Wednesday