The government has warned that as India’s demographic dividend- where the workforce grows faster than the rest of the population it supports, gives way to an ageing population in the next two decades. The country needs to prepare for longer working lives and perhaps a merger of schools. Over the next decade i.e. from 2021 to 2031, India’s working population will rise by 9.7 million every year. This will however soon fade as the fertility rate will go below the replacement. The 0-19 population has already begun to decline.
It is estimated that the number of retired people will be 239.4 million in 2041 versus 104 million in 2011. This will lead companies to reevaluate retirement age. It’s an urgent policy decision that requires a phased increase in retirement age.
The number of children in 5- 14 will also decline with implications for schools and consumer demand for companies are eyeing the young consumers. What do you think about this?