‘ECONVISTA 2022’

Lady Shri Ram College for Women

India’s Demographic Dividend:

Reviewing Economic Outlook in a Post- Pandemic World

Contemporary discussions are abuzz with how India might emerge as the next big economic
powerhouse after China. Any argument around this does not fail to mention the prospect of India
capitalising on its “demographic dividend”. According to the United Nations Population Fund
(UNFPA), demographic dividend is “the economic growth potential that can result from shifts in
a population’s age structure, mainly when the share of the working-age population (15 to 64) is
larger than the non-working-age share of the population (14 and younger, and 65 and older)” .

There's two way causality between the demographic structure and pace of economic development
in an economy. The demographic change offers significant opportunities for economic
transformation in a post 1991 liberal India. However, the unique nature of this demographic
change presents its own challenges.

A plethora of Asian economies- including Japan, South Korea, China and Singapore have all had
their share of gains in the rising tide of a growing young population. This was made possible by
magnanimous investments in education, health, upskilling as well as the creation of jobs and
investment in growth-oriented sectors. Is this something that the Indian growth story can replicate
given the derailing impact of Covid-19?

It is expected that India’s demographic dividend will last upto the 2050s. However, the real
question is not so much about when it would happen as about whether this dividend is a boon or
a bane?

According to the Economic Survey (2018), reaping the demographic dividend needs a vision, a
long-term plan, and bold decisions. Proactive policies of the government will play an important
role in realising the benefits of demographic dividend. Can India stand up to this opportunity and
invest sufficiently enough in human capital to realise this dividend? Do we have the capability to
deal with both the challenges of a young-unemployed workforce as well as provide economic
cushioning for the ageing population? Will an “Atma-Nirbhar” Bharat pave the way for
developments, both technological and institutional, that will help navigate these challenges?

At ECONVISTA 2022, we intend to engage and introspect upon such issues. Let’s come together
to discuss, debate and deliberate upon the economic outlook for India in a post-pandemic world- a
world where India realises it’s demographic dividend.