INDIAN HUMAN CAPITAL

8/8/2019 INDIAN HUMAN CAPITAL

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PREPARED BY

PRAJOT MORAJKAR

MELISSA VAZ

VIRAJ SAWANT

ROGER FERRAO

KIRTI PEDNEKAR

INDIAS HUMANCAPITALINDIAS POPULATION BOON ORBANE?

COMMUNICATION PROJECT

ADARSH INSTITUTE OFMANAGEMENT[27TH SEPTEMBER 2010]

The theory that excess population is bad for the economy is dismissed

by its critics on the grounds that every mouth to be fed comes with two

hands that can be put to work


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INDIAS HUMAN CAPITAL

INTRODUCTION

An unparalleled resource of an educated, hard-working, skilled and ambitious workforce is the

hallmark of Indias human capital.

This workforce is also one of the worlds youngest adds to Indias attractiveness as an investment

destination. Of the Brazil, Russia, India and China countries, India is projected to stay the

youngest with its working-age population estimated to rise to 70% of the total demographic by

2030 - the largest in the world. India will see 70 million new entrants to its workforce over the

next 5 years. There has been rapid increase in Indian population in the last 60 years. Populationof India at the time of Independence was only 350 million. So Indian Population has increased

more than three times.

English is the language of business in India and the large English-speaking workforce is a benefit

to investors and employers. In fact, the number of Indians who know English is more than the

population of the USA. Indias diverse cultural heritage puts its citizens at ease with people from

other cultures and vice versa. With over 380 universities, 11,200 colleges and 1,500 research

institutions, India has the second largest pool of scientists and engineers in the world. Over 2.5

million graduates are added to the workforce every year, including 300,000 engineers and

150,000 IT professionals.

The demographics of India are remarkably diverse. India is the second most populous country

in the world, with over 1.15 billion people, more than a sixth of the world's population. Already

containing 17.31% of the world's population, India is projected to be the world's most populous

country by 2025, surpassing China, its population exceeding 1.53 billion people by

2050. However, India has an astonishing demographic dividend where more than 50% of its

population is below the age of 25 and more than 65% hovers below the age of 35. It is expected
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/List_of_countries_by_populationhttp://en.wikipedia.org/wiki/List_of_countries_by_past_and_future_population#Country_and_territory_breakdown_by_future_population.2C_from_2020_to_2050http://en.wikipedia.org/wiki/List_of_countries_by_past_and_future_population#Country_and_territory_breakdown_by_future_population.2C_from_2020_to_2050http://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/List_of_countries_by_populationhttp://en.wikipedia.org/wiki/List_of_countries_by_past_and_future_population#Country_and_territory_breakdown_by_future_population.2C_from_2020_to_2050http://en.wikipedia.org/wiki/List_of_countries_by_past_and_future_population#Country_and_territory_breakdown_by_future_population.2C_from_2020_to_2050http://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/India


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that, in 2020, the average age of an Indian will be 29 years, compared to 37 for China and 48 for

Japan and, by 2030 India's dependency ratio should be just over 0.4.

Demographics of India

Population 1.15 billion (2010 )

Growth rate 1.41% (2010)

Birth rate 22.22 birth/1000 population (2009 )

Death rate 6.4 death/1000 population (2009 )

Life expectancy 69.89 years (2009 )

Male 67.46 years (2009 )

Female 72.61 years (2009 )

Fertility rate 2.72 children born/women (2009)

Population Projections (in millions)

Yea

rUnder 15 1564 65+ Total

2000 361 604 45 1010

2005 368 673 51 1093

2010 370 747 58 1175

2015 372 819 65 1256

2020 373 882 76 1331

INDIAS POPULATION - AN ASSET


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Indias large population creates demand for goods and is the basis of economic growth. Some of

us belong to the 250 million so-called middle-classes. They also have buying power. What it

means is that (these) people need something. They can buy from you. You concentrate on the

local market

There are two sides to the issue of population, according to Mr Kalam. On the one hand, higher

population contradicts the "strides made in different fields''. On the other, higher populationcreates a large market, which is an asset if people are educated. India produces 2.5 million IT,

engineering and life sciences graduates a year, besides about 650,000 post graduates in science

and IT related subjects. The IT sector alone employs about 850,000 graduates and professionals

while the pharmaceutical and biotechnology sectors are snapping up others. The government

says 402 million Indians are aged between 15 and 59 - the working age - and that this number

will grow to 820 million by 2020.

