Demographic dividend is a potential and not destiny. In this context discuss the Advantage of demographic dividend.

India, however, seems to be in a demographic sweet spot with its working-age population projected to grow by a third over the same period.India’s demographic cycle is about 10-30 years behind that of the other countries, indicating that the next few decades present an opportunity for India to catch up to their per capita income levels.India will remain close to its peak for a much longer period than other countries.

 

Large working age populations relative to the overall population appear to benefit from greater economic dynamism.

 

Younger populations are more entrepreneurial (adding to productivity growth); tend to save more, which may also lead to favourable competitiveness effects.

 

It gives a larger fiscal base because of economic growth and because there are fewer dependents (children and elderly) for the economy and government to support.

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