In an interesting analysis, the World Bank pointed out that the Indian government is not utilizing the demographic dividend (as desired) since its job creating abilities are lower in contrast to the growing in the working-age populations. While its South Asia regional update projected a strong 6.0 to 6.1 per cent growth for the region, it said in a release.
As per the observation, the employment growth ‘well below’ the average growth for the 2000-23, consequently its employment rate declined more than any other country in the region except Nepal till 2022, but the preliminary data suggested in 2023 it got rebound by 3 percentage points.
However the lender pointed out that the Indian economy is expected to post “robust growth” of 7.5 percent in the financial year 2023-24, and along with the recoveries in Sri Lanka and Pakistan would strengthen the South Asian region.
The World Bank opined that the South Asia has missed opportunity in fully capitalize on its demographic dividend, which is mostly concentrated in non-agriculture sectors and feared that the scenario may affect the businesses in the region.
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