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