Demographic Change and Economic Development in India

Neha Jain () and Srinivas Goli
Additional contact information
Neha Jain: Indian Institute of Foreign Trade (IIFT), New Delhi

No 2262, Working Papers from Indian Institute of Foreign Trade

Abstract: In this paper, we assess the economic benefits of demographic changes in India by employing econometric models and robustness checks based on panel data gathered over a period of more than three decades. Our analysis highlights four key points. First, India’s demographic window of opportunity began during 2001-05 and significantly improved after 2011. Second, the demographic dividend is estimated to be about 1.9 percentage points per annum for the period 1981–2015 based on the panel of 25 states of India. Third, our empirical analysis supports the argument that the realisation of the demographic dividend is conditional on a conducive policy environment with enabling aspects such as quality education, good healthcare, decent employment opportunities, good infrastructure, and gender empowerment. Fourth, the working-age population in India contributes around one-fourth of the inequality in per capita income across states. Thus, to reap the maximum dividends from the available demographic window of opportunity, India needs to work towards enhancing the quality of education and healthcare in addition to providing good infrastructure, gender empowerment, and decent employment opportunities for the growing working-age population.

Keywords: Demographic Dividend; Economic Development; Population Growth; Working-Age Population; Health; Education; Employment (search for similar items in EconPapers)
JEL-codes: J10 J11 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2022
New Economics Papers: this item is included in nep-age and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
ftp://203.190.248.10/RePEc/ift/workingpapers/EC-22-62.pdf First version, 2022 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Failed to list directory /RePEc/ift/workingpapers and could not get modification time for EC-22-62.pdf [Opening ASCII mode data connection.; ]

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ift:wpaper:2262

Access Statistics for this paper

More papers in Working Papers from Indian Institute of Foreign Trade Contact information at EDIRC.
Bibliographic data for series maintained by S. Balasubramanian ().