Previous Year Question
India is regarded as a country with “Demographic Dividend”. This is due to
its high population in the age group below 15 years
its high population in the age group of 15–64 years
its high population in the age group above 65 years
its high total population
Correct Answer: B
Detailed Solution
Demographic dividend refers to the potential economic benefit arising from a favourable change in the age structure of a country’s population.
This opportunity emerges when the proportion of the working-age population becomes larger relative to the dependent population. In this question, uses the 15–64 years age group to represent the working-age population.
The conventional classification is:
0–14 years: Young dependent population.
15–64 years: Working-age population.
65 years and above: Elderly dependent population.
A large working-age population can contribute to economic growth through:
Expansion of the labour force and potential output.
Higher household income and domestic savings.
Potential increase in female labour-force participation.
Greater spending on education, health and investment because of lower dependency.
Expansion of the tax base and productive capacity.
However, a demographic dividend is not automatic. Healthcare, quality education, skill development, women’s participation and adequate productive employment are necessary. Without these conditions, a large young population may generate unemployment and social pressure.
Examination of the options:
Option (a): A high population below 15 years raises the child dependency ratio and does not constitute the current working-age population.
Option (b): The 15–64 years group represents the working-age population and forms the basis of demographic dividend.
Option (c): A high population above 65 years raises old-age dependency.
Option (d): A large total population alone does not create a demographic dividend; age structure, health, skills and employment are more important.