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India is regarded as a country with “Demographic Dividend”. This is due to:
Its high population in the age group below 15 years
Its high population in the age group of 15-64 years
Its high population in the age group above 65 years
Its high total population
Demographic dividend occurs when the proportion of working people in the total population is high because this indicates that more people have the potential to be productive and contribute to growth of the economy. To reap the benefits of the demographic dividend, countries have to take some special measures that are aimed at economic development and better living standards. They need to invest in the following to get the maximum benefits of Demographic Dividend: • Health and Security • Education • Employment generation • Social security The peak of the demographic dividend is approaching fast for India. This peak will be reached in the early 2020s for India as a whole; peninsular India will peak around 2020 while hinterland India will peak later (around 2040). This presents an overall good window of opportunity for states in the hinterland in comparison to peninsular India.Failing to act on time can result in unemployment and imbalance in the economy.
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