Economics

Choose the Correct Answer

Correct Answer : Option d

Explanation
The concept of the demographic dividend refers to the economic growth potential that arises from shifts in a country’s age structure, particularly when the working-age population (typically defined as ages 15 to 64) becomes larger relative to the non-working-age population. This shift leads to a lower dependency ratio, meaning fewer dependents (children and elderly) for every working-age individual. Such a demographic scenario can create a window of opportunity for accelerated economic growth, provided the country implements effective policies in education, health, employment, and economic management.

Statement-I is not correct: The demographic dividend is not about indefinite population growth. Instead, it refers to the economic growth potential that arises from shifts in a country’s age structure, particularly when the working-age population (15 to 64 years) becomes larger than the non-working-age population. This shift can lead to increased economic productivity, provided there are supportive policies and infrastructure in place

Statement-II is correct: India is currently experiencing a demographic window where a significant portion of its population is of working age. However, to harness the benefits of this demographic dividend, it is crucial to provide adequate employment opportunities. Failure to do so can lead to high unemployment rates, especially among the youth, which may result in economic stagnation and social unrest. Reports indicate that despite robust GDP growth, employment generation in India lags, threatening to turn the demographic dividend into a curse.