"India's demographics are mind-boggling: By 2020, it will have 900 million people of working age, and the average age of its citizens will fall to 29. Two years later, it should pass China to become the world's most populous country." This article explains that this immense increase in population could potentially be a good thing, finally unlocking India's vast potential, but only if the students start being better educated and trained. According to the article, currently, only 2% of India's workers have received formal skills training. That compares with 68% in the U.K., 75% in Germany and 96% in South Korea. The Prime Minister, Narendra Modi is doing his best to gather sources to provide better training, however, I don't think they will be able to implement a plan that will rapidly change their growth from 2% to where it would be beneficial. In class, we have also modeled that higher population usually leads to a lower standard of living. I am very interested in seeing what ends up happening to the economy in India as they have a dramatic increase in population.
http://money.cnn.com/2016/04/08/news/economy/india-population-skills-gap-education/index.html?iid=hp-stack-dom
http://money.cnn.com/2016/04/08/news/economy/india-population-skills-gap-education/index.html?iid=hp-stack-dom
Large population could be educated into potential human capital so as to increase productivity and boost economy growth in the future. But meanwhile, the larger population is, the lower capital per worker is, which China has experienced and explains why China government is trying to set birth restriction to limit baby boom. I agree with the article says-"improvement is a lesson to be learned quickly." What India should put in the first place is to increase the education quality, not encouraging its residents to give birth blindly.
ReplyDeleteThis article is interesting because it poses several questions and ties back into various topics that we recently discussed in class. One of the most obvious concepts that I can think of is the Solow growth model that we discussed which explains a nation's growth in the very long run. In class, we discussed the variables that go into the model like depreciation and population growth which have adverse effects on the overall output of a nation since they drag Y down. The model displayed that there are costs as well as benefits associated with huge population growth when comparing China's output to that of the United States, and I wonder if this will also be the case for India in coming years?
ReplyDeleteI agree with Lizheyin in the sense that a large and well-educated population could really boost productivity and economic growth. In addition, I do think that this population increase will benefit India mostly because a mere 2% of their workers have received formal skills training. Thus, it shouldn't be too hard for India to get those numbers up, especially with such an enormous population. It will be very interesting to see if India can fulfill its potential in the years ahead.
ReplyDeleteThis article poses several questions that pertain to how population growth can relate to overall economic output growth. With such a large and majorily unskilled population, it definitely seems that India is poised for some sort of economic boom, dependent upon its ability to educate its aging population.
ReplyDeleteThis article brings an interesting perspective toward the growth of population. Actually in China, as far as I know, Chinese government canceled the single child policy last year in order to solve the problems of population aging. This shows the positive side of population growth--plenty of labor. This is similar to India. Larger population gonna bring more labor, even though maybe cheap labor, but it's a way to attract foreign investment. From that point, large growth of population might bring some problems but I don't think it gonna break Indian Economy.
ReplyDeleteThis article brings up many interesting points when looking at the economy, not only in India but around the world. Looking at India, I agree with the people who brought up how their country's standard of living might decrease from such a large population, which should make India's government install policies within their economy to balance this issue. What is really interesting, is to see how many country's will outsource low skilled jobs to India, because with such a large supply in labor, there will be low wages for those workers which company's will take advantage of. People should definitely be watching, in the next 5-10 years, to see how this population growth will not only effect India's economy, but the global economy.
ReplyDeleteI believe that increasing in labor is not a very good idea to increase the economy. We know that the productivity is affected by labor, capital, and technology factors. If capital is constant, more labors would decrease steady-state, which is not good. China has a lot of labors as well, but their output per person is much lower than that of U.S., if giving China the same amount of capital per person as in U.S., their output per person is still much lower than that of U.S.. The most important thing is increasing the technology factors, so that the output per person could increase, and not like capital, it would not depreciate. Same as in India, I believe that only increase in labor is not enough, they should have more capitals and try to increase their technology factors.
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