Answer to Question #254715 in Economics for Tuk tuk

Question

According to the report on the status of the elderly in selected states of India - 2011 by United nations population Fund, India has 90 million elderly persons (above 60 years) in 2011. By 2026, this number will increase to 173 million and by 2050 to 315 million i.e.20% of the population is expected to be above 60 years by 2050.This shows that India will move from a young country to an older country over the next few decades. In this reference briefly explain the concept of `Demographic Burden – awaiting India’. Elucidate the feature of demographic dividend on economic growth of a country? Also explain the possible policy prescription that Govt. of India should undertake in order to counter the Demographic Burden.

Answer 1

Once the growth rate of the working-age population will be slower than the growth rate of the total population, the share of the working-age population will start to decline and demographic dividend will turn into demographic burden. Countries like India in the third phase of demographic transition have fertility rates that have declined significantly from previously high levels but have not reached the population-stabilizing “replacement level” of 2.1 children per woman.

The window of demographic dividend opportunity in India is available for five decades from 2005-06 to 2055-56, longer than any other country in the world. India's least economically developed states (Bihar, Uttar Pradesh, Madhya Pradesh and West Bengal) will benefit the most from that demographic dividend.