Now, more than half of the 900 million Indians of legal working age — roughly the population of the US and Russia combined — don’t want a job, according to the CMIE.

New data from the Centre for Monitoring Indian Economy Pvt, a private research firm in Mumbai, suggests that a growing number of people are no longer even looking for work.

Now, more than half of the 900 million Indians of legal working age — roughly the population of the US and Russia combined — don’t want a job, according to the CMIE.

Kunal Kundu, an economist with Societe Generale GSC Pvt in Bengaluru says, “The large share of discouraged workers suggests that India is unlikely to reap the dividend that its young population has to offer.”

Mr. Kunal further said that India would likely remain in a middle-income trap, with the K-shaped growth path further fueling inequality.

According to The Hindustan Times report, with about two-thirds of the population between the ages of 15 and 64, competition for anything beyond menial labour is fierce. Stable positions in the government routinely draw millions of applications every year and entrance to top engineering schools is as good as a fish market. To keep pace with a youth bulge, India needs to create at least 90 million new non-farm jobs by 2030, according to a 2020 report by McKinsey Global Institute. That would require an annual GDP growth of 8 per cent to 8.5 per cent.

The newspaper also elaborates saying “If India does not deal with this immediate problem, it could push India off the road to developed-country status. Though the nation has made great strides in liberalizing its economy, drawing in the likes of Apple Inc. and Amazon.com Inc, India’s dependency ratio will start rising soon. Economists worry that the country may miss the window to reap a demographic dividend. Simply put, Indians may become older, but not richer.”