Demographic Dividend

India
By
Vaishnavi
Vedavalli
 Vaishnavi G

Demographic Dividend
Demographic dividend, as defined by
the United Nations Population Fund (UNFPA)
means, the economic growth potential that
can result from shifts in a populations 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).
Source: https://en.wikipedia.org/wiki/Demographic_dividend

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 Vaishnavi G

Demographic Dividend
Demographic dividend occurs when the
proportion of working people in the total
population is high because this indicates that
more people have the potential to be
productive and contribute to growth of the
economy.

Source: https://en.wikipedia.org/wiki/Demographic_dividend

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 Vaishnavi G

Demographic Dividend
As per the population research carried out by
the United Nations (UN), the countries located
in Latin America and Asia are reaping the
maximum benefit of the demographic
dividend.
The Economic Survey of India 2016-17
estimates that Indias demographic dividend
will peak in the early 2020s.

Source: www.un.org/esa/population/meetings/Proceedings_EGM_Mex_2005/mason.pdf

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 Vaishnavi G

Four mechanisms for growth in the

demographic dividend
Four main areas where a country can focus to reap
maximum of demographic dividends
Savings - personal savings grow and can be used
to stimulate the economy.
Labor supply: More workers are added to the
labor force
Economic growth: GDP per capita is increased
due to a decrease in the dependency ratio
Source: https://en.wikipedia.org/wiki/Demographic_dividend#Four_mechanisms_for_growth_in_the_demographic_dividend

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Vacancies everywhere as India fails
miserably to harness its demographic
dividend
Despite a population of 121 crore 31% of
them aged between 20 and 44 years India
continues to reel under severe staff shortage,
ranging from 20% to 50%, in crucial services.

Source: https://economictimes.indiatimes.com/jobs/vacancies-everywhere-as-india-fails-miserably-to-harness-its-demographic-
dividend/articleshow/58217810.cms
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Source: https://economictimes.indiatimes.com/jobs/vacancies-everywhere-as-india-fails-miserably-to-harness-its-demographic-
dividend/articleshow/58217810.cms
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India's biggest challenge lies in
demographic dividend:
Harish Manwani Chairman of Hindustan
Unilever
Challenge in the area of
employment generation
and employability.
Businesses will have to work
with educators and
government to frame skill
development programmes
in order to ensure that the
workforce of tomorrow has
future-ready skills
Source: https://economictimes.indiatimes.com/news/company/corporate-trends/indias-biggest-challenge-lies-in-demographic-
dividend-harish-manwani/articleshow/59386868.cms
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India will lose demographic dividend if
youth not trained :
Mr. Pranab Mukherjee India will lose its
demographic
"dividend" to a
demographic
"explosion" if it
does not train its
youth in the skills
required to
operate in the
future world
Source: https://economictimes.indiatimes.com/news/company/corporate-trends/indias-biggest-challenge-lies-in-demographic-
dividend-harish-manwani/articleshow/59386868.cms
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Demographic Cycle

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Demographic Cycle
INDIA
CHINA
USA
JAPAN

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INDIA
Competitive advantage.
Recent unescap survey.
The global economy is expected to witness a skilled
man power shortage 56 million by 2020 (approx)
Quality education, better preventive and curative
health care, enhancing skills
Faster generation of employment are being finalized to
ensure greater productivity of indian workers.
A recent report by a chinese think tank anbound,

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CHINA
China's over-crowded living conditions leads to a
demographic structural change,( diminishing labor
force.)
Shortage in the labor supply, weaker consumption
and innovation capabilities, and inadequate
propulsion for the national economy.

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USA
Consumption accounts for 70%
Aging population leads to change in structural
economy.
Older people tends to spend less when compared to
youngsters
Decrease in fertility rate demographic deficit is
observed

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JAPAN
Japans population could fall to 83 million by 2100.
35 percent of the population over 65 years old
(approx).

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Video Links
https://www.youtube.com/watch?v=qZjdt73w
dJA
https://www.youtube.com/watch?v=EKv7OtE
nPvE

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