YOUNG POPULATION

Around 2010-2030, India will add 241 Million people in working-age population (and that

means the children who are currently in our education system. So even with all the drawbacks

that India has, this particular Indian aspect is going to prove pivotal in making India the world

leader in coming years.

One of the strengths of our economy, which also came to light during the past year, is the

presence of a half billion strong literate workforce, complimenting the fact that a vast majority of

this countrys population is young. What this means is, that such a huge population is

continuously trying to work for a living and in trying to improve their lot, they are not only

pushing up the per capita income of the country but also continuously thinking of innovative

ideas thereby creating new business opportunities regularly.

EFFECTS OF HUMAN CAPITAL ON ECONOMIC GROWTH


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For long India has been wary of its rising population. The population has always been seen as a

burden on the already limited resources of the country. Economists always believed that such a

huge population can only be bad for the well being of the economy. Surprisingly the tables seem

to have turned.

Indias economy, no doubt, is achieving positive balance of results from their population growth.

Although one cannot say that Indias population has a 100% positive effect on economic growth,but one may say that India is certainly profiting from an enormous population. It seems that the

large population that India was so embarrassed about has been the largest factor in the economic

development of the country. The large population means that the country has more consumers

and a larger workforce all of which contributes to the countrys ever growing GDP.

India has advanced as a result of population growth. According to Indias Gross Domestic

Product has increased at a steady rate and is ranked the top among developing countries for their

high rates of GDP and their steady increase of output and wealth. Yet, looking at Indias GDP

versus its population, in no way explains why population growth has a positive effect on Indias

striving economy.

A variety of factors play into the models that depict Indias growing economy. Due to the

rising population a large labor force is thus created. Yet the labor force never arrived from thin

air. Through Indian fiscal policies, India was able to spend money on education to instruct the

youth and adults, in order to help them play a productive role in Indias economy. Due to the rise

in the education among citizens, India was able to generate a high employment field. The high

rates of employment meant that Indias economic sectors, mainly agriculture and industry, began

increasing their productivity. Increase in productivity thus meant an increase in the output of

goods and services. This meant that the nation could now meet demands of the rising population

without having to raise prices, making necessities affordable to the poor. The Indian

Government acknowledged the high population growth of their nation, initiated fiscal policy on

education and thus expanded their frontier through a rise in productivity. The increased output

that the Indian Economy achieved created a rise in micro and macro profits which would in turn

lead to a rise in GDP. Through everything, India seemed to defy many economists theories that

rising population growth, in essence, is detrimental to a nation.

Through the theory that population growth has a positive effect on economic growth, India will

prosper in the long run .In the end, India, has become one of the worlds fastest growing

economies, primarily due to the rise in population growth creating a positive effect on its longrun economic growth. India is now ranked one of the top producers in agriculture and is a top

nation in terms of GDP in a developing country. In many cases, economists are correct in saying

that population growth has a positive effect on economic growth of a nation. In reality,

economists might say, "If it werent for its high populations India would still be a suffering

developing nation. It is only due to our large population that we have more workers to work in

both the industries and the goods and services sectors. Of course, the demand and pressure on


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resources remains high but then even the returns are high. When the balance between the two is

seen, it tips in the favor of growth. This indeed is good news for India, as what we felt was a

asset is in fact strength.

DEMOGRAPHIC DIVIDEND

Demographics are destiny. Countries with a large and expanding workforce and relatively few

people of dependent age (under 15 or over 64) can reap what Harvard School of Public Health

demographer David Bloom has called a demographic dividend. Young, creative workers incite

entrepreneurship and innovation, enabling significant gains in productivity, savings, and capital

inflows. As fresh ideas flourish, governments can focus on improving infrastructure and helping

to fund such critical technologies as intelligent transportation systems, smart utility grids, and

renewable energy. The World Health Organization (WHO) estimates that the demographic

dividend can increase a countrys GDP growth by as much as a third.

Indias demographic dividend

Indias human capital is fast emerging as the key source of its economic growth; however, the

countrys outlook on its population was not always so rosy. In the seventies, following

international pressure and models that forecasted huge and economically damaging population

growth, an attempt was made to control this growth through the Nasbandi program initiated by

Indira Gandhis son, Sanjay. However, the electoral defeat handed to Indiras government in

1977 discouraged any further attempts to control population through compulsion in India. This

led to a demographic dividend, giving rise to a large bubble of working age people. The

consequent increase in the number of young workers is leading to higher savings, higher

investment and consequently a higher growth rate.

