India is undergoing a population change. This is evidenced by its current fertility rate of 2.0, median age of 29 years, and dropping dependency ratio (expected to decrease from 65 percent to 54 percent in the coming decade). This opens up the possibility of quicker economic growth. Without effective policies, the demographic shift might devolve into a demographic calamity. The rise in the working-age population may result in increased unemployment, exacerbating economic and social hazards. Although India has begun to reap the dividend, the gain to GDP from demographic transition has been smaller than that of its Asian rivals and is now diminishing. As a result, suitable policy measures must be implemented as soon as possible.

Measures

• Health investments– In India, public expenditure on health has been stable at roughly 1% of GDP. Evidence implies that enhanced health supports increased economic output.
• Making reproductive healthcare services available – We must provide widespread access to high-quality primary education and basic healthcare. According to the National Family Health Survey-5 (2019-21), India has a 9.4 percent unmet demand for family planning, which is significantly high when compared to 3.3 percent in China and 6.6 percent in South Korea. This must be bridged.
• While India is a youthful country, the status and rate of population ageing differ by state. The southern states have advanced in demographic transition and already have a greater percentage of elderly people, whereas the north-central area is India’s manpower reservoir. However, this opens up a plethora of chances for nations to collaborate with one another.

• New governance model that allows for policy coordination among states on a variety of developing population concerns including as migration, ageing, skilling, female workforce participation, and urbanisation. Other nations, such as Singapore, Taiwan, and South Korea, may teach India.
• Education– It acts as a bridge-builder, bridging gender disparities. In India, boys are more likely than girls to be enrolled in secondary and university education. In the Philippines, China, and Thailand, the situation is the opposite.
• Need to expand female labor-force participation—as of 2019, 20.3 percent of women were working or seeking for employment, down from 34.1 percent in 2003-04. Increased female labor-force involvement will most certainly postpone the age of marriage for women, allowing them to engage in the economy more effectively while simultaneously exercising their rights and choices. India must address the disparities across its states.
• An updated National Transfer Accounts (NTA) evaluation is required: India’s per capita consumption pattern is significantly lower than that of the rest of Asia. A youngster in India consumes around 60% of what an adult aged 20 to 64 consumes, but the equivalent ratio in China is 85%. India needs to update its NTA data and create state-specific NTAs on which to rank states.
• India should invest more in children and adolescents—India ranks last in Asia in terms of private and state human capital expenditure. There is a need to invest in nutrition, early childhood education, and assisting students in transitioning from secondary education to universal skilling and entrepreneurship.

By implementing forward-thinking measures, they have already experienced the benefits of their demographic dividend, resulting in remarkable economic development.

How to structure

1. Give an intro about India’s demographic dividend
2. Explain the advantages of it and the significance
3. Suggest measures
4. Conclude

Reference:

1. https://www.thehindu.com/opinion/op-ed/reaping-indias-demographic-dividend/article38262080.ece