Why India's growing population is both a blessing and curse

With projections indicating a rise to 1.5 billion by 2030, the country boasts the world’s largest youth population, which is a potential engine of economic growth.

But this population surge is a double-edged sword that brings with it both opportunities and great challenges.

India’s urban centres, such as Mumbai, are the bedrock of its economic transformation. With over 28,000 people per square kilometre, Mumbai exemplifies the density and dynamism that define India's cities.

According to government forecasts, urban areas are expected to contribute 75% to India’s GDP by 2036, and urban population figures could swell to 600 million.

This urban explosion presents an immense opportunity for India to fuel manufacturing, digital services, logistics, and construction. According to K.T. Ravindran, an urban planning expert, such growth must be met with targeted investments in infrastructure.

"The focus should move towards food security, water security, energy security, and security from waste management," he told CGTN.

But that transformation is already colliding with real-world pressures.

India's unemployment rate climbed to 5.6% in May 2025, with a notable rise among young people.

Millions migrate to cities in search of work, often fleeing rural distress and climate-induced displacement, only to find themselves stuck in low-wage, low-skill jobs in sectors like e-commerce delivery or informal construction.

"They have to be skills which are required by industries… Otherwise, disparity will remain," warns Madan Sabnavis, Chief Economist at Bank of Baroda.

India’s educational and skilling systems have struggled to keep up with the pace of change. While programmes exist to boost employability, many lack alignment with industry needs.

The result? A growing class of underemployed youth and a missing middle in the labour market.