"The labour force of India is second only to China. It is expected to increase further as India is likely to touch a median age of 29 years by 2020 (E&Y and ASSOCHAM, 2014), while other economies including China and the Western countries will have older populations. This rising population of young people should, in theory, help India reap its demographic dividend that will set the nation on a sustainedÂ high growth trajectory. With the Indian economy touted to touch the 10 trillion USD gross domestic product (GDP) by 2030 (NDTV, 2014), relevant skill sets will play an important role in shaping the economy. However, these simplistic assumptions have ignored the fundamentals of the Indian economy. For the overall growth of the country, all the states in the country need to do well. This necessitates a narrowing down of significant differences in the economic achievements of the different states overtime. Convergence happens through trade and through mobility of factors of production. However, during the 2000s, despite the overall standard of living increasing, states have become divergent in terms of economic achievements (Economic Survey, 2016-2017). According to the convergence hypothesis, growth rate of a state with lower per capita output tends to be hig
There is rising unemployment in India, which does not bode well for the future. With a major chunk of population in the young cohort, the challenges in the current system of skill development need to be revisited.