India has made significant progress over the past four decades in increasing access to higher education for youth, helping them move from farming to industry and service sectors, and reducing gender and caste inequalities. This has been said regarding education in the ‘State of Working India 2026’ report. The report also notes that challenges remain, and that the extent to which this large, increasingly educated and ambitious group of youth is able to find a place in the job market will determine whether India’s ‘demographic dividend’ turns into an economic benefit or will yield little benefit.
The report said India has made considerable progress in increasing access to higher education for its youth population, especially those aged 15 to 29. This has ensured that people leave farming and move towards industry and service sector and also there has been a reduction in gender and caste related inequalities.
How is the report made?
This report is based on government data of the last four decades, through which it has been seen how the participation of youth in education and employment has changed. How well has this ‘demographic dividend’ been utilized and what challenges and opportunities arise while including them in jobs.
Rosa Abraham, lead author of the report and associate professor of economics at Azim Premji University, said that this report shows the journey of a young worker. The journey from studies to finding a job and then to employment. It also explains how this change has developed over the last 40 years. We hope that this report will put forward some basic points, which will help in better understanding the challenges faced during this change and better policies can be made.
The main findings of the report reveal that India’s ‘demographic dividend’ is now nearing its peak. The report says that the share of India’s working age population will start declining after 2030. How fast jobs are created in the future will decide whether India’s ‘demographic dividend’ actually turns into an economic benefit or not.
Education level of youth improved
There has been a significant improvement in the education level of youth in the last four decades, and this improvement has been especially visible among women. India’s ‘tertiary enrollment rate’ is 28 percent, which is almost at par with countries with similar incomes. Regarding the decline in male enrollment in higher education, the report states that it has declined from 38 percent in 2017 to 34 percent by the end of 2024. Many of these youth say that the reason for leaving studies is to help in the household income. The report also suggests that it is very important to recruit teachers and fill the vacant posts, so that there is no adverse effect on the education of students due to lack of resources.