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- According to studies, India has entered a 37 year period of demographic dividend since 2018.
- The period of demographic dividend will last till 2055. This has been created as India’s working-age population (people between 15 and 64 years of age) has grown larger than the dependant population (children aged 14 or below plus people above 65 years of age)
- United Nations Population Fund (UNFPA) defines demographic dividend as the growth potential that results from shifts in a population’s age structure. The transition happens largely because of a decrease in the Total fertility rate (TFR) (the number of births per woman), after the increase in life expectancy gets stabilised.
- However, it is important to note that Demographic dividend provided by the increasing share of working age adults is a temporary phase. To reap the benefits of demographic dividend, India should invest in the education and health of the workforce and provide employment opportunities to the youth.
- Examples of countries who successfully reaped the benefits of demographic dividend and experienced rapid growth because of changing population structure include Japan, China and Singapore.
