[Economic Survey] Ch13: Demographic Dividend, Education & Skill Development schemes, National Youth Policy 2014

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  1. Prologue
  2. [Act I] Demography related Theories (DT)
    1. DT1: Malthusian theory of population growth
    2. DT2: Demographic transition
    3. DT3: Demographic dividend
  3. [Act II] Education
    1. Census 2011: Literacy ranking
    2. Mid-Day Meal (MDM)
    3. Sarva Sikhsha Abhiyan (SSA)
    4. RMSA & RUSA
    5. Model School scheme (MSS)
    6. Saakshar Bharat (SB)
    7. Education: Budget 2014 New schemes
    8. Economic survey: Education reforms
  4. [Act II] Youth & Skill Development
    1. National youth policy 2014 (NYP)
    2. (NEW) Skill India Program
    3. (NEW) Revamping Employment exchanges
    4. (NEW) Young leaders program
    5. Udan and STAR
  5. Appendix
    1. Pt. Madan Mohan Malviya
    2. Jay Prakash Narayan


Economic Survey Chapter 13, total four sub-parts

  1. UNDP’s Human Development report 2014, poor, women and children [coming soon]
  2. Demographic Dividend: Education, youth, Skill Development[you’re here]
  3. Minorities, SC, ST, PH, Elderly, Sports & Defense [done]
  4. Rural and urban infrastructure [done]

[Act I] Demography related theories (DT)

Cover Economic Survey ch13 Education

Here I’m only giving the outline of the theories. For more details, refer to NCERT Sociology, Class12, Chapter 2, “Demographic structure of Indian Society”.

DT1: Malthusian theory of population growth

  • Food production increases in arithmetic progression while population increases in geometric progression.
  • Therefore, Nature itself tries to establish equilibrium between population vs food supply, using “positive checks”.
Positive checks by nature Preventive checks by humans
  • famine
  • disease
  • delayed marriage
  • celibacy


Malthus Poverty is caused by population growth
Marxists Poverty is caused by unequal distribution of wealth

DT2: Demographic transition

Demographic transition four stages

Stage Birth rate Death Rate Remarks
  • low growth because of famine, wars, diseases
  • short life expectancy
  • India till 1921
  • Agri revolution: famine impact reduced
  • medical research: epidemics contained
  • Life expectancy increases but people yet to change breeding behavior. Result: population explosion
  • Western Europe in late 19th & Early 20th Century.
  • stationary phase
  • nuclear families, modern contraceptives, fertility starts declining
  • India since Census 2011
  • Population begins to “contract / shrink”
  • Highest life expectancy.
  • Most developed countries in this phase.

DT3: Demographic dividend

A country is said to be in “Demographic dividend” phase WHEN

  1. Majority of the population is in working age group
  2. Dependency ratio is minimum i.e. very few persons below 15 and above 64 age.
  3. Age pyramid shows “Bulge” in middle portion.

Observe the age pyramids of India, US, China and Japan for the year 2008 and 2020:

Age Pyramid Demographic dividend India

Bigger “bulge” in middle of Age Pyramid=Demographic Dividend

We can see, by 2020, India will have the youngest population among all four leading economies.

Year Working age population in India
2001 58%
2021 64%

However, to reap the Demographic dividend, we must invest in Health, education and skill Development of the young generation. In the previous part, we learned about the health related issues and schemes. In this part, we shall see education, skill Development.

[Act II] Education

First let’s observe the Census-2011 data


Formula for Literacy rate

भगवान का नाम लेके mugup these formulas


Census 2001, 2011 Literacy Rates

Sakshar Bharat scheme won UNESCO 2013 award for this


Census 2011 Literacy rates Male-Female

फिर से भगवान का नाम लेके mugup approx. total literacy & female literacy figure for Essay & Interview

Census 2011: Literacy ranking

Best Performers
Total Literacy Female Literacy
  1. Kerala (93%)
  2. Lakshadweep (UT)
  3. Mizoram
  4. Tripura
  5. Goa
  1. Kerala
  2. Mizoram
  3. Lakshadweep (UT)
  4. Tripura
  5. Goa

Bottom 5 States/UT in literacy

Worst performers
Total Literacy Female Literacy
  1. Bihar (Lowest)
  2. Arunanchal
  3. Rajasthan
  4. Jharkhand
  5. Andhra
  1. Rajasthan
  2. Bihar
  3. Jharkhand
  4. J & K
  5. UP
  • Now let’s begin with educational schemes
  • Old schemes, organizations covered here: wp.me/p2tsJl-1zM (cost: benefit not that great).
  • In this new article, I’m covering schemes mentioned in Economic survey 2013 or Budget 2014.

