Demographic Dividend, Longevity Dividend and Zero Population Growth

India is a nation of young people – out of a population of above 1.1 billion, 672 million people are in the age-group 15 to 59 years, – which is usually treated as the “working age population”.

A few years back, it was proposed that India in near future (30 years) will see a sharp decline in the dependency ratio over, which will constitute a major ‘demographic dividend’ for India. In 2001, 11% of population of the country was in age group of 18-24 years which is expected to rise to 12% by the end of XI Five Year Plan.

However, recent data says that India’s old age dependency ratio is increasing consistently:

Longevity Dividend

When people live longer, it offers society a chance to reap a ‘longevity’ dividend. This implies that the elderly continue to contribute significantly for an unprecedented period of time. However, in order to reap that benefit, it is necessary that the challenges of an ageing population and understood and effective policy are made in time.

Zero Population Growth

Zero population growth is an ideal condition when the birth rate equals death rate and the replacement level is 2. Zero population growth is often a goal of demographic planners and environmentalists who believe that reducing population growth is essential for the health of the ecosystem. Preserving cultural traditions and ethnic diversity is a factor for not allowing human populations levels or rates to fall too low. Zero population growth is seen with increase in elderly population which is opposite to demographic dividend.