GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment; Effects of liberalization on the economy; Achievements of Indians in science & technology
Key Phrases: Economic Growth, demographic dividend, Brain-drain, talent factory of the world, working-age population, remittances, soft power, human development indicators.
Why in News?
The elevation of Parag Agarwal and Gita Gopinath to senior leadership roles in Twitter and IMF respectively became yet another proud moment for the country.
Keypoints:
- India has long been seen as the next big economic growth story after China. One of the primary reasons being its young population.
- Our home-bred talent commanded further recognition in one of the most competitive markets in the world, suggests that we’re doing something right for its people to get responsible roles across the world.
- India serves to be a steady and reliable talent factory to the world, providing CEOs, software engineers, academicians, doctors, nurses, and a host of skilled workers.
Reasons:
- The provision of a low-cost basic education,
- Emphasis on the English language,
- Imbibing of a common value system,
- Ingraining of the competitive spirit living in a populous country
- Lack of career growth prospects and career opportunities in domestic market.
- Success stories of Indians doing well abroad sends message to the middle-class, ambitious parents back home - for their children to make it big in life they need to send them abroad for higher education and work, thusbecomes a self-fulfilling prophecy.
Demographic Dividend:
- It refers to the growth in an economy that is the result of a change
in the age structure of a country’s population.
- In case of India, the window began in 2018 when the working age population began to grow larger than its dependent population (children aged 14 years or below and people above 65 years of age).
- It is expected to last for 37 years until 2055.
Benefits for India:
- It may be called the ‘brain drain’ but India earns a lot of real
(remittances) as well as social capital from this.
- The country is the world’s largest recipient of remittances with the World Bank estimating India to have received $87 billion in remittances in 2021.
- At a time when demographic changes and labour shortages have compelled developed economies such as Canada, Australia, New Zealand, Germany and even Japan to open themselves to immigration, India’s ability to cater to the global immigration demand holds it in good stead.
- Indians living abroad also enhance India’s image and soft power in international relations.
- Indian Americans – dubbed as the ‘model minority’, are the wealthiest and most highly educated immigrants in the US, becoming an influential group in domestic politics.
- With a globalized diaspora, India gets to tap its global talent whenever the need arises. Two of the recent past RBI governors – Raghuram Rajan and Urijit Patel - have been individuals that have studied and worked abroad
Way Forward:
- The rate of Indians leaving their country for better pastures may recede only when India transitions to become a high-income country offering growth opportunities, improvement in governance as well as a meritocratic culture.
- Till then it augurs well for the country to facilitate the current trend and work towards improving the human development indicators on the home front.
- The GoI needs to ensure low-cost mass education so that more people from economically weaker strata can enter the pool of talent being demanded by the world. The idea of ‘Padhega India, Tabhi to Badhega India’ should continue to be a policy goal for the governments at all levels.
Source: Economic Times
Mains Question:
Q. India is losing out on harnessing its demographic dividend and allowing a brain drain. Critically Analyse.