The theory that excess population is bad for the economy is dismissed by its critics on the

grounds that every mouth to be fed comes with two hands that can be put to work


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Those critical of the "excess is bad" point of view dismissed it on the grounds that every mouthto be fed comes with two hands that can be put to work. Economists with the latter perception

have seen the problem of development as being one of employing more workers in more

productive activities that can yield larger surpluses without depriving them of the basket of

goods they currently consume. If the larger surpluses thus garnered are invested, growth wouldaccelerate. The economic problem in poor countries was that of identifying and implementing a

strategy that can make this happen.

More recently, however, a view has gained ground that what matters is not the size of the

population, but its age structure. A population "bulge" in the working age groups, however large

the total population, is an expected advantage. Thus, India, which is beginning to be

characterized by such a bulge is seen as advantaged, despite its large population. This has

provided one more argument to those who see it emerging as a regional (or even global) power

in the not too distant future, even displacing China as potential world leader.

The demographic dividend in India is expected, to resolve automatically the problem of

garnering the surplus over consumption needed for investment. A nation's population can be

divided into those in the labour force (say, the 15-64 age group) and those outside it. Given the

availability of work and the resulting employment, the division broadens to include those outside

the labour force, those available for work but unemployed and those in the actual workforce.

Since those outside the workforce would be consuming part of what is produced by currently

employed workers, the ratio of those outside the workforce to those in it (the dependency ratio)

would be among the factors influencing the surplus available for investment after current

consumption. Hence, everything else remaining the same, the higher the share of workers to non-

workers, the larger would be the surplus. And for given unemployment rates, the higher the ratio

of those in the labour force to those outside it, the larger would be the surplus.

This demographic advantage or dividend to be derived from the age structure of the population is

traced to the fact that India is (and will remain for some time) one of the youngest countries in

the world. A third of India's population was below 15 years of age in 2009. In 2020, the average

Indian will be only 29 years old, compared with 37 in China and the United States, 45 in Western

Europe, and 48 in Japan. The demographic process this implies would create a large and growing

labour force, which is expected to deliver unexpected spin-offs in terms of growth and

prosperity. Moreover, 70 percent of Indians will be of working age in 2025, up from 61 percent

now. Also by 2025, the proportion of children younger than 15 will fall to 23 percent of Indias

total population, from 34 percent today, while the share of people older than 65 will remain

around just 5 percent. Chinas demographics are not as rosy as Indias, because the governmentspolicies to limit population growth will have created an abnormally large cohort of people over

age 60 by 2040.

India is indeed in the midst of a process where it faces the window of opportunity created by the

demographic dividend. During the first two decades of post-Independence development, while

infant mortality rates fell significantly, the fertility rate remained more or less stagnant. This


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would have increased the population of young people significantly, merely because of greater

child survival. In the three decades since then, though the fertility rate has been declining, the

infant mortality rate has fallen quite sharply, with possibly the same effect.

The effect of these trends on the dependency ratio defined merely in terms of age groups is quite

visible. The total dependency ratio began to fall from 79 in 1970 as the child dependency ratio

fell with the baby boom generation moving into working-age groups and with old-age

dependency rising only marginally because of reduced death rates in older age groups. It is

estimated to have fallen to 64 in 2005. Thus India had begun to reap the demographic dividend

around 1980. But the process is likely to extend well into this century with the age-based

dependency ratio projected to fall to 48 in 2025 because of continued fall in the child

dependency ratio and then rise to 50 by 2050 because of an increase in the old-age dependency

ratio as the bulge moves forward and the death rate in the older income groups declines. The

window of opportunity offered by a population bulge has clearly opened for India.

The implication is clear. Just as the "excess population" argument failed to recognize the benefitsthat can be garnered if these excess workers could be put to work, the "demographic dividend"

argument ignores the fact that available workers are not automatically absorbed to deliver high

growth. Strategies exist to exploit the demographic window of opportunity that India has today.

But they need to be adopted and implemented. India's experience during the liberalization years

suggest that markets do not ensure that they would, resulting in the waste of a potential resource

that the country's demographic transition temporarily offers.

BRAIN DRAIN/ HUMAN CAPITAL FLIGHT

There are many problems that plague our country today. They are Poverty, pollution, corruption,population, explosion and terrorism. We are being pushed behind by one other reason called

Brain Drain.

After completing their education in India, people often leave for foreign countries in search of

better working environment and pay package on account of unemployment. This concept of

taking education in a country but earning for another is known as brain drain or the humancapital flight. Asian countries have been a victim of such concept since the west opened up job

opportunities for eastern countries. They get cheap and hardworking labor in this manner.

Scientists, engineers, doctors and inventors are flying to foreign countries, blaming our country

for lack of opportunities.

