Previous Year Question

The Dependency Ratio compares the population in the dependent age groups with the working-age population. In the context of this question, the dependent age groups are 0-14 years and 60 years and above, while the working-age population is 15-59 years.

It can broadly be expressed as—

Dependency Ratio = [(Population aged 0-14 + Population aged 60 and above) / Population aged 15-59] × 100

Therefore, when the proportion of the 15-59 years population increases, while the dependent-age population becomes relatively smaller, the number of dependents per 100 working-age persons falls and the Dependency Ratio declines.

This situation is also associated with the Demographic Dividend. As fertility declines, the proportion of children may fall while large population cohorts enter working ages, increasing the share of the working-age group.

It is also important to understand that the Dependency Ratio is an age-structure indicator, not a complete measure of actual economic dependency. Not every person aged 15-59 is necessarily employed, and not every person aged 60 or above is necessarily economically dependent.

Current Status

According to official population projections, the share of India's 15-59 years population was 60.7% in 2011 and is projected at about 64.8% in 2026. Over the same period, the total Dependency Ratio is projected to decline from 64.6% to about 54.3%.

However, population ageing will increasingly influence the trend. The total Dependency Ratio is projected to reach 53.7% in 2031 and then rise slightly to 54.0% in 2036, as increasing old-age dependency begins to offset declining young dependency.