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“As the ambition to become a global manufacturing hub and an export powerhouse materialises, the employability of the working age population will go up and India will experience rising incomes and prosperity,” stated RBI Deputy Governor Michael Patra on Tuesday.
He noted that this transformation is not just an economic goal but a pathway to enhancing the lives of millions.
India’s Demographic Advantage
Patra emphasised India’s unique position with the youngest working-age population globally.
Referencing United Nations projections that India’s working-age population will grow by 9.7 million annually, reaching 68.9% of the total population by the 2030s, Patra said that India is on the brink of a significant labor force expansion.
This surge represents not just a number but a dynamic opportunity for economic advancement, he added.
Upskilling for a Modern Economy
On the demand side, Patra elaborated on India’s strategy to rapidly upskill its growing workforce.
“As the largest producer of STEM graduates globally, over 2 million each year, with 43% being women—India is leading in digital innovation and technology adoption,” he stated.
This focus on education and digital skills, he argued, is crucial for preparing the youth for the demands of a modern economy.
Path to Sustainable Economic Growth
“The rise in India’s working-age ratio, supported by higher saving and investment rates, is expected to spur a significant boost in per capita GDP growth,” said Patra.
He emphasised that this demographic dividend, coupled with advancements in digital innovation and infrastructure development, will be key drivers in achieving the ambitious economic goals set for 2047.
“India’s quest to become a leading manufacturing and export power is not just about economic growth but about creating new opportunities, elevating incomes, and reinforcing our position on the global stage,” he said.
He also stressed the importance of building world-class infrastructure and fostering a conducive environment for innovation, aiming for a greener, cleaner, and more inclusive future.
“In sum, India’s manufacturing ambition is set to deliver substantial benefits, enhancing employability and driving prosperity for millions,” Patra concluded.
The RBI Deputy Governor Michael Patra was speaking at the Financing 3.0 Summit: Preparing for Viksit Bharat organised by the Confederation of Indian Industries (CII) held in Mumbai.
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