Why in the News?

Recently, the Ministry of Education released the Unified District Information System for Education Plus (U-DISE+) data for the years 2022-23 and 2023-24.

Could India’s demographic dividend end before it becomes rich and ageing?

Declining School Enrolment Signals a Shrinking Youth Population: U-DISE+ data (2022-24) shows a 15.5 million drop (6%) in school enrolment since 2018-19, reflecting a demographic shift. This means that fewer young people will enter the workforce in the future.
- Over the past decade, school enrolment in India has dropped by 24.51 million (9.45%), with elementary-level enrolment seeing the sharpest decline of 18.7 million (13.45%). While secondary enrolment fell by 1.43 million (3.75%), senior secondary enrolment increased by 3.63 million (15.46%).
Shift in Schooling Patterns: Government and aided school enrolments have declined significantly, while private schools saw only a slight rise. The number of schools has also reduced by 79,109 (5.1%) since 2017-18, reflecting a long-term demographic transition rather than a temporary trend.
Falling Fertility Rate Below Replacement Level: India’s Total Fertility Rate (TFR) dropped to 2.01 in 2022, below the replacement level of 2.1. A declining birth rate leads to an ageing population without sufficient workforce replenishment.
Aging Population Before Achieving High-Income Status: Japan and China leveraged their demographic dividend before ageing, but India may age before industrializing fully. It leads to a higher dependency ratio and increased pension and healthcare burdens.
Labor Market and Economic Growth Concerns: China’s workforce peaked in 2011, leading to labour shortages and slower growth. India might face a similar scenario. It led to reduced economic productivity and difficulty sustaining high GDP growth.
Decline in Number of Schools and Future Workforce Readiness: The number of schools in India declined by 79,109 (5.1%) from 2017-18 to 2023-24, indicating fewer children. Fewer skilled workers, potentially impacting India’s aspirations to become a global manufacturing and service hub.
Demographic Shift: The school-age population (6-17 years) has decreased by 17.30 million (5.78%) due to lower fertility rates (2.01 in 2022, below the replacement level of 2.10), leading to fewer children in elementary and secondary education.

What challenges are associated with enrollment?

Economic Strain Due to a Shrinking Workforce: A declining working-age population may slow economic growth, limiting India’s ability to generate sufficient income to support an aging society. Example: India’s fertility rate dropped to 2.01 in 2022, below the replacement level of 2.1, indicating a future decline in the labor force.
Educational System Under Pressure: Falling elementary-level enrollment has reduced demand for schools and teachers, potentially affecting education quality. Meanwhile, senior secondary enrollment increased by 3.63 million (15.46%) over the past decade, putting strain on higher education infrastructure. Example: Elementary school enrollment fell by 18.7 million (13.45%) in the last decade, signaling a demographic shift impacting resource allocation.
Growing Educational and Economic Inequality: Government and aided schools, which serve marginalized communities, saw a sharp enrollment decline of 19.89 million (13.8%) and 4.95 million (16.41%), respectively, while private schools saw a slight increase, widening the education gap. Example: Enrollment in private unaided schools rose by 1.61 million (2.03%), indicating a shift toward private education that is less accessible to low-income groups.

How might this impact society?

Shrinking Workforce & Economic Slowdown: Fewer young people entering the job market may lead to labor shortages, reducing economic productivity. Example: Japan and South Korea struggle with aging populations, leading to workforce gaps and slower growth.
Increased Social Inequality: Government school enrollment decline disproportionately affects marginalized communities, widening the education gap. Example: In rural India, fewer children in government schools may limit upward mobility and economic opportunities.
Strain on Higher Education & Skill Shortages: A decline in secondary-level enrollment can result in fewer skilled workers, affecting industries reliant on educated labor. Example: IT and manufacturing sectors may face talent shortages, impacting India’s competitiveness in global markets.
Higher Dependency Ratio & Welfare Burden: With an aging population and fewer workers, the burden on healthcare and pension systems will rise. Example: Countries like Italy and Germany face financial stress due to increased elderly care costs.
Changing Consumer & Housing Markets: Lower youth populations may reduce demand for housing, schooling, and consumer goods, shifting economic dynamics. Example: Fewer school-age children may lead to school closures, teacher unemployment, and real estate downturns in urban centers.

What are the steps taken by the Indian Government?

National Education Policy (NEP) 2020: Aims to transform the education system by ensuring universal access, equity, and quality learning from early childhood to higher education.
- Targets a 100% Gross Enrolment Ratio (GER) in school education by 2030 and emphasizes vocational training to meet future workforce demands.
Samagra Shiksha Abhiyan: A centrally sponsored initiative that integrates existing education programs to provide inclusive and equitable education from pre-school to senior secondary levels.
- Focuses on reducing gender and social disparities, enhancing infrastructure, and promoting digital learning.
Skill India Mission: Aim to train over 400 million people in industry-relevant skills to support economic growth.
- Includes Pradhan Mantri Kaushal Vikas Yojana (PMKVY) for skill training and certification to boost employability.

Way forward:

Enhancing Educational Access & Quality: Need to strengthen government school infrastructure, improve teacher training, and expand digital learning to bridge educational disparities and ensure skill readiness.
Strategic Workforce & Economic Planning: Align skill development programs with future industry needs, promote labor-intensive sectors, and implement policies to balance workforce participation and aging demographics.

Mains PYQ:

Q National Education Policy 2020 isin conformity with the Sustainable Development Goal-4 (2030). It intends to restructure and reorient education system in India. Critically examine the statement.(UPSC IAS/2020)

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