economy
India may face China’s problem before it reaches the Dragon's wealth
India’s total fertility rate has fallen to 1.9, below replacement level, even as the working-age population remains dominant. The country may confront ageing at a lower income level than China did. Economists say the next two decades are critical for creating jobs, improving skills, expanding care infrastructure and raising productivity.
Context
The Registrar General of India's Statistical Report 2024 reveals India's Total Fertility Rate (TFR) has declined to 1.9, falling below the replacement level of 2.1. This demographic shift raises concerns about whether India might face an aging population crisis, similar to China, before achieving high per capita income levels. The challenge lies in maximizing the demographic dividend while preparing for future aging-related economic and social pressures.
Exam Perspectives
Key References
AI-generated study notes · sourced from Economic Times