Previous Year Question

Demographic Dividend refers to the potential economic benefit that a country can obtain when the proportion of its working-age population is relatively high and the proportion of the dependent population is relatively low.

In this question, the 15-59 years age group is treated as the working-age population. When the share of this group increases, an economy has comparatively more potential workers, producers, earners and savers.

In contrast, the 0-14 years and 60 years and above age groups are generally treated as dependent age groups in demographic analysis. Therefore, the population aged 0-6 years or above 60 years cannot be the correct answer for Demographic Dividend.

However, a large working-age population does not automatically become an economic dividend. Its benefits can be realised only when people have access to education, health, skills and productive employment. Otherwise, a large working-age population may also generate challenges such as unemployment and underemployment.

Thus, the core idea of Demographic Dividend is not merely a large population but a favourable age structure and its productive utilisation.