Indian education system is counted amongst the best in the world. The land of Aryabhatta has

given many intelligent minds to the world. The Indian system of education follows a smooth

hierarchy from basics to perfection. The school drop outs in India are very less as compared to

other parts of the world. But still there remains a huge uneducated population that sometimesnullifies the effect of the good things that the intelligent minds of India do.


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Unemployment in India has been an overused excuse by the ones who are responsible for suchbrain drain and also by the ones who are desperately trying to contribute to the same. The

opportunities inside the country suddenly seem small and worthless in front of the starry image

of the west. More than anything else, better lifestyle and a developed country name to exhibit,

has lead people into migrating their working areas from their native place to a western country.

Brain Drain is a very harmful factor for a poor country like as our India. If the meritorious brain

goes towards the west or other countries, then how is it possible to develop our country? It is a

true factor that many meritorious students want to work with a new technology, but this

technology is not launched in India yet. For this reason the student should go further for study

with the subject. But he will have to come back to India after completing his study and dosomething for India by the new technology. But for those who go further for the more money and

don't come back to India as because there is less money in India, for them there will be certain

steps, have to be introduced by the government.

The implications of the brain drain for the people in the sending country, the country that the

doctors are being drained from. Some people argue that this is why India has benefitted

from/despite brain drain while other countries have been damaged by it. Indias valley-dwellers

represent just one contingent in a much larger diasporas. According to the most exhaustive study

of the brain drain, released last month by the World Bank, there were 1.04m Indian-born people,educated past secondary school, living in the 30 relatively rich countries.

Advantages

The money the emigrants have sent back home in foreign currency has helped in

alleviating poverty in their homes and adding to the countries funds and also


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It has resulted in less child labor, greater child schooling, more hours worked in self

employment and a higher rate of people starting capital intensive enterprises.

The effects of the brain drain there can be ambiguous - while it leeches away many

talented professionals, it also creates incentives for others (who might not have seen

education as lucrative before) to get educated, and can therefore create a more educated

population than would have existed without brain drain Opportunity to learn latest technologies. Indian students had little reason to learn

computer coding before there was a software industry to employ them. But such an

industry could not take root without computer engineers to man it. The dream of a job in

Silicon Valley, however, was enough to lure many of Indias bright young things into

coding, and that was enough to hatch an indigenous software industry where none existed

before.

The money remittances have also reduced the level and severity of poverty.

Going with an intention of returning and practically implementing the knowledge gained

over there. Now-a-days, many doctors went to foreign country for further studies, they

come back home and treat the people of India and they do something for India. InPrevious days, the cricketers, Ministers, and business-men went to the foreign countries

to treat themselves by the highly qualified doctors, but now a days they don't go to theabroad. They do their treatments in India only since we have the best pool of doctors.

Moreover, the money migrants sent back are spent more ininvestments such as

education, health and housing, rather than on food and other goods.

Disadvantages

Due to the influence of brain drain, the investment in higher education is lost as the

highly educated person leaves India and becomes an asset to other country. Medical

professionals migrating to the West followed a more complicated route and yet,

according to one estimate, there are more than 70,000 doctors of Indian origin in the U.S.

alone. Similarly, there are large numbers elsewhere in the West, and not only in the West

Also, whatever social capital the individual has been a part of is reduced by his or her

departure.

With all the college graduates leaving their homelands, it raises the question as to

whether their skills are being put to good use in the destination country. I

There is a shortage of skilled and competent people in India.

A tremendous increase in wages of high-skill labour can be seen now in India.

The emigration has also created innumerous problems in the public sector. Today, the Indian diaspora all over the world is estimated at more than 20 million but

there does not seem to be a figure for professionals as such. However, the outflow of

Indians with talent, training, and technical skills has been a notable feature in the

country's recent outward migration pattern; hence brain drain is surely a big loss to India.

POTENTIAL OF INDIAS POPULATION
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The appearance of India as an economic and technological powerhouse may be the most

surprising, most compelling, and most inspiring story of the last thirty years. The road that India

has taken was not always easy, nor was it always clear. Neither is the path ahead, but with a

vision for the future, the discipline to persevere, and a commitment to work together as a nation

to achieve our goals, anything is possible.

The Human Variety

The IT and BPO industry were the first to exploit the potential of Indias people on a large scale,

but every day, more and more business leaders are waking up to this reality in different sectors.

Reversing the Brain Drain

The rise of Indias middle class is no accident. For decades, the Indian education system has

created a formidable workforce of highly-trained engineering and technology professionals.

