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