Question

Consider the following statements about Demographic dividend
1. It is when the share of the working-age population is larger than the non-working-age share of the population.
2. It may be followed by demographic tax where population growth stops, slows or even goes into reverse.
3. India is passing through the phase of demographic dividend since majority of its population is young.
Which of the above statement(s) is/are correct?

• A. Only 1 and 2
• B. Only 1 and 3
• C. Only 2 and 3
• D. All of the above

Answer 1

The correct option is D All of the above

Demographic dividend is defined as the economic growth potential that can result from shifts in a population’s 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). It is followed by demographic tax where population growth stops, slows or even goes into reverse. Japan is passing through the phase of demographic tax. India is passing through the phase of demographic dividend since majority of its population is young. More than half of India’s population is below 25, and more than 65 per cent below 35. By 2020, the average age of an Indian will be 29 years. Further, 37 million people are graduate and above, including 2.6 million engineers. However, if we don’t make good use of this ‘demographic dividend’, it can turn into a demographic disaster with a huge number of unskilled and semi-skilled youngsters forming the bulk of our labour force with low productivity — and lower wages. The government is aware of this challenge and is treating skilling as an important focus area. Whereas Skill India initiative will provide skills to youth, Make in India initiative will create jobs to harness demographic dividend of country.