Global brands like GE, IBM, Intel, SAP and Oracle have all discovered the capabilities of Indian

engineers, and have set-up research and development centers here to develop the next generation

of their products for the global marketplace. These multi-national R&D establishments utilize thesame people, technology and infrastructure assets as the IT and BPO services industry, yet the

finished products do not belong to India.

The next logical step in the evolution of India-based R&D is to utilize this collective brain power

to foster the creation of intellectual property by Indians for Indian companies. However, this will

require a more fundamental shift in our education system to move from learning tothinking

based knowledge assimilation. The focus of our schools and universities should be to train

students to innovate rather than simply replicate.

There are many examples of Indias ability to innovate, especially when dealing with resource

constraints. The Tata Nano is a prime example, born out of the necessity to conserve raw

materials and serve a different class of consumer. Given the current global spotlight on

conservation and environmentally conscious business practices, Indias unique brand of

innovation makes it ideally positioned to create products for a leaner, greener world.

Fostering Entrepreneurship

The Indian cultural ethos has traditionally been oriented towards seeking employment, initially

in the public sector and more recently in the private sector. Entrepreneurship only used to be an

option for the privileged, and few educated professionals saw it as a viable career option.

However, the growth of the IT and BPO industry propelled by first-generation entrepreneurs

like Bharat Desai, Narayan Murthy, Nandan Nilekani and Raman Roy has done much to

change the mindset of the current generation of Indians. Entrepreneurial activity has now

expanded beyond IT and BPO to many different sectors including retail, media, entertainment,

real estate and infrastructure. Many of our leading business schools offer courses in


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entrepreneurship, and some have incubation facilities to nurture viable business ideas. The

challenge is getting these ideas out of the classroom and into the boardroom. Just as a

hydroelectric dam serves no purpose until it is connected to the grid, the key to harnessing

Indias entrepreneurial energy to give it an unfettered pathway into the marketplace.

The goal of the Indian Government should be to replicate the success it has enjoyed in IT and

BPO in other industries. What we need is the support and infrastructure to nurture and develop

entrepreneurs in multiple sectors by creating policies and a regulatory environment that are

friendly and conducive to new small businesses

PESSIMISTIC OUTLOOK OF THE POPULATION

Negative perception of the population which will hamper dividend demographic:

A research paper has outlined the effect of population on the environment. According to this

research, environmental pollution is one of the serious problems faced by the people in the

country. Rapid population growth, industrialization and urbanization in country are adverselyaffecting the environment. Though the relationship is complex, population size and growth tend

to expand and accelerate these human impacts on the environment. All these in turn lead to an

increase in the pollution levels. However, environmental pollution not only leads to deteriorating

environmental conditions but also have adverse effects on the health of people. India is one of

the most degraded environment countries in the world and it is paying heavy health and

economic price for it.

Population impacts on the environment primarily through the use of natural sources and

production of wastes and is associated with environmental stresses like biodiversity, air and

water pollution and increased pressure on arable land. India is the world's sixth largest andsecond fastest growing producer of greenhouse gases. Delhi, Mumbai and Chennai are three of

the world's ten most populated cities. Two-thirds of city dwellers lack sewerage, one-third lack

potable water. India grows equivalent of another New York City every year in its urban

population. In 15 years, more than half of Indians will be urban dwellers; 1/3 will be slum

dwellers and squatters

For those in search of simplistic explanations of underdevelopment, excess population has

always provided an easy way out. Large populations are seen to result in high levels of aggregate

consumption at even low levels of per capita income, resulting in small surpluses. Since these

surpluses must be spread thin across the population, their effects in terms of growth ofemployment and income are seen as limited. Moreover, with limited resources thinly spread

because of large numbers, the tasks of feeding the population, ensuring universal access to

education and health and delivering basic services like water and sanitation are seen as near

impossible. The conclusion then is that the growth of population has to be controlled if economic

growth has to be triggered and the quality of life improved.


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Government plans to promote the importance of condom to every home in the villages.

Government Plans to take condoms to every home in India's villages to control human capital.

India's health ministry is preparing a plan to ensure the availability of condoms in each house of

the country's six lakh villages in a bid to curb the population explosion. He firmly believes that

equitable, inclusive and sustainable growth ofIndia depends on healthy and stable population.

According to him, it is a matter of great concern and feels that urgent steps need to be taken tostabilize the population for sustainable development. The plan is being prepared on the direction

of health ministerGhulam Nabi Azad, who has ruled out legislation to control the population.

Azad wants to take condoms to every home in the six lakh villages in India. He thinks that

accessibility of condoms at the door-steps of the villagers would help control the population,

which is projected to be 1.19 billion in 2011.

