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Population Dynamics in India and Implications for Economic Growth

David Bloom

PGDA Working Papers from Program on the Global Demography of Aging

Abstract: Demographic change in India is opening up new economic opportunities. As in many countries, declining infant and child mortality helped to spark lower fertility, effectively resulting in a temporary baby boom. As this cohort moves into working ages, India finds itself with a potentially higher share of workers as compared with dependents. If working-age people can be productively employed, India's economic growth stands to accelerate. Theoretical and empirical literature on the effect of demographics on labor supply, savings, and economic growth underpins this effort to understand and forecast economic growth in India. Policy choices can potentiate India's realization of economic benefits stemming from demographic change. Failure to take advantage of the opportunities inherent in demographic change can lead to economic stagnation.

Keywords: age structure; China-India comparison; conditional convergence; demographic dividend; demographic transition; economic growth; economic growth in India; policy reform; population health; population of India (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dem, nep-dev and nep-fdg
Date: 2011-01
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