Demographic Dividend Of India

The demographic dividend is the period in which a country or region experiences a large labour force growth relative to the available sources of natural and human capital that may be invested in education and training. This can be characterised by a high proportion of youth and low birth rates, often seen in developing countries. The population’s age structure becomes younger, and the number of working-age adults increases, creating a pool of potential workers to draw from.

The demographic dividend of India

“India’s demographic dividend” is a concept in demography according to which the period of low fertility in a population, usually characterised by high life expectancy and high infant mortality, will generate rapid population growth. This period is followed by a demographic transition, in which the fertility rate falls below the replacement level, and a period of high fertility begins.

The demographic dividend of India is a term that has been used to convey the potential advantages of population growth in the developing world. According to this perspective, India is likely to enjoy a demographic dividend as the number of people reaching working age increases over the next several decades, allowing it to achieve a high per capita income without exporting its capital or labour.

Instances of the demographic dividend in India

In India, this has happened in the last two decades and has led to an increase in the number of literate people and has increased the rate of poverty and underdevelopment in the country.

The demographic dividend is a very powerful phenomenon in India. It is the period of time when the population of a region starts to grow faster than the growth rate of the economy. In India, the dividend was first identified in the 1950s and 1960s. In this period, India underwent a demographic transition from a largely rural population to a more urban one, with this change in population structure leading to a rapid increase in the numbers of economically productive people and contributing to the country’s economic growth.

The demographic dividend which India experienced in 1947–8 is a well-known fact. The population of India increased from about 500 million in 1947 to 1.2 billion in 2007.

The population of India aged 20-59 years is expected to cross 100 crores in 2041, according to the Economic Survey 2018-19. As an outcome, India will be the world’s third-largest economy by 2041. The share of the working-age population is expected to be more than half of India’s total population by 2041.

Advantages of the demographic dividend of India

1. India enjoys a demographic dividend, where the young population can bring about social, economic, and political development. 
2. The demographic dividend has allowed the government to focus on education, healthcare, and infrastructure.
3. In terms of human development, India has made great strides in growth in life expectancy and literacy over the last five decades.
4.  The increase in the labour force leads to an increase in economic activity.
5. A large labour supply increases demand for services like education, health, etc.
6. A large proportion of young people in the workforce increases the need for skilled labour and investment in training programmes.
7. The decrease in the proportion of the working-age population helps improve labour productivity, as older people are not as efficient as younger ones.

Disadvantages of the demographic dividend

1. The population growth is becoming increasingly polarised between the rural and urban regions. 
2. The lack of an advanced education system and a large number of unemployed individuals in the rural areas is leading to the rise of crime, illiteracy, and poverty.

Conclusion

The demographic dividend refers to the period in a country’s history characterised by unusually high fertility rates, low mortality rates, and large populations. It is a time when the fertility rate is above replacement level, and the population growth is rapid. The demographic dividend makes India a significant example to many developing nations. This is a period of time when a country has a relatively low population and can invest in infrastructure, education, and the like. The demographic dividend has existed since India’s first general election in 1952. However, when the economy began to grow after the 1991 economic reforms, the population began to grow at a much faster rate, eventually leading to a population crisis in India.