"A condom is needed when it is really required. The plan is being prepared keeping this thing in

mind. According to sources, the ministry is seriously thinking to draw on the help of

the Accredited Social Health Activist(ASHA), affiliated to theNational Rural Health Mission,

to run its scheme. An ASHA worker- primarily a woman resident of the village,

married/widowed/ divorced, preferably in the age group of 25 to 45 years - is trained to work as

an interface between the community and the public health system. An ASHA worker, who is a

literate woman with formal education up to class eight, will be trained accordingly to spread the

message of condoms to the rural households.

TRADE UNIONS IN INDIA

Trade Union in India is the primary instrument for promoting the union of trade union

movement and championing the cause of working class in India. The Madras Labor Union was

the first organized Trade Union in India followed by a large number of trade unions in the Indian

industrial centers. The Indian government passed the Trade Unions Act in 1926, which legalized

the registered Trade Union in India. The Act also gives protection to these trade unions against

certain civil and criminal cases.

Significant Trade Union in India:

The Trade Union in India is engaged in protesting against the attacks on trade union right, right

to strike, right to collective bargaining, reduction of social security, closure of industrial units

and massive retrenchment of workers, and the endangering growth of unemployment.

There are many Trade Unions in India which regulates the aspirations of the working class.The All India Trade Union Congress (AITUC) is the oldest Trade Union in India and till 1945 it

remained the central trade union organization in India.

At present there are twelve Central Trade Union Organizations in India:

1. All India Trade Union Congress (AITUC)

2. Bharatiya Mazdoor Sangh (BMS)

3. Centre of Indian Trade Unions (CITU)
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4. Hind Mazdoor Kisan Panchayat (HMKP)

5. Hind Mazdoor Sabha (HMS)

6. Indian Federation of Free Trade Unions (IFFTU)

7. Indian National Trade Union Congress (INTUC)

8. National Front of Indian Trade Unions (NFITU)

9. National Labor Organization (NLO)

10. Trade Unions Co-ordination Centre (TUCC)

11. United Trade Union Congress (UTUC) and12.United Trade Union Congress - Lenin Sarani (UTUC LS)

Example of significance of trade union in India

A Strike called by the All India Trade Union Congress on the 7th sept in Goa

A massive turn-out of workers and citizens is conducted a one day strike at Panaji on September

7, organized by the Goa convention of workers as part of the nationwide strike called by the All

India Trade Union Congress (AITUC). The Goa convention of workers comprises all major trade

unions in Goa including AITUC, INTUC, BMS, and CITU. The workers and citizens gathered at

9 am on the decided date near the Kadamba bus stand, Panaji and then organized a massivemorcha near the Custom's House.

The reason is that this strike protested the injustices done to ordinary citizens and not only to

workers. The strike is intended to force the government to roll back the price rise of food grains,

essential commodities, petroleum products, etc. The strike has several demands including the

demand that government should give` 300 per day as minimum wages to all daily, casual and

contract workers.

The strike also demanded a stop in the system of contract labour employment in all government

departments like PWD, electricity, health, forest, education, Kadamba transport corporation, Goa

Medical college, etc.

The trade unions demand a ban on contract labour employment in all government, public, private

and commercial establishments and services in permanent job operations. They demand a

regularisation of the services of workers on the rolls of the respective establishments. Fonseca

said that the demands of central trade unions include a rollback on prices of petrol, diesel,

kerosene and LPG cylinders, control on prices of all essential commodities, strengthening of the

public distribution system (PDS), a stop to the violation of labour laws, stop on the sale of profit-

making public sector undertakings, etc.

DEVELOPING HUMAN CAPITAL FOR A DEMOGRAPHIC DIVIDENDAt the World Economic Forums fall meeting in New Delhi, five experts discussed the

challenges and opportunities India faces as its population becomes increasingly youthful.

Although Indias stars are more perfectly aligned, its success is anything but guaranteed. The

value of Indias demographic dividend will depend in great measure on whether the public and


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private sector have the political will and foresight not only to create jobs but also to train the new

workforce, encourage global trade, improve a failing education system, provide better housing,

lure capital to support innovation, and implement policies that engender confidence in the

economy. Given Indias relatively strong democracy, government institutions, and

entrepreneurial sector, its attempts to grapple with these thorny issues would seem to offer

learning opportunities for other countries that are still a step or two away from enjoying a

demographic bounty.

To explore Indias prospects what the country must do and what it must avoid; its possible

economic weaknesses and how it can make the best use of its people, businesses, government,

and creativity.

