India’s Demographic Dividend
Source: Hindustan Times
GS I: Salient features of Indian Society, Diversity of India
Overview
- News in Brief
- What is a Demographic Dividend?
- How India can support its demographic dividend?
Why in the News?
Interim budget announced the formation of “high-powered committee to study India’s population growth.
News in Brief
- In her speech, while presenting the 2024 budget, Finance Minister Nirmala Sitharaman promised a committee to study India’s population growth to ensure that the nation is on target to meet the Viksit Bharat goal by 2047.
- Coming nearly 50 years after the brutal implementation of the population control programme in 1976, this move reflects a shift in public discourse regarding the course of India’s demographic transformation.
- India is and will remain the world’s most populous nation for the foreseeable future.
What is a Demographic Dividend?
- Demographic dividend refers to the economic growth potential that can result from shifts in a population’s age structure.
- It occurs when the proportion of working-age population (typically ages 15-64) is larger than the dependent population (those younger than 15 and older than 64).
- This will leading to increased productivity and economic growth due to a higher ratio of people in the workforce relative to dependents.
- This demographic trend can occur as a result of declining fertility rates and mortality rates.
India’s Demographic Dividend
- India has about 600 million people aged 18 to 35, with 65% under the age of 35.
- India’s demographic dividend is predicted to last at least until 2055-56, peaking around 2041, when the working-age population — aged 20 to 59 — is expected to reach 59%.
Fertility rate dropping
- Though the details of the committee there has been a fast population growth in the country, even though there is no accurate data reflecting such a trend.
- India has not had a Census since 2011.
- The latest Sample Registration System (SRS) report for the year 2020 shows that the total fertility fate (TFR), or the average number of children born to a woman over her lifetime, has actually dropped to 2, from 2.1 in 2019.
- The National Family Health Survey (NFHS)-5 for 2019 to 2021, released in May 2022, stated that the TFR has further declined from 2.2 to 2.
- There are only five outlier States which have a TFR above the replacement level of 2.1 — Bihar (2.98), Meghalaya (2.91), Uttar Pradesh (2.35), Jharkhand (2.26), and Manipur (2.17).
- The population share of the southern States, reduced to 21% in 2011 from 26% in 1951, largely a consequence of a rapid reduction in TFR.
About Population Committee
- Committee to “comprehensively” look into the challenges arising from “fast population growth and demographic changes”.
- The committee will be mandated to make recommendations for addressing these challenges comprehensively in relation to the goal of Vikasit Bharath.
- It will focus on issues such as family planning, maternal and child health, education, employment, and socio-economic development.
- The committee will draw expertise from fields such as demography, public health, economics, sociology, and governance.
How India can support its demographic dividend?
- Education and Skill Development: Invest in education and skill development programs to ensure that the growing young population is equipped with the necessary skills and knowledge for the job market.
- Job Creation: Implement policies and initiatives that promote job creation, particularly in sectors that can absorb a large number of young workers, such as manufacturing, services, and technology.
- Entrepreneurship and Innovation: Encourage entrepreneurship and innovation by providing support to startups and small businesses, fostering a conducive environment for innovation, and offering incentives for entrepreneurship.
- Healthcare: Improve access to healthcare services and invest in public health initiatives to ensure that the population remains healthy and productive.
- Infrastructure Development: Develop infrastructure, including transportation, communication, and basic amenities, to support economic growth and enhance quality of life for citizens.
- Social Safety Nets: Implement social safety nets to protect vulnerable populations and ensure that everyone has access to basic necessities and opportunities for upward mobility.
- Women Empowerment: Promote gender equality and empower women by providing access to education, healthcare, and economic opportunities, as women constitute a significant portion of the working-age population.
Way Forward
By addressing these areas, India can harness its demographic dividend and leverage its young population to drive economic growth and development in the country.
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