Mid-Day Meal (MDM)

WHO? Ministry of Human Resource Development (HRD)
Official name National Programme for Nutritional  Support to Primary Education
  • hot cooked meals
  • Class 1 to 8
  • Government schools, Government aided schools, Madresa, Maqtab etc.

Accountability tools used:

  1. Social audit
  2. Interactive voice response system (IVRS) – automated calls from state HQ to headmasters. They’ve to provide performance data on daily basis, which is automatically tabulated in computer system.

Economic Survey reforms:

  1. Poor quality food affecting child health.
  2. Provide Separate dining rooms to prevent rains and dust.
  3. Teachers should only supervise. At present, they’ve to even cook the food due to staff shortage, as a result, education activity suffers.

Sarva Sikhsha Abhiyan (SSA)

WHO? Ministry of Human Resource Development (HRD)
  • Right to education is implemented via SSA.
  • provides funding for infrastructure (building), services (teachers), free textbook, bags, uniforms, transport, hostel etc.
Budget 2014 Gave ~28,000 crores.

Economic Survey reforms:

  1. Right to Education (RTE) Act mandates a school within 1 km radius of every habitation. but this has led to mushrooming of schools at certain places. Better construct one single bigger school at nearby places, with facility from class 1 to 12.
  2. Regularize temporary teachers. Assess their performance on learning outcome of students.
  3. Fix the shortage of toilets, safe drinking water and safai karmachari.


HRD ministry implements both these schemes
Rashtriya Madhyamik Shiksha Abhiyan Rashtriya Uchhtar Shiksha Abhiyan

  • 2017: achieve above 90% gross enrollment ratio
  • 2020: universal retention i.e. all primary school children should reach high school.
  • Earlier schemes for girls’ hostels, vocational education etc. merged into this schemes.
  • Budget 2014: gave ~5000 cr.
  • Setup 80 new universities by merging existing autonomous colleges.
  • Create support infrastructure for existing universities
  • Indian Bank Association (IBA): provides cheaper loans to all economically weaker section (EWS) students
  • World Bank: provides funding for technical education quality improvement.

Model School scheme (MSS)

WHO? Ministry of Human Resource Development (HRD)
  • Total 6000 new secondary schools, to absorb the primary school passout kids.
  • 3500 model schools in educationally backward blocks (EBB), with help of state governments.
  • 2500 models schools in normal blocks, via PPP funding.

Saakshar Bharat (SB)

WHO? Ministry of Human Resource Development (HRD), 2001
  • Adult education program, main focus on women.
  • Aim: 80% total literacy by 2012; 100% female literacy by 2014.
  • won UNESO King Sejong Literacy Prize 2013
  • Funding given to districts having less than 50% adult literacy
  • Provides ‘3’ R’s (i.e. Reading, Writing & Arithmetic) with skill Development program.

Education: Budget 2014 New schemes

Jaitley did not elaborate the features of these schemes. Hence nothing much to write at the moment.

Pandit Madan Mohan Malviya New Teachers Training Programme. (500 cr)
Jai Prakash Narayan National Centre for Excellence in Humanities in Madhya Pradesh.
  • virtual classrooms and online courses (100 cr)
  • Via Communication Linked Interface for Cultivating Knowledge (CLICK)

New IITs and IIMS under budget 2014

Following Locations not important except for interview-profile based Questions

5 new IIT 5 new IIM
  1. Jammu
  2. Chhattisgarh
  3. Goa
  4. Andhra Pradesh
  5. Kerala
  1. Himachal Pradesh
  2. Punjab
  3. Bihar
  4. Odisha
  5. Maharashtra

Economic survey: Education reforms

India Public Expenditure on Education

Five year Plan “outlays” not converting into “outcomes”

  • From above charts, we can observe that over the years, government Expenditure on children has increased. But it has not translated into “learning outcome” of the children.
  • Therefore, more and more parents opt to send their kids in private schools.
  • Economic survey prescribes two solutions for this:
  1. Zero base budget i.e. scrap down all Programs and start again from zero.
  2. Feedback loop i.e. at the end of the financial year, independent agency should give report card for the performance of HRD ministry. In the next budget, Finance minister should make reforms in the financial allocations and schemes accordingly.

