Demographic Crisis in CHINA

The mainland China, has witnessed a sluggish growth in population. The growth has been +5.38% in the
last decade. The fertility rate in China is 1.3 child per women which is a lot less than the stability rate of
2.1. As of today India has 2/3rd of its population under the age 35. The average age of India is 28.1.
According to a 2016 study, India has over 50 Cr people within the age bracket of 20-50. By 2030 it is
expected that India will have a dependency ratio of 0.4.

When compared to other possible alternatives to China, India becomes the obvious choice on the basis
of the demographic dividend that it posses. As the workforce is in huge number when compared to any
other company it provides India flexibility to reduce corporate taxes which is not true when compared
to any other alternative. It is quite obvious that India is going to get massive returns, the question then
lies who all are going to be a part of this journey today and reap massive rewards tomorrow.

Country Name 0-14 15-64 64+ Workforce in Average age

absolute
numbers(15-
64)*
India 27.8% 66.2% 6.0% 91,35,62,903 28.1
Bangladesh 28.4% 66.5% 5.1% 10,95,18,439 26.7
Vietnam 23.1% 69.8% 7.2% 6,79,42,328 30.5
Indonesia 27.4% 67.3% 5.3% 18,40,81,393 30.2

Notes:- The values are corresponding of 2017 data

* The absolute value has been obtained after calculation and been rounded off.

1. https://www.reuters.com/world/china/china-2020-census-shows-slowest-population-growth-
since-1-child-policy-2021-05-11/
2. https://data.worldbank.org/indicator/SP.POP.0014.TO.ZS?name_desc=false&view=chart
3. https://data.worldbank.org/indicator/SP.POP.1564.TO.ZS
4. https://www.worldometers.info/world-population/population-by-country/
5. https://www.investopedia.com/trading/chinese-devaluation-yuan/
6.
On 11th August 2015, People’s Bank of China sent shockwaves around the globe when they
devalued Yuan thrice with shaving of 3% of its value.
The first devaluation of Yuan marked the most significant dip, the highest single drop over two
decades
With this were foreign investors could not accurately value the worth of the projects they
invested in.
Stock markets of US, Europe and Latin America fell, in response of devaluation of Yuan, as an
economic slowdown in China was feared.