Submitted by:-
Manohar kumar

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DEMOGRAPHIC DIVIDEND
What is Demographic dividend?
• It is a rise in the rate of economic growth due to a rising share of working age people in a population
• the fertility rate falls and the youth dependency rate declines
• output per capita rises
• Less ‘mouths to feed’
• Mechanisms to deliver Demographic dividend
• Labour supply
• Savings
• Human capital
• Labour supply
• The demographic transition affects labour supply through:
a) size of the labour force,
b) increase in the labour force participation including women
c) labour productivity due to good facilities
• Depends on the policies by government
Savings
• Working-age adults tend to save more
• Savings also increases when children of high fertility period moves in their 40s when their children are on their own
• Personal savings grow and serve as a partial resource for industrial investments
Human capital
• Having fewer children enhances the health of women and thus they contribute more energetically to society
• Parents are under less strain to provide for many children
• Investment on better foods, infants, including girls increases
Demographic projections for india
Census of india
Age group 2001 2011 2021 2026
0-14 35.5 29 25.1 23.4
15-59 57.8 62.7 64.0 64.3
60+ 6.9 8.2 10.7 12.5
All numbers are in percent of total population
Source:imfexternal/pubs/ft/wp/2011/wp1138.pdf
India's Coming Demographic Dividend
(in percent)
2000s 2010s 2020s 2030s 2040s
Using projections from
Census of India 2001 2.02 2.04 2.16
United Nations 1.60 1.95 2.27 2.10 1.17
Population Division
US Census Bureau 1.62 1.93 1.69 1.15 0.57
Average 1.74 1.98 2.04 1.62 0.87
• Calculates the increment to annual per capita income growth relative to a counterfactual in which the working age ratio stays fixed at the 2001 level.
CONCLUSION
• Policies favoring fertility decline have created the demographic window
• Investments in education, health, and job creation are vital
• Good policies from government is needed on employment and education system