India is set to add about one-fifth of incremental global youth population in the next two decades. This relative “greening” of India’s population and workforce is expected to bring down dependency ratio, increase savings rate and investment ratios, boost macroeconomic growth and yield a demographic dividend for the country, but this depends on whether the additional youth workforce finds remunerative and productive jobs. Examining the employment situation of the youth in India, we discover that labour force participation rate and work participation rate are declining, caused mainly by increased participation in education, but the increasing unemployment rate is worrisome.
