India’s largest lender the State Bank of India (SBI), released a report stating that India needs to become a developed nation in one decade, or suffer the negative consequences of having a huge demographic dividend.
The report also states that India may never enter into a state of development if it doesn’t act immediately. They calculate that India has a 10 year time span to move into the developed country label or it may be trapped as developing nation in perpetuity.
It further goes on to state that more focus on youth and education investment by the government will help to achieve this goal. Currently, India’s demographic surplus is the main reason for economic growth, but there are already warning signs that by the year 2030 it may lead to problematic issues. For instance, the sluggishness of the population growth in last 20 years, as well as the unpredictability of the fertility rate across India.
The coastal state of Karnataka is one of these cases of low birth rate, resulting in an increase of people over the age of 60 to 9.5 percent in 2011. A lower population growth, increase the wealth of certain demographics of the population who then move from government services to private services, like government schools to private schools, which has an adverse effect of lowering the quality of government schools due to lack of funding. For this reason, calls for more educational funding is need in India for the population that cannot afford to migrate services.