
International Journal For Multidisciplinary Research
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Volume 7 Issue 3
May-June 2025
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Economic implications of Demographic Dividend in India: An Analysis
Author(s) | Dr. R.Karthikeyan . .Rengaiyan, Dr. M.Sulthana Barvin . ., Ms. V.Nalini . . |
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Country | India |
Abstract | The Economists and Demographers are debating for a long on the Population Change and Economic Growth nexus that whether population growth promotes, hinders or nothing doing in the development process. In the population dynamics, the changing in the age structure has a number of socio, economic and political implications and hence policymakers with a broad view of development and the complex relation between economic and human development must factor these effects of changing age structure into decisions about their countries’ future. In most of the developing and emerging economies whose mortality and fertility rates are beginning to fall, there is an opportunity for governments to capitalize on the consequent demographic transition, where the number of working age adults grows large relative to the dependent population and potentially acts as a major economic spur. The demographic dividend is the consequence of the demographic transition, this phenomenon occurs when the birth rate begins to decline and the age structure shifts to the working-age group. Number of empirical studies indicates that the overall effect of an ageing national population on total labour productivity is quite small compared to the influence of other factors such as education and institutional support. Generally, a youthful and dynamic population brings fresh ideas and energy to the economy, fostering innovation and entrepreneurship. Additionally, a growing working-age population stimulates consumer demand, fuelling domestic production and creating new job opportunities. A larger share of working-age individuals compared to dependents can also ease the financial burden on social services and government support systems. By harnessing these positive outcomes, developing economies can accelerate economic growth further, improve living standards for all and enhance global competitiveness. Based on these observations, a modest attempt is made to study the implications of Demographic Dividend and Economic Growth relations in India through the data published by various Government Institutions as Reports and Statement like Population Statistics, RBI Bulletin, World Bank Report, Economic Surveys, etc. It is advocated that the government can intervene to realize the country’s ongoing demographic dividend by increasing the rate of productivity growth by investing in human capital via educational policies, worker training, entrepreneurial skill and health programs; further, encouraging research and development will also result in a higher rate of productivity growth. The findings could lead to better-targeted population strategies, more effective public policies, and a deeper academic understanding of socio, economic and environmental implications of demographic dividend in the context of an increasingly complex demographic structure at macro level. |
Keywords | Demography, Demographic Dividend, Fertility Rate, Vital Rate, HDI |
Published In | Volume 7, Issue 2, March-April 2025 |
Published On | 2025-04-26 |
DOI | https://doi.org/10.36948/ijfmr.2025.v07i02.42666 |
Short DOI | https://doi.org/g9gvg5 |
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E-ISSN 2582-2160

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