India's Future Workforce: A Strategic Opportunity for Asia-Pacific

India is set to maintain a substantial workforce until nearly 2050, though neighboring countries like China and Japan face declining working-age populations. Proactive regional cooperation and labor mobility policies are vital for sustaining economic growth across Asia and the Pacific amid shifting demographic trends.

India is projected to maintain a significant workforce through nearly 2050, while countries like China and Japan grapple with dwindling working-age populations, according to a report from the Asian Development Bank. Statista's data indicates that India's working-age population constituted over 60% of its total in 2011 and will continue to grow until 2031, peaking at 65.1%. However, this percentage will see a slight decrease to 64.9% by 2036.

This demographic shift highlights the critical need for labor mobility and regional cooperation to address workforce imbalances and spur economic growth in Asia and the Pacific. The ADB posits that effective management of demographic deficits depends on proactive regional migration policies and substantial investments in human capital.

For the past five decades, many countries in the region have leveraged their demographic dividends to thrive, focusing on infrastructure investments such as transportation, energy, and telecommunications. Turning demographic deficits into dividends now requires a strategic pivot toward human capital investment and enhanced labor mobility.

According to UN data, Asia has surpassed its peak demographic dividend, with a significant decline in the number of working-age people looming for several nations. This underscores the urgency for tailored policies to maximize the potential of the existing workforce, including increased female labor force participation and broader access to higher education for talented individuals, irrespective of socioeconomic background.

Moreover, a regional migration strategy can help balance workforce surpluses and deficits. Flexible migration policies within Asia can capitalize on demographic disparities, facilitating job opportunities for workers from countries with a demographic dividend and filling employment gaps in deficit regions. Such an approach would also boost trade and investment ties, foster innovation, and increase remittances. Although migration from Asia and the Pacific currently targets the Gulf states, a regional approach similar to the strategies adopted by the United Arab Emirates could provide more localized opportunities.

Organizations like ASEAN can enhance this migration strategy by standardizing licensing and training requirements and establishing skills partnerships between origin and destination countries. As Asia and the Pacific have historically matched population growth with productivity-enhancing infrastructure investments, facing aging populations now mandates an equal focus on human capital and cross-border labor mobility. (ANI)

(With inputs from agencies.)