Declining Utilization of Workforce in India

Proper utilization of workforce ensures the development of all the nations of the world. It is the resource which guarantees the utilization of different factors of production and gives a boost to growth and development of nations. It is important for all the nations of the world to take care of its workforce and its employability, if they wish to develop their economy in long as well as short run. India has become the youngest nation of the world and possesses the demographic dividend. But, the demographic dividend of India is not being utilized properly. India does not possess the required amount of capital formation to engage the increase in the workforce of the Indian economy. The workforce participation rate in India is lower than in most countries in the world. If taken in absolute terms also, it is lowest in the present decade as well. Almost 50 percent of the population of India does not contribute anything to the economic development and is dependent on the rest of the population which is employed. If this trend of decline in workforce, participation rate continues for some more years than the Indian economy may have to face serious consequences. It is with this imperative that the present paper highlights the present and past trends of workforce participation rate of India and presents the true picture of the situation.