Much has been made of fertiliser minister K Alagiri’s absence from Delhi, from Cabinet meetings...
The report, however, cautioned that the demographic dividend would become a disaster if India does not radically overhaul the labour ecosystem to enhance the productivity of the growing workforce
India can boast of a quarter of the world's workforce by 2025, provided the country harnesses the potential of its young and productive population, a study by staffing firm TeamLease Services said, reports PTI.
A conducive labour situation could also help push the nation's per capita income to $4,100 (around Rs1,87,554 at an exchange rate of Rs45.74 per dollar) by 2025, according to the 'India Labour Report 2009', released in partnership with IIJT Education.
The report, however, stated that a radical reform of the country's labour market ecosystem (including labour demand, labour supply and labour laws) is required for converting individuals into productive people comprising the workforce.
The population of productive people is referred to as the demographic dividend of the country.
"If we harness this dividend by 2025, India will not only have 25% of the world's total workforce, but our per capita income will be $4,100," the report said.
"This would rise to $9,802 in 2040 and $20,836 in 2050. This will finally put poverty in the museum it belongs," it added.
The report cautioned that the demographic dividend would become a disaster if India does not radically overhaul the labour ecosystem to enhance the productivity of the growing workforce.
"India's geography of work is creating a tragedy because jobs are being created in different areas from where people who need them are. But demographics are not destiny and states can bend the curve with a radical overhaul of their education, employability and employment regime," TeamLease Services chairman Manish Sabharwal said.
If reforms are not initiated, it is expected that much of the country's demographic dividend would occur in states with backward labour market ecosystems.
It is expected that between 2010-20, UP, Bihar and MP would see the percentage of their population in the 15-59 age group increase by 40%, though they would only enjoy a 10% rise in income.
During the same period, Maharashtra, Gujarat, TN and Andhra Pradesh would account for 45% of the rise in GDP, but less than 20% of the addition to the total workforce in the 15-59 age group.
The study has also ranked states on the basis of improvement in their labour ecosystems in terms of state efforts in various areas like education and training, infrastructure, governance and the legal/regulatory structure.
"Aggregate labour ecosystem index shows the top three performers are Andhra Pradesh, Karnataka and Maharashtra and each has had significant improvements in index values and ranks," the report stated.
Delhi and Gujarat have been ranked at fourth and fifth place respectively in the Labour Ecosystem rankings.
The report found that almost all states have made significant improvement in the 2000s, including Bihar.
According to the report on the equity mutual funds industry, the concentration of equity AUM in the top cities is fast diminishing. The share of AUM beyond the top ten cities increased rapidly from about 10% in March 2003 to about 26% in March 2010
Mumbai and Delhi together account for about 45% of the total equity mutual fund assets under management (AUM), the Boston Consulting Group (BCG) and Computer Age Management Systems' (CAMS) report on the equity mutual funds industry said, reports PTI.
India's mutual fund industry's average assets under management (AUM) is pegged at Rs8,05,239 crore in June 2010.
According to the report, the concentration of equity AUM in the top cities is fast diminishing. The share of AUM beyond the top ten cities increased rapidly from about 10% in March 2003 to about 26% in March 2010. Mumbai and Delhi together account for about 45% of total equity AUM, and the top 30 cities account for about 90% of total equity AUM, the report said.
"We believe that the Indian equity mutual funds industry is likely to continue growing rapidly for the next five to six years given many favourable factors such as
under-penetration, high economic growth rate, tax benefits such as equity-linked savings schemes, and enhanced presence in household savings products," the report said.
"The mutual fund AUM is expected to grow by 20%-30% over the next five-year period, as compared to 35% growth registered in last five years," BCG's partner & director, Alpesh Shah told reporters in Mumbai.