Abstract
After examining the concept of demographic dividend and in-depth analysis of the changing demographic profile of Indian population in a comparative framework, in this study it has been argued that the transformation of demographic potential into demographic dividend is predicated on the premise that India adopts state sponsored social-economic policy regime for public health and education for its youth to acquire skills which will be required in the twenty-first century and adopts macroeconomic policies which ensures optimal use of human resources. Otherwise demographic dividend will be a myth and a mirage.