A new report highlights how Indias demographic advantage remains more notional than real.

According to a study, Indias Rising Labour Force, an additional 110 million workers will join

the countrys workforce by 2020, followed by another 100 million in the subsequent decade. Inthe abstract, this eye-boggling demographic expansion will be a critical driver of economic

prosperity, adding four full percentage points to Indias already high economic growth rates

Another new study,

The Indian Labour Report 2009,

notes that the median age in India is anastounding 24 years, with 12.8 million new entrants into the workforce each year. The key take-away in both reports, however, is that the widely-touted demographic dividend could well turn

into a debacle, since much of the burgeoning growth in the workforce will come from the poorly

educated and impoverished districts in the countrys northern heartland. For example, over thenext decade, the states of Uttar Pradesh, Bihar and Madhya Pradesh will contribute over 40

percent of the workforce increase but only 10 percent of the growth in national GDP.

The vast inadequacies of Indias public schools are an immense hurdle in capitalizing on the

countrys demographic potential. In terms of the availability of resources and their effectiveness,the public education system scores poorly relative to the other BRIC countries and to other

emerging market countries. India exhibits the lowest educational indicators in the G-20, andonly a meager amount of the workforce has received formal vocational training. Kapil Sibal, theminister in charge of developing human capital, speaks of a recipe for disaster. You have a

huge national pool of unskilled youngsters who have no avenues for gainful employment.

India's so-called "demographic dividend" of a younger population compared to developed

countries is as much an opportunity as it is a challenge. The task of meeting global talent needswith an educated and trained workforce is too huge for any one nation to take on.

Kapil Sibal, India's minister for human resource development, reported that by 2050, the

percentage of people above the age of 65 will be 39% in the U.S., 53% in Germany and 67% in

Japan. India, by contrast will have only 19% above age 60, according to an International LaborOrganization paper. "I've had sleepless nights; the task is daunting," Sibal said at a conference,

referring to the infrastructure required to educate and train India's workforce of tomorrow. "It's

not just India's problem; it is a global issue."Sibal's goal is to get at least 30% of India's 240million schoolchildren into higher education over the next decade, up from the 12.4% currently.

"Any nation must ensure that a critical mass of people move into the university system -- not less

than 30-40%. Otherwise, it cannot build wealth," he noted. Making that task more difficult is thefact that 46% of India's schoolchildren drop out before they get to middle school. Sibal's broadest


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offensive on that front was to convince India's Parliament to enact the Right to Education Actlast August, which makes education a fundamental right for children between ages 6 and 14.

Children and communities can go to courts of law to enforce that right; the lack of financial

resources is an unacceptable excuse, Sibal pointed out.The task becomes "massive and huge," as

Sibal moves to the next lap of creating an infrastructure for higher education to meet his 30%enrolment target. India currently has 480 universities and 22,000 colleges.

Harnessing India's Human Capital through Educational Opportunities

To know development in a society, Literacy is another proper indicator of

economic development. For purpose of census, a person in age limit of seven

and above, who can both write and read with understanding in any of the

language is considered as a literate in India.

India's growth depends on its ability to significantly revamp its dismal

education sector, which suffers from problems of outreach and quality.

A recent study shows that the public education sector may be beyond saving.

A possible solution comes in the form of sustainable investments in a vast network of private

schools delivering standardized, high quality education at an affordable price to the low income

mass market customer. The investments in schools would take the form of financial resources,

organizational support and value-added services to help these schools become efficient and

effective educational institutions.

As per 2001 Population Census of India, the Literacy rate of India has shown as improvement at

65.38%. It consists of male literacy rate 75.96% and female literacy

rate is 54.28%. Kerala with 90.86% literacy rate is the top state inIndia. Mizoram and Lakshadweep are at second and third position

with 88.80% and 86.66% literacy rate respectively. Bihar with 46%

literacy rate is the last in terms of literacy rate in India.

Government of India has taken several measures to improve the

literacy rate in villages and towns of India. State Governments has

been directed to ensure and improve literacy rate in districts and

villages where people are very poor. There has been a good improvement in literacy rate of India

in last 10 years but there is still a long way to go.

List of Steps taken by Government of India to improve Literacy Rate in India:

Free education programs to poor people living in villages and towns.

Setting up of new school and colleges at district and state levels.


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Several committees have been formed to ensure proper utilization of funds allotted to

improve literacy rate.

If we dont provide educational opportunities for rural India, we may well be unable to meet this

demand, and the progress we have already made could slip away. Moreover, if the citizens of

this country continue to be divided by basic issues such as healthcare and education, we will

never reach our full potential and overcome the stigma of the Two Indias.

