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What you can give to the

corporate world
21st century: Asia’s Century
Power shift from Atlantic to Asia

Emerging New World Order

Indiaon strategic Radar of


Developed and Developing world
India’s Advantage
 Demographic
 Societal Building Block
 English language
 Affinity to maths
 Credible IT image
 Steady Growth Trajectory
 Strong will, enthusiasm and spirituality that
gives honesty & commitment to the workforce.
Workforce shortage in
developed countries by 2020

Maximum projected shortage

 United States– 6.1mn


 Canada – 1.7 mn
 Spain – 2 mn
 Japan – 2.8 mn
Over 50% shortage predicted in English
speaking countries.
Median age by 2025
 USA – 39.3 years
 Canada – 42.9 years
 Mexico – 32.5 years
 Europe – 45.4 yrs
 France – 43.3 yrs
 Italy – 50.7 yrs
 UK 44.5 yrs
 Russia – 43.8 yrs
 Japan – 50 yrs
 China -- 39 yrs
 India -- 31.3 yrs
India – youngest country of the
world
 Average age today 23 years while
that of Japan 41 years.

 Demographic Dividend:
YOUTHFULNESS
Future
 In 2025, out of every 100 workers in
India 12.1 will be above 65 yrs as
compared to 49 in Japan.

 In next 10 years, India will create 47


million workforce to lead the world.
100 million at present are in schools.
Reality check
 1080 mn population with a 482 mn
workforce. Unemployment at 9.2%
 By 2020 – 63 mn unemployed, more
than entire population of UK, France
& Italy!
 90% of workforce in the unorganized
sector.
 Low skill levels among women
causing rise in unemployment rate
for women.
India’s labour Market
 Labour force participation is low 560
million of a 1 billion population
 Organized employment has been stagnant
at 40 million since last 30 years!
 Unorganized employment is the bulk of
labour force (350 million)
 Given the employment elasticity of 0.15
and ICOR(3.75), the 8 million new jobs
needed to freeze unemployment, requires
GDP growth of 13% and investment of $
130 billion.
Problems
 Low overall productivity due to lack of
supportive nationwide infrastructure
 Large number of people become
apprentices in the unorganized sector to
pick up saleable skills.
 Skills generated in the unorganised sector
have no formal recognition! (people with
manual work in India has higher happiness
index)
 Labour market opportunities for even the
most skilled labour are restricted to local
market
An idea
Alternatively viewed, this means that India
has the unique opportunity to:
 Complement what an ageing world needs

the most- productive workers


 Provide investment opportunities for

ageing countries for sustained return on


investment (liberal economic policies,
stable political environment, cheap
productive sources and vast market at
present)
Vision
 J.F Kennedy said, “We must reach
the moon” and we reached

 Mahatma Gandhi said,


“Independence without violence”. We
achieved it.
VISION

Today’s slogan:

“India - The Skills Capital of the


World”
New world new priority

There was a time to die for the nation ,


now it is the time to live for the
nation.
Momentum
 India has the potential to become the skill
capital of the world (It provided “0” to the
world leading to today's global technology
but missed the mid course correction!)
 Labour force is skilling fast with vast and
rapid increase of education opportunities.
 Many things need to be done for India’s
rapid transition out of poverty and under-
development specially in rural India.
Propositions
In addition to white and blue collar skills,
India needs to recognize:

 Its vast pool of knowledge workers

skilled workers at the grass root level in


unorganized sector.
Government needs to provide recognition to
the workforce in unorganized sector to
make them employable by the MNCs
entering India.
India needs thought shift
 From employment to employability (By rapidly
making the provision of ‘industry oriented
practical skill education’ rather than current focus
on traditional academic degrees)

 Giving school education system a global air.

 Urgent need for genuine focus and clear


strategies for providing infrastructure in rural and
semi-urban areas through private public
participation
The journey has just begun

THANK YOU
CMS – GITAM – 19th Aug 2008