By Prof. Atul Khosla,

I grew up hearing that India in ancient times was a ‘Sone ki Chidiya’ – a golden bird – economically and socially way ahead of its peer civilizations and the world’s cradle of knowledge. Most of you would have heard similar stories. Is this true? Were there really rivers of milk flowing in the country? I don’t know of the past, but India in the next 30 years can surely be this “Sone ki Chidiya” we have all dreamt of – an economically rich, happy and powerful nation.

Our unique demographic dividend could push us to this enviable position. But the next 30 years are critical – we could either become the great civilization we were, or we will have to wait another 100 years before this opportunity arises again.

So what is this demographic dividend? Is it really a boon? And what could we do to capture the opportunity? And how does research fit into the solution?

What is the demographic dividend?

Demographic dividend is the economic growth potential that results from a young productive population. More working people means more economic growth. Japan from 1964 – 2004 was among the first major economies of the world to experience rapid growth from a similar demographic dividend.

India is young. Our average age is under 30 years. Compare this to China at 38, Western Europe at 45 and Japan at 49. There are more working-age Indians (age 15 to 65), than Indians above the age of 65.

Is this our opportunity? Just like Japan, can India move through rapid industrialization and development? The answer is yes, but this demographic dividend advantage for India is expected to last only for the next thirty years. Post 2055, the curves will change, and India will become an aging nation.

Is demographic dividend really a boon?

India’s demographic dividend is a two-edged sword. It can have a huge positive impact if our growing working-age population finds “high value” employment, and not just jobs. But India’s experience in this aspect is rather poor. We continue to have high unemployment. Many of our highly trained engineers and university graduates continue to be unemployable.

Can research help capture the demographic dividend?

High-end jobs will not come from low-end activities. India will have to move up the value chain and rapidly transition from a production and agriculture based economy to a research and innovation led economy. The task is huge but not impossible.

Luck is by India’s side. A new opportunity has emerged. A new revolution has started – the digital revolution. The rules of the digital world are different from the industrial world. And this is India’s opportunity – to build a global leadership position, and in the process, create millions of new high-end jobs. In hi-tech, agriculture, healthcare, data analytics and financial services among others. However, the United States with trillion dollar companies such as Amazon, Google and Apple is already winning this race. China and South Korea are a close second. Can India catch up?

Research can help India leapfrog this race and become a world beater. Investments in Universities and Higher education Institutions drives research and innovation. India has a great starting point. We now need to transform our Universities as envisaged by the NEP and bring research into our undergraduate education.

Research will help make India one of the greatest digital economies of the world. Or like the industrial revolution, will India miss this opportunity again? Only time will tell!

(The author is Founder & Vice- Chancellor of Shoolini University. Views expressed are personal and do not reflect the official position or policy of the Financial Express Online.)