Munich Personal RePEc Archive

Demographic dividend: Challenges and opportunities for India

Swami, Madhubala (2016): Demographic dividend: Challenges and opportunities for India. Published in: Management Guru: Journal of Management Research , Vol. 4, No. 11 (December 2016): pp. 348-351.


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Demographic dividend is the result of demographic transition which brings about a change in the age structure of the population of a country. After going through phases of high birth rate and high death rate in the 1920s, India entered into a phase of declining fertility and mortality rate in the eighties. India is one of the few countries in the world having a high proportion of its population in the age group of15-59. While a large proportion of young population increases consumption and provides impetus to production and GDP of the country, high savings and investment by the elderly enhances economic growth. However, demographic dividend poses various challenges for India where social infrastructure is still lagging behind. India needs to allocate sufficient resources to improve educational and healthcare infrastructure to meet the requirements of the young and the elderly. Skill development of the young population through vocational and formal education and creation of adequate jobs are the stark realities which India faces at present and has to address with urgency to reap the benefits of demographic dividend. This paper attempts to delve into issues related to demographic transition of India and challenges and opportunities related to this favourable transition.

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