Teenage Treasure

Demographic dividend, as defined by the United Nations Population Fund (UNFPA) means, “The economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older).” In other words, it is a boost in economic productivity that occurs when there are growing numbers of people in the workforce relative to the number of dependents. UNFPA stated, “A country with both increasing numbers of young people and declining fertility has the potential to reap a demographic dividend.”

Due to the dividend between young and old, many argue that there is a great potential for economic gains, which has been termed the “demographic gift”. In order for economic growth to occur, the younger population must have access to quality education, adequate nutrition and health including access to sexual and reproductive health.

In near future India will be the largest individual contributor to the global demographic transition. A 2011 International Monetary Fund Working Paper found that substantial portion of the growth experienced by India since the 1980s is attributable to the country’s age structure and changing demographics. By 2026, India’s average age would be 29, which is least among the global average.