The Interplay between Demographic Dividend and Economic Growth in India: Opportunities and Risks

Abstract

India’s demographic transition presents a unique opportunity for economic growth, often referred to as the "demographic dividend." India is poised to experience a significant demographic dividend, characterized by a large working-age population relative to dependents. This paper examines the relationship between demographic dividend and economic growth in India, highlighting the opportunities and risks associated with leveraging this dividend. Using a literature review, the paper explores historical examples, theoretical frameworks, and empirical evidences. It offers insights into how India can leverage its demographic transition effectively. It will also highlight key challenges such as employment, education, and gender inclusion.