This article critically examines the assumptions behind the demographic dividend hypothesis and tries to assess to what extent India is in a position to tap the potential demographic dividend. It argues that the assumptions underlying the demographic dividend hypothesis are weak. The benefits flowing from an increasing proportion of working-age population are not an irrefutable law but depend upon the empirical situation that may differ from country to country. In the conditions prevailing in India, the high optimism about India’s ability to reap the demographic dividend found among the scholars and the official circles seems to be misplaced. The quality of Indian labour force leaves much to be desired in terms of its education, skill base and health status.
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