Employment opportunities-

The path thus far has not been easy. It has required enormous government investments in

education and infrastructure, countless hours spent by entrepreneurs building their businesses,

and the hard work and tireless pursuit of knowledge by legions of ambitious students.

Another signal reason for Indias problems in exploiting its labor advantage resides in the highly-

restrictive laws shackling the capacity of large-scale manufacturing companies to absorb surplus

rural labor. India ranks 83rd in terms of labor market efficiency among a sample of 133 countries

(Chinas score is 32nd place). Because of this rigidity, nearly 90 percent of manufacturing jobs

are in small enterprises that as a whole account for only a third of total manufacturing output. As

a result, much of the industrial sector is unable to reap gains from scale economies and remains

largely skill and capital-intensive - a upsetting variance given Indias raw demographic bounty.

In order to absorb all the new workforce entrants over the next decade, the manufacturing sector

will need to create 40 million new jobs. Both studies caution that India desperately needs to

perform important labor and educational reforms in order to capitalize on its demographic

dividend and secure its economic future. Whether the countrys political class can muster therequisite will to do so, however, is a worryingly open question.

In order to sustain Indias growth and dominance in Human Capital, IT and BPO companies

must expand to smaller cities within India to successfully manage their business models. Our

major metropolitan areas are too congested to support further expansion, and to leverage Indias

growing workforce we will have to develop additional geographic capacity. This will require

another round of investment in developing roads, power grids, telecom connectivity and

municipal.

India also needs a significant expansion of entrepreneurial activity to trigger the next wave ofsocio-economic development. Syntel has taken the lead in this area in Students in Free Enterprise

(SIFE), an international organization that promotes entrepreneurship and community

involvement. By encouraging and mentoring young college students to start businesses in their

communities, we can not only develop the next generation of business leaders, but also make a

positive impact on the lives of the disadvantaged among us. The organized sector employs less

than ten percent of Indias 500 million-strong workforce. Of this, the private sector accounts for


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only three percent. In order to keep up our economic momentum, India needs to create 150

million new jobs over the next decade for people entering the workforce.

Each one of us is part of Indias future, and it is up to all of us to collectively harness the

untapped potential of millions of Indians to make a positive impact on our own lives, on our

country, and on the world as a whole. Instead of taking our own separate paths, lets meet the

future together.

Bibliography/References

Summer 2010 magazine

Times of India- 8th September 2010

www.economist.com

www.economictimes.com

www.wikepedia.com

GRAPHS

Population growth rate: 1.407%
http://www.economist.com/http://www.economictimes.com/http://www.wikepedia.com/http://www.economist.com/http://www.economictimes.com/http://www.wikepedia.com/


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Year

Population growth

rate Rank

Percent

Change

2008 1.58 87

2009 1.55 84 -1.90%

2010 1.41 93 -9.03%

Definition:The average annual percent change in the population, resulting

from a surplus (or deficit) of births over deaths and the balance of migrantsentering and leaving a country. The rate may be positive or negative. The growth

rate is a factor in determining how great a burden would be imposed on a country

by the changing needs of its people for infrastructure (e.g., schools, hospitals,

housing, roads), resources (e.g., food, water, electricity), and jobs.

CountryAge group ofpopulation by 2020

India 29


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Japan 48

China 37

U S 37

Western Europe 45

The chart shows some of the countries and the age groups of its

population. It says that the average population of India by 2020 will be

29 years of age; as in case of Japan it will be 48 years of age; in case of

china and U S it will be 37 years of age; and in case of Western .Europe

it will be 45 years of age. From all the figures we can conclude that by

2020 India would be the only country with young population with an

average population of 29 years. And the other entire countries in the

chart have the average population above the 35 years.


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The above table and the charts show the increase in population over the years from

1950 to 2050, we can see that there is a steady increase in the population of India.

In 1950 it was 369,880 which increased to 445,857 in 1960.and continued to

increase every year it was 555,043 in 1970, 690462 in 1980,850558 in 1990,

1017645 in 2000, 1182171 in 2010, 2020 it will be 1340865, in 2030 it will be

1484847,in 2040 it will be 1607752,and in 2050 it will be 1706951.

years Population of India

1950 369,880

1960 445,857

1970 555,043

1980 690,462

1990 850,558

2000 1,017,645

2010 1,182,171

2020 1,340,865

2030 1,484,847

2040 1,607,752

2050 1,706,951

INDIAN HUMAN CAPITAL

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