Is India a nation of idling youths?

Where most world economies are grappling with declining birth rates, shrinking labour markets and ageing populations, India stands at the cusp of an unprecedented opportunity — thanks to its demographic advantage. With the world’s largest youth population and a median age of 28.4 years, India is not only strengthening its competitive edge but also setting trends in consumer behaviours and discretionary spending. India will have 1.04 billion people of working age by 2030 — the highest among major economies.

What is considered youth?

According to the National Youth Policy, individuals aged 18 to 29 years are youth. This phase marks the transition from education to employment and livelihood. Many young people struggle to find meaningful work during this period, often continuing their search until the age of 29. Therefore, the age bracket of 15 to 29 is considered critical. As per the 2021 census projections, India has over 371.4 million youth — around 27% of its total population. Imagine a country where nearly half of its population is in its prime working years. This is where innovation meets ambition: a youthful workforce poised to redefine global economic growth.

India is set to remain the world’s largest provider of human capital. As more young people enter the workforce and earn disposable incomes, they will continue to fuel domestic consumption across sectors. A young population can boost India’s economic growth and innovation by offering a larger workforce with the potential for increased productivity and consumer demand.

India’s demographic profile presents several advantages:

A trained workforce boosts economic prosperity. 

Greater potential for economic output, innovation and productivity.

Increased demand for goods and services drives economic activity.

Youth are more open to adopting technology and investing in digital infrastructure.

Their involvement, both in rural and urban areas, is essential for unlocking national productivity.

With the right support, youth can be powerful agents of development.

To harness this potential, young people must receive quality education and skills training that prepares them for productive economic participation. They also need access to job markets capable of absorbing them. This required holistic support — good health, education, skilling opportunities, and platforms to shape their future.

The key economic trigger is when a country has more people available to work than dependent on others. In other words, the working-age population must outnumber the dependent population. Youth engagement is vital for India, as they are the critical thinkers, change-makers, innovators, communicators and leaders.

As of January 1, 2025, India had approximately 217 million registered voters aged 18 to 29, constituting about 21.9% of the total electorate of 991 million. But as per the Election Commission, only a little over 18 million new voters in the 18-19-year-old bracket — out of an eligible 49 million — were added to the electoral rolls. This means only 37% of first-time voters successfully registered.

Meanwhile, about 17 million people are added to the non-farm sector each year, but only 3.5 million jobs are created annually. Youth supply exceeds demand by 400%. The reality of idling among Indian youth is stark. Half of India’s population — approximately 475 million— can work but are currently idle, although not officially unemployed. Effectively, for every one person employed, one is idle.

Every year, over eight million graduates, diploma holders, and ITI pass-outs enter the job market, but fewer than 0.8 million (just 10%) secure employment. Paradoxically, the government aims to increase graduate enrolments in universities, exacerbating the mismatch.  

To address this, India needs a well-designed, comprehensive youth survey — one that captures demographic profile, education and employment status (including NEET - not in education, employment, or training), income, mobility, expenditure, skills, aspirations, digital engagement, influencers, political awareness, and social values; and attitudes and mental health.

Although India has conducted various surveys on youth-related issues, none provide a complete or realistic picture. In contrast, many developed nations carry out detailed youth surveys to design targeted programmes.

If India is to truly realise its demographic dividend — recognising youth as the backbone of its economy—it must strengthen youth-focused policies and implement tailored development and employment programmes. This calls for a robust cross-sectoral youth database that helps identify existing gaps, understand needs, and guide appropriate interventions.

(The writer is a retired officer of the Government of Karnataka)

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.