What do you mean by 'Demo- graphic Dividend'?

The term 'Demographic Dividend' refers to an episode of accelerated economic growth resulting from shifts in a population's age structure [2]. This phenomenon occurs when the share of the working-age population (typically defined as ages 15–64 or 20–59) is significantly larger than the non-working-age share, which includes children and the elderly [3]. This shift reduces the dependency ratio, meaning fewer dependents are supported by each worker, thereby increasing the potential for productivity, savings, and investment-led growth [5]. While factors like literacy and government policies are essential to harness this potential, the dividend itself is fundamentally defined by the demographic transition toward a higher proportion of productive individuals relative to dependents [6]. India is currently experiencing this phase, with its working-age population expected to peak around 2041 [1].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Recent demographic trends > p. 259
2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 19: Population and Demographic Dividend > DEMOGRAPHIC DIVIDEND > p. 572
3. [3] https://en.wikipedia.org/wiki/Demographic_dividend
4. [4] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 19: Population and Demographic Dividend > Challenges Related to Demographic Dividend > p. 573
5. [5] https://policy.desa.un.org/publications/frontier-technology-issues-harnessing-the-economic-dividends-from-demographic-change
6. [6] https://www.investopedia.com/terms/d/demographic-dividend.asp