What is Demographic Dividend Demographic dividend refers to the growth in an economy that is the resultant effect of a change in the age structure of a country’s population. There are four main areas where a country can find demographic dividends: Savings : During the demographic period, personal savings grow and can be used to stimulate the economy. Labor supply : More workers are added to the labor force, including more women. Human capital : With fewer births, parents are able to allocate more resources per child, leading to better educational and health outcomes. Economic growth : GDP per capita is increased due to a decrease in the dependency ratio. Source - UNFPA [Graphic by Kaveen Kumar Saini/Mint] From this graph, it is clear that the India's working age population (15-59) is around 57% in 2000 and will continue to be above 50% until 2060. So, in this span of 60 years we can have a maximum demographic dividend from our population. The peak of workin...
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