Demographic Change and Economic Growth in India

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 more than three decades. Our analysis highlights four key points. First, contribution India’s dividend is estimated to be around 1.9 percentage points out 12% average annual growth rate per capita income during 1981–2015. Second, window opportunity began 2005, significantly improved after 2011, will continue till 2061. Third, our empirical supports argument that realisation conditional conducive policy environment with enabling aspects such as quality education, good healthcare, decent employment opportunities, infrastructure, gender empowerment. Fourth, working-age population contributes one-fourth inequality across states. Thus, reap maximum dividends from available opportunity, needs work towards enhancing education healthcare addition providing empowerment, opportunities for growing population.