Understanding Demographic Dividend and Its Significance for India and Bihar

1. What is Demographic Dividend?

• Definition: Demographic dividend refers to the economic benefit a country gains when it has a large working-age population (15-64 years), which leads to increased productivity and economic growth. This demographic shift occurs when the dependency ratio (the number of dependents per working-age person) is low.
• Opportunity for Growth: A youthful population can drive economic development, provided there are adequate investments in education, healthcare, and employment.

2. India’s Demographic Dividend

• According to the UNFPA (United Nations Population Fund), India will continue to have a demographic dividend until around 2041, after which the working-age population will begin to decline.
• Bihar’s Perspective: Bihar, one of India’s youngest states, has a significant opportunity to capitalize on this demographic shift. The working-age population is expected to remain high for several decades, offering potential for economic growth.

3. Steps Taken by Bihar

• Education and Skill Development: The state has focused on improving education and skill training programs to prepare the youth for the job market. Initiatives like Bihar Skill Development Mission aim to provide skills training to youth in various sectors.
• Infrastructure Development: Bihar has invested in infrastructure, including roads, railways, and power supply, to create a conducive environment for industries that can employ the growing workforce.
• Attracting Investments: The Bihar Industrial Investment Promotion Policy promotes investment in sectors like food processing and manufacturing, providing jobs to the youth.
• Healthcare Improvements: Bihar has been improving its healthcare services, focusing on maternal and child health, which directly influences the state’s workforce productivity.