[Act II] Youth & Skill Development

Youth policy + New schemes + Statistics =good points for Essay on demographic dividend.

National youth policy 2014 (NYP)

Different Definitions of Youth
Youth definition age group
NYP 2003 13-35
NYP 2014 15-29
UN 15-24

NYP-2014 will focus on 11 pillars. I’ve consolidated those under five heads. Existing schemes will be streamlined, converged to give maximum focus on following areas:

  1. Education, employment, skill, entrepreneurship
  2. Healthy lifestyle, Sports.
  3. social values, Community engagement, youth engagement
  4. Participation in politics and governance
  5. Inclusion, Social justice.


  • By Ministry of Sports and Youth affairs
  • Government will form a Youth Council, consisting of exceptionally talented young men and women across India. They’ll oversee the implementation of the policy.

(NEW) Skill India Program

  • national multi-skill programme, launched in Budget 2014
  • It’ll give Youth training for employability and entrepreneur skills
  • Even traditional professions like welders, carpenters, cobblers, masons, blacksmiths, weavers etc. will be given training and support.
  • It’ll have convergence with other vocational schemes, to bring maximum output.

(NEW) Revamping Employment exchanges

  • Budget 2014 promised to transform employment exchanges into career centers.
  • They’ll give counseling services, to help the youth pursue career path based on their caliber and aptitude.

(NEW) Young leaders program

  • 100 crore allotted for this. Salient features, provisions yet to be announced.

Udan and STAR

Existing schemes
by Ministry of Home affairs (MHA) by National Skill Development council (NSDC)
provides skill Development training to Jammu-Kashmir youth with help of NSDC and PPP
  1. National Skill Certification and Monetary Rewards Scheme
  2. You enroll for a vocational course, and after final exam, they give money depending on your grade in the certificate.

Organizations in News

NSDC Skill Ministry
  • National Skill Development council
  • Ownership: 51% private ; 49% Finance Ministry
  • Target: give skill training to 15 Cr. Indians by 2022. Thereby fixing the mismatch in supply-demand of skilled personnel.
  • Runs STAR Scheme, helps MHA in Udaan Scheme.
  • Modi has setup separate ministry for “skill and entrepreneurship”.
  • Presently Minister Sarbananda Sonowal holding charge of two ministries:
  • (Skill Development, Entrepreneurship) + (Youth Affairs and Sports)


Since Budget 2014 schemes named after following Freedom fighter, they automatically become important for Mains General studies paper 1. Therefore, you must have atleast 100 words shortnotes ready.

Malviya and JP

Pt. Madan Mohan Malviya (1861-1946)

  1. Lawyer from Allahabad
  2. Served in provincial and central legislature.
  3. Foundation of Banaras Hindu University (BHU),  “The Leader” newspaper.
  4. Moderate leader of INC, Four times President.
  5. Gandhiji gave him a title “Mahamana”
  6. Opposed separate electorate for Muslims under Lucknow pact of 1916
  7. He participated in 1st round table conference in 1930, later established Congress Nationalist Party to oppose communal award
  8. Popularized the slogan “Satyamev Jayate”
  9. Editor of The Hindustan, Indian Union and Abyudaya.
  10. Budget 2014: Teacher’s training program named after him.

~90 words

Jay Prakash Narayan (1902-1979)

  1. Born in Bihar, Post-graduation from USA
  2. popularly called “LokNayak”
  3. Participated in both Non Cooperation movement (NCM), Civil disobedience movement (CDM), and went to jail.
  4. Participated in Vinoba’s Sarvodaya and Bhoodan movement.
  5. Wanted abolition of Zamindari and nationalization of heavy industries.
  6. Founded All India socialist party before independence
  7. Key role in settingup Janta party after independence.
  8. 1975: Allahabad HC declared Indira’s election null and Void. JP demanded her resignation, but she imposed National emergency and got him arrested.
  9. Awarded Magsaysay and Bharat Ratna.
  10. Budget 2014: A national institute for humanities to be setup in MP, bearing his name.

~100 words

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50 Comments on “[Economic Survey] Ch13: Demographic Dividend, Education & Skill Development schemes, National Youth Policy 2014”

  1. sir till when will u publish articles on economic survey 2015

  2. Sir, when will you upload articles on Economic Survey – 2015?

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