‘Creating skilled manpower, jobs biggest challenge’

India is among the few countries with a favourable structural growth story, but its biggest challenge will be to create enough skilled manpower and jobs that will spur a "virtuous cycle" of higher growth, says a Macquarie report.

According to the global financial services firm, India will add around 100 million people to its working-age population between now and 2025 and will account for 20 <g data-gr-id="15">per cent</g> of the world's working-age population.

During this time, North America will see an addition of 14 <g data-gr-id="20">million,</g> while for China it would be a decline of 29 million. "In a world of anaemic demand, India promises strong demand growth," Macquarie <g data-gr-id="19">said,</g> but cautioned that the biggest challenge is to create an adequately skilled working-age population, boost productivity and provide employment opportunities.

"We believe an enabling policy environment, structural reforms, and rising productivity levels are key to <g data-gr-id="17">ensure</g> India's transition towards higher sustainable growth," the report said. The three pillars of education, productivity and employment are critical to <g data-gr-id="16">reap</g> the benefits of demographic dividend in India, it added.