilled workers at the grass root level in unorganized sector.unorganized sector.

Government needs to provide recognition to Government needs to provide recognition to the workforce in unorganized sector to the workforce in unorganized sector to make them employable by the MNCs make them employable by the MNCs entering India.entering India.

India needs thought shiftIndia needs thought shift

From employment to employabilityFrom employment to employability (By rapidly (By rapidly making the provision of ‘industry oriented practical making the provision of ‘industry oriented practical skill education’ rather than current focus on skill education’ rather than current focus on traditional academic degrees)traditional academic degrees)

Giving school education system a global airGiving school education system a global air..

Urgent need for genuine focus and clear strategies Urgent need for genuine focus and clear strategies for providing for providing infrastructure in rural and semi-urban infrastructure in rural and semi-urban areas through private public participation areas through private public participation