India's biggest challenge will be to utilise its demographic dividend as the average age of an Indian by 2020 would be 29 years, the Survey has said.
There would be about 63.5 million new entrants to the working age group between 2011 and 2016.
"This demographic dividend provides India great opportunities but it also poses a great challenge," the Survey said, while pointing out that labour force expansion in the last six years has been slowest in the recent past.
The Survey said India was still in the medium human development category with countries such as China, Indonesia and South Africa having better overall ranking.
Although the government has increased total expenditure in social service sector from 21.6% in 2006-07 to 24.1% 2011-12 because of higher allocation to health and education, more needed to be done, it said.
It also called for better implementation of social sector schemes to improve governance efficiency and hoped that the Unique Identification Authority of India will result in better monitorable outcomes.