India is regarded as a country with “Demographic Dividend’’. This is due to–
[UPSC Civil Services Exam – 2011 Prelims]
(a) Its high population in the age group below 15 years.
(b) Its high population in the age group of 1564 years.
(c) Its high population in the age group above 65 years.
(d) Its high total population.
Demographic Dividend and India’s Potential for Economic Growth
- Demographic dividend refers to the potential for economic growth resulting from a shift in a population’s age structure, particularly when the working-age population is larger than non-working-age population.
- In India, the working-age population is increasing due to declining birth and death rates, while populations in countries like China, US, and Japan are getting older.
- UN estimates suggest that India’s age dependency ratio, which is the ratio of dependents to the working-age population, will only start rising in 2040, offering a golden opportunity for economic growth.
- However, for India to take advantage of its favourable demographics, it is important to ensure that those in the working-age population are actually working.
- Currently, India’s labour force participation rate is declining, particularly among rural youth and women.
- Empowering India’s labour force with the right skills for the modern economy is crucial for the country to harness the potential of its demographic dividend.
Therefore, option (b) is the correct answer.