India’s policymakers have long flaunted the massive economic benefits that the country will reap from its huge youth population.

But while the country, with a median age of a little below 30 years, is still relatively young today, it looks all set to age quite rapidly in the coming decades, thanks primarily to a rapid decline in fertility levels.

An ageing population, many economists believe, could turn out to mean serious economic trouble unless India manages to grow its economy at a rapid pace in the coming decades.

Significance of India’s Ageing Population

India’s ageing population holds significant implications for the country’s economy and social fabric. It is crucial for policymakers and citizens to understand the potential challenges and opportunities that come with this demographic shift.

Key Features and Objectives

The main feature of India’s ageing population is the rapid decline in fertility rates and an increase in life expectancy. This shift poses several objectives for the government:

• Providing adequate social security and healthcare for the elderly population.
• Creating employment opportunities for older workers and harnessing their experience and skills.
• Implementing policies to address the changing needs and aspirations of an ageing population.

Effects of Ageing Population on India’s Economy

The effects of an ageing population on India’s economy can be both positive and negative:

• Positive: The older population can contribute to the economy by engaging in productive work and entrepreneurship.
• Negative: The increasing demand for healthcare, pensions, and social security can strain the government’s finances and put pressure on the working-age population to support the elderly.

Pros and Cons

Like any demographic shift, India’s ageing population has its pros and cons:

• Pros: Increased life expectancy indicates improved healthcare facilities and better living conditions.
• Cons: The burden on the working-age population to support the growing elderly population may lead to economic challenges.

Fun Fact

India’s elderly population is projected to grow at a rapid 41% between 2021 and 2031, and by 2050, approximately one in every five Indians will be over 60 years old. This demographic transformation highlights the need for proactive measures to address the needs and expectations of the ageing population.