Demographic Dividend
* ------------------------------------------------- “India’s economy would reap a better demographic dividend and would grow faster in the next decade” As compared to China, do you believe India will have a bigger advantage? Examine how your company is gearing up to benefit from the economic Boom in both the countries?
Definitely, I believe that India will have a bigger advantage when compared to china due to a better demographic dividend.
China & India are the two largest populations in the world, each has over a billion people. Currently population of China is larger than that of India. But India growth rate is higher. Every year India Adds more population to the world than any other country. The silver lining that we can see in India’s population growth is that it is accompanied by increase in proportion of working age component. Hence there was a demographic divided that India could hope for & reap. Below graph shows India’s share of the world’s population.
The dependency ratio in India is falling and is expected to reach below 50% in the next decade. In contrast, China’s dependency ratio is expected to increase from 39 % to 45 % over the next decade. The working population in China will have to feed a lot of depended population when compared to India. This indicated that the high economic growths in China have peaked out. Over the next decade there will be an upward rise in India’s economic growth and China’s growth will slope downwards. One of the favorable outcomes of the demographic dividend is that India will be the most important destination for the global investors.
The rise in women in the workforce is also a component of the demographic dividend. The number of Indian women joining the workforce has seen a steady rise, mainly due to the policies in the companies, which provide a better working environment for women.
The below graph indicates the demographic changes in the last 50 years & coming 50 years between India and China.
In
Definitely, I believe that India will have a bigger advantage when compared to china due to a better demographic dividend.
China & India are the two largest populations in the world, each has over a billion people. Currently population of China is larger than that of India. But India growth rate is higher. Every year India Adds more population to the world than any other country. The silver lining that we can see in India’s population growth is that it is accompanied by increase in proportion of working age component. Hence there was a demographic divided that India could hope for & reap. Below graph shows India’s share of the world’s population.
The dependency ratio in India is falling and is expected to reach below 50% in the next decade. In contrast, China’s dependency ratio is expected to increase from 39 % to 45 % over the next decade. The working population in China will have to feed a lot of depended population when compared to India. This indicated that the high economic growths in China have peaked out. Over the next decade there will be an upward rise in India’s economic growth and China’s growth will slope downwards. One of the favorable outcomes of the demographic dividend is that India will be the most important destination for the global investors.
The rise in women in the workforce is also a component of the demographic dividend. The number of Indian women joining the workforce has seen a steady rise, mainly due to the policies in the companies, which provide a better working environment for women.
The below graph indicates the demographic changes in the last 50 years & coming 50 years between India and China.
In