Rajesh Shukla: The clock is ticking away for our youth dividend to aid progress

A recent study by People Research on India’s Consumer Economy (PRICE),Navigating the Youth Frontier, offers valuable insights into the world of young India. It highlights a generation that is both ambitious and hopeful. Like their global peers, Indian youth aspire to quality education, meaningful employment, digital connectivity and upward mobility. While many of these goals are increasingly within reach, progress remains uneven, with some structural challenges limiting the full realization of these aspirations.

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India has made significant progress on access to education. Only 3% of youth are now illiterate, and over 30% have completed their graduation or higher studies. However, a growing body of evidence shows that improved enrolment has not necessarily resulted in better learning outcomes. The problem of ‘learning poverty’—where children fail to gain basic reading and numeracy skills by age 10—remains acute. Education reforms must now pivot from enrolment to outcomes.

Improving the quality of education is critical. This means empowering teachers, modernizing the curriculum and integrating digital tools into classrooms. At the same time, education must become more inclusive and affordable across economic and geographic divides. India cannot afford an education system that works only for the privileged few in urban centres.

The PRICE report also reveals stark regional inequalities in educational attainment. In states like Kerala and Tamil Nadu, more than 50% of youth have completed graduation or higher studies. But in Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh, only around 20–22% reach that level. Worse, about a quarter of the youth in these states have only completed primary education, compared to just 1% in Kerala.

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These regional disparities have significant consequences. Youth from less developed states face limited opportunities, pushing them to migrate or settle for low-quality jobs. Without focused investment in human capital and local skill-building ecosystems, this imbalance risks becoming a structural drag on India’s growth story.

The challenge is compounded by a growing mismatch between education and employment. Many educated youth, particularly graduates, are unable to find jobs that match their skills. They face long waiting periods, accept jobs below their qualifications, or remain unemployed. On the other hand, employers consistently report a shortage of job-ready candidates. This dual crisis—of low employability and underemployment—is one of the most pressing issues facing India.

This misalignment has also intensified the demand for public sector jobs, especially in slower-growing regions. These roles, perceived as stable and respectable, are highly sought after. But the mismatch between supply and demand is unsustainable and has occasionally led to frustration and unrest. If left unaddressed, it could undermine the very social stability that India’s growth ambitions rest on.

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To unlock the full potential of India’s youth, a coordinated and inclusive strategy is required.

First, education must be reoriented to prioritise learning outcomes. Foundational literacy and numeracy must be universal while vocational and technical education should be scaled up and aligned with market demand. Special attention must be paid to rural and economically weaker regions.

Second, employment generation and entrepreneurship must be accelerated. India’s startups and micro, small and medium enterprises (MSMEs) must be supported beyond metro cities. Policies that encourage job creation in Tier 2 and Tier 3 cities can absorb local youth and reduce migration. At the same time, the gig economy—while offering flexibility—requires a regulatory framework to ensure fair wages, job security and benefits.

Third, social and economic disparities must be narrowed through targeted interventions. Financial aid, mentorship and digital access for disadvantaged youth must be scaled up. Gender equity in education and the workplace also needs urgent attention. While more girls are in school today, that progress must translate into meaningful women’s participation in the workforce.

Fourth, India must fully leverage its digital public infrastructure. Tools like Aadhaar, UPI and DigiLocker have transformed access to services. These platforms can now be harnessed to support skilling, entrepreneurship and financial inclusion for the youth. Digital literacy, particularly in rural areas, is essential to widen opportunity.

Finally, the youth must be empowered to participate in shaping the country’s future. They must not only be seen as job seekers, but as stakeholders in governance and policy. Encouraging civic engagement, youth-led innovation and leadership development will foster a generation that contributes actively to the nation’s progress.

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India’s ambition to become a developed nation by 2047 rests significantly on how well we tap our youth potential. The next two decades provide a narrow window. We must invest boldly and inclusively, with an eye on outcomes. India’s young people are not looking for handouts. They are asking for access to opportunity and dignity.

If we can meet them halfway—with responsive policy, quality education and meaningful work—India’s youth won’t just support the economy, but redefine it. A demographic dividend is not a certainty. It’s a race against time. The clock is ticking.

The author is managing director and chief executive officer of People Research on India’s Consumer Economy.