Q. Between 2001 and 2026, India’s population is projected to increase by 371 million, about 83% of this increase will be in the 15-59 age group. This will lead to:
Boost in investment
Higher dependency ratios
Higher savings rate
Choose the correct options:
Answer: 1 & 3
Notes: This question is based upon the concept of Demographic Dividend. Between 2001 and 2026, India`s population is projected to increase by 371 million. About 83% of this increase will be in the 15-59 age group. In the next 15 years, as a vast population enters the working age group, it is expected that they would be setting up their own households and consumption units. Vast opportunities can then arise, boosting various types of productive and investment activities. A relatively young population also implies declining dependency ratios and higher savings rate. Together, it can have a positive correlation on per capita GDP growth as witnessed in countries like Japan (1950s) and China (1980s). This is referred to as India`s demographic dividend.
