March 1, 2024

HPAS/Allied Mains 2022 Answer Writing Challenge Day 171 : Model Answer

QUESTION: What is meant by “Demographic Dividend”? Has it benefitted Indian Economy? (4 marks/ 60 words)


Demographic dividend refers to the growth in an economy that is the result of a change in the age structure of a country’s population. The change in age structure is typically brought on by a decline in fertility and mortality rates.

  • The demographic dividend comes as there’s an increase in the working population’s productivity, which boosts per capita income.
  • Demographic dividends can be found with savings, labor supply, human capital, and economic growth.

Effects on Indian Economy

The demographic dividend period began in 2018 when the working age population began to grow larger than its dependent population – children aged 14 years or below and people above 65 years of age. It is expected to last for 37 years until 2055.

There are two prerequisites for reaping India’s Demographic Dividend

First, the ample availability of productive employment and second, the capability to make use of available technologies. Presently, India is lacking on both fronts.
The government initiatives like Skill India and Make in India would help in providing productive employment skills and opportunities for encashing India’s demographic dividend.

Presently, India is in the middle of a demographic transition. This provides a window of opportunity towards faster economic growth and India has already begun to get the dividend.

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