QUE : Comment on the concept of ‘demographic dividend’ in India.

 Demographic dividend: The potential economic growth due to the change in the age structure of the population i.e. demographic dividend, which is mainly the working class (age 15 to 64) is more than the non-working class (age 14 and above).

•  Due to the low birth rate every year, the working class of the country has increased on which children are less dependent.
  
•  Economic growth is possible through cooperation among the working class of the people, socio-economic investment and appropriate policies in health, education, governance.
  
•  Demographic dividend in India
  
•  India is the country with the youngest population. In 2020, the median age in India was estimated to be 28.43 years, compared to 38.5 in China and the US and 45 and 49 in Western Europe and Japan respectively.

•  India has recorded a further increase in its working population since 2018, which will continue till 2055 or for the next 37 years.
  
•  The transition occurs due to a decline in the total fertility rate (number of births per woman) after the increase in life expectancy has stabilized.
  
•  A study by the United Nations Population Fund has brought to light two facts on the demographic dividend in India.
  
• The opportunity for demographic dividend in India is available for five decades from 2005-06 to 2055-56. Which is longer than any other country in the world.
  
• The demographic window is available at different times in different states due to the differential behavior of population parameters.

• Benefits of Demographic Dividend

•  Higher working age population and lower dependent population lead to better economic growth due to increased economic activities which will be linked as follows.
  
•  Increase in labor force which increases the output of the economy.
  
•  Financial investments made on children prevent the demographic dividend from being used to build physical and human infrastructure.
  
•  Involvement of women with low fertility in the workforce
  
•  Increase in the saving rate as the working class saves.
  
•  Shift towards a middle class society
  
•  Demographic dividend has historically contributed 15% to the overall growth in developed economies.
  
•  High rate of job seekers has increased economic growth due to industrialization and urbanization.
  
•  Increase in the labor force, as well as helps in effective policy making.
  
•  Challenges associated with the demographic dividend in India
  

•  Asymmetric demographics: The growth in the working-age population in India is estimated to be concentrated in some of the poorest states. And the demographic dividend will be achieved only if India can create gainful employment opportunities for these people.
  
•  The problem of disproportionate gender ratio: According to data from the International Labour Organization and the World Bank, the female labor force participation rate in India has declined from 34.8 percent in 1990 to 27 percent in 2013. India cannot hope to reap the demographic dividend without the involvement of women.

•  Informal sector: Another obstacle to realizing the benefits of India’s demographic transition is the country’s informal economy. About 216 million people work in agriculture, where they not only earn low wages but also face limited social protection.
  
•  In addition, developing countries like India must take steps to address disadvantages such as lack of skills, growing unemployment, and declining human development indicators.
  

                              Finally, it can be concluded that the demographic dividend will play a prominent role in making India, emerging from the youth, a more prosperous and developed country.