India recently became the world’s most populous country, with an estimated population of over 1.4 billion people. It is a young and rapidly growing population, with significant implications for the country’s economic future. There is a debate about whether India is headed towards a demographic dividend or a demographic liability. In this article, we will examine both sides of the argument and the factors that will influence India’s demographic future.
Sourced from World Economic Forum (Image: REUTERS)
Demographic Dividend
A demographic dividend occurs when a country’s working-age population is larger than its non-working-age population. This demographic shift can boost economic growth, as more people are contributing to the workforce and fewer people are dependent on others for support. Additionally, a young and growing population can lead to a larger market for goods and services, as well as innovation and entrepreneurship.
India has a relatively young population, with an average age of 28. According to the United Nations, India’s working-age population will reach 1 billion by 2050. If utilized properly, this has the potential to be a significant driver of economic growth.
Demographic Liability
On the other hand, a demographic liability occurs when a country’s non-working-age population is larger than its working-age population. This can lead to higher social welfare costs, a slower economy, and other challenges, such as a shortage of workers to care for the elderly.
India is also grappling with several challenges that could impede its ability to achieve a demographic dividend. These challenges include high levels of poverty and inequality, poor access to education and healthcare in some areas, and a lack of employment opportunities in certain sectors. Additionally, India’s large informal sector and low levels of female workforce participation are also barriers to economic growth.
Conclusion
In conclusion, India has the potential to achieve a demographic dividend, but it faces several challenges that must be addressed. By taking decisive action to promote inclusive growth and development which entails making investments in healthcare and education, encouraging inclusive growth and the creation of jobs, and enhancing infrastructure and basic service access in rural areas.
Additionally, the government must seek to address the underlying issues that contribute to poverty and inequality, such as prejudice and social isolation. India can harness the potential of its young and growing population and achieve sustained economic growth in the years to come. A demographic dividend is not guaranteed, but it is within reach if the government takes the right steps to support its people and promote a thriving broad economic growth .