What India can give to the world

by:- DILIP JHUNJHUNWALA

MA (Eco.), MBA
dilipjhunjhunwala@yahoo.com
21st century: Asia’s Century
Power shift from Atlantic to Asia

Emerging New World Order

Indiaon strategic Radar of

Developed and Developing world
 India’s Advantage
 Demographic
 Societal Building Block
 English language
 Affinity to maths
 Credible IT image
 Steady Growth Trajectory
 Strong will, enthusiasm and spirituality that gives
honesty & commitment to the workforce.
 Workforce shortage in developed
countries by 2020

Maximum projected shortage

 United States– 6.1mn

 Canada – 1.7 mn
 Spain – 2 mn
 Japan – 2.8 mn
Over 50% shortage predicted in English
speaking countries.
 Median age by 2025
 USA – 39.3 years
 Canada – 42.9 years
 Mexico – 32.5 years
 Europe – 45.4 yrs
 France – 43.3 yrs
 Italy – 50.7 yrs
 UK 44.5 yrs
 Russia – 43.8 yrs
 Japan – 50 yrs
 China -- 39 yrs
 India -- 31.3 yrs
 India – youngest country of the
world
 Average age today 23 years while that of
Japan 41 years.

 Demographic Dividend:
YOUTHFULNESS
 Future
 In 2025, out of every 100 workers in India
12.1 will be above 65 yrs as compared to
49 in Japan.

 In next 10 years, India will create 47

million workforce to lead the world. 100
million at present are in schools.
 Reality check
 1080 mn population with a 482 mn
workforce. Unemployment at 9.2%
 By 2020 – 63 mn unemployed, more than
entire population of UK, France & Italy!
 90% of workforce in the unorganized
sector.
 Low skill levels among women causing rise
in unemployment rate for women.
 India’s labour Market
 Labour force participation is low 560 million of a
1 billion population
 Organized employment has been stagnant at 40
million since last 30 years!
 Unorganized employment is the bulk of labour
force (350 million)
 Given the employment elasticity of 0.15 and
ICOR(3.75), the 8 million new jobs needed to
freeze unemployment, requires GDP growth of
13% and investment of $ 130 billion.
 Problems
 Low overall productivity due to lack of
supportive nationwide infrastructure
 Large number of people become apprentices in
the unorganized sector to pick up saleable skills.
 Skills generated in the unorganised sector have
no formal recognition! (people with manual work
in India has higher happiness index)
 Labour market opportunities for even the most
skilled labour are restricted to local market
 An idea
Alternatively viewed, this means that India has the
unique opportunity to:
 Complement what an ageing world needs the

most- productive workers

 Provide investment opportunities for ageing

countries for sustained return on investment

(liberal economic policies, stable political
environment, cheap productive sources and vast
market at present)
 Vision
 J.F Kennedy said, “We must reach the
moon” and we reached

 Mahatma Gandhi said, “Independence

without violence”. We achieved it.
 VISION

Today’s slogan:

“India - The Skills Capital of the World”

 New world new priority

There was a time to die for the nation , now

it is the time to live for the nation.
 Momentum
 India has the potential to become the skill
capital of the world (It provided “0” to the world
leading to today's global technology but missed
the mid course correction!)
 Labour force is skilling fast with vast and rapid
increase of education opportunities.
 Many things need to be done for India’s rapid
transition out of poverty and under-development
specially in rural India.
 Propositions
In addition to white and blue collar skills, India
needs to recognize:

 Its vast pool of knowledge workers

skilled workers at the grass root level in

unorganized sector.
Government needs to provide recognition to the
workforce in unorganized sector to make them
employable by the MNCs entering India.
 India needs thought shift
 From employment to employability (By rapidly making
the provision of ‘industry oriented practical skill
education’ rather than current focus on traditional
academic degrees)

 Giving school education system a global air.

 Urgent need for genuine focus and clear strategies for

providing infrastructure in rural and semi-urban areas
through private public participation
 THANK YOU

The journey has just begun

Dilip Jhunjhunwala

dilipjhunjhunwala@yahoo.com