OPINION I The Economic Times

India's ambition to become a developed economy by 2047, marking the centenary of its independence, places significant emphasis on the role of its youth. As per the National Youth Policy, Indian youths are aged between 15 and 29 years. In 2024, India's youth population stands at around 420 million, making up roughly 29% of the total populace. Notably, about 20 million (5%) of these youths are first-time voters in the upcoming elections. They represent a crucial demographic, holding the power to shape their future and contribute significantly to realizing the vision of a developed India by driving economic growth and social change.

Let’s therefore take a look at what they aspire to, who they are and where they live. PRICE survey research has shown that nearly 268 million (or 64%) reside in rural India while 152 million (36%) live in urban India. The survey of Indian youths identified six key national priorities for the next five years: 1) ensuring access to high-quality education to build a skilled workforce, 2) managing inflation to maintain affordability of essential goods and services, 3) improving healthcare services, particularly in the wake of the pandemic, 4) enhancing infrastructure to support economic activity and connectivity, 5) creating more job opportunities to utilize the demographic dividend, and 6) fostering inclusive economic growth to reduce disparities and ensure that the benefits of growth are widely shared. These goals reflect Indian youth’s comprehensive vision for the nation’s socio-economic development, focusing on immediate needs while aiming for sustainable and equitable long-term progress.

When asked about their individual aspirations for the next ten years, the top three included the desire for increased comfort, such as owning a car, house, and home conveniences (67%), desire to pursue personal interests (57%), and a longing for a stress-free, hassle-free and convenient life (50%). Additionally, they also aspire to attaining incomes that help them grow their personal spending (42%), adopt a healthy lifestyle (36%), secure quality education for themselves and their families (32%), and attain fulfilling jobs and other achievements (22%). These aspirations signify a desire for a blend of material well-being and personal fulfillment in the coming decade.

Today's youth are digitally savvy for whom connectivity is an essential requirement. A significant majority possess essential digital tools, including bank accounts (84%), Aadhar identification (96%), and mobile phones (81%). Additionally, about two-thirds utilize the Internet, while one-third engage in digital payments, underscoring their adeptness with digital platforms and services.

Education is one of the most critical factors that helps shape the minds of the young and enables them to become productive, resourceful and innovative citizens of the nation. Nearly 129 million Indian youth (31%) have studied until graduation. About 93 million or 22% have studied up to a higher secondary level and 18% or 76 million are matriculates. Nearly 73 million (17%) have only done up to primary schooling while illiterates form the smallest group at 13 million or 3%. Even though the illiterate/primary segment is the smallest, in sheer numbers it amounts to almost 86 million which is one of the key challenges for the government.

Southern states in India exhibit significantly higher levels of higher education attainment among youth compared to other regions. For instance, in Kerala and Tamil Nadu, over 50% of youth are graduates or above, while in the BIMARU states (Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh), this figure is only around 20-22%. Conversely, the proportion of youth with primary-level education is notably higher in the BIMARU states, ranging from 20-25%, compared to Kerala where it is merely 1%.

The regional divide in educational levels has tremendous implications for the youths in these states. Unless the states can address the aspiration levels of the youth and provide them with adequate employment and/or entrepreneurship opportunities, scope for upskilling and upgradation, this could become a major pain point that will end up inhibiting economic growth.

Currently, approximately 168 million (40%) Indian youths are earners, collectively contributing about 43% of the total household disposable income. Among them, one-fourth is employed in salaried positions, 37% is involved in business activities, and 32% work as casual labourers. The remaining 6% are engaged in farming and related agricultural activities. Interestingly, among the total salaried youths, a significant majority, comprising 75%, are employed in private enterprises, while only 16% are employed in government, public, or autonomous enterprises. This disparity underscores the predominance of the private sector as a source of employment for the youth in India.

Indeed, social security remains a significant concern in India, particularly for employed youths. Only 40% of salaried youths have permanent jobs with written contracts from their employers. Additionally, a relatively low proportion of youth are covered under key social security schemes: 32% are covered under the Provident Fund, 18% are eligible for gratuity, and a mere 16% will receive a pension upon retirement. Enhancing social security provisions for employed youths is crucial for securing their future and ensuring a more stable and prosperous India.

Clearly, the government's role is pivotal in unleashing the potential of India's youths through policies that prioritize education, healthcare, job creation, and social security. It's crucial to invest in skill development and address regional disparities. At the same time, youths need to recognise the next 25 years are crucial for shaping both their futures and the trajectory of India's development goals towards a 'Viksit Bharat'. This entails focusing on personal growth, education, and active participation in civic endeavours and entrepreneurship. Collaboration with government initiatives and a commitment to sustainability and inclusion are essential for achieving these goals. More than a century ago, Swami Vivekananda had exhorted the youth of India to develop “muscles of iron” and “nerves of steel” to serve humanity. His advice is perhaps more relevant today than ever.