Question

Age Composition of the Population of India 1961-2026.

Year	Age groups			Total
	0-14 years	15-59 years	60+ years
1961	41	53	6	100
1971	42	53	5	100
1981	40	54	6	100
1991	38	56	7	100
2001	34	59	7	100
2011	29	63	8	100
2026 (Projected)	23	64	12	100

Based on the above table, answer the following questions:

1. What is meant by demographic dividend?
2. Based on the data given in the above table, compare the data of the years 1961 and 2026 and state your inferences.
3. A falling dependency ratio can be a source of economic growth and prosperity. State how.

Answer 1

1. Because there are more workers than nonworkers, a declining dependency ratio can contribute to economic growth and prosperity. This gain resulting from the shifting age distribution is frequently referred to as the "demographic dividend." Stated differently, a demographic dividend is the expansion of an economy brought about by a shift in the age distribution of a nation's population.
2. The inferences are mentioned below:
   1. The majority of Indians are typically young, making the country's population extremely youthful in 1961. Nonetheless, the proportion of the population under 15 has decreased from its peak of 42% in 1971 to 29% in 2011.
   2. The percentage of people in the 15–59 age range has gone up somewhat from 53% to 63%, while the percentage of people in the 60+ age range is still relatively low but has started to rise (from 5% to 7%) within the same time frame.
   3. Over the next two decades, there will likely be a considerable shift in the age distribution of the Indian population.
   4. The share of people aged 0 to 14 will decrease by about 11% (from 34% in 2001 to 23% in 2026), while the share of people aged 60 and over will rise by roughly 5% (from 7% in 2001 to roughly 12% in 2026).

3. Lower dependency ratios can lead to economic growth and prosperity by increasing the proportion of workers compared to non-workers. There will be a higher proportion of working-age individuals compared to the elderly and dependents. Working-age individuals will be relieved of their burden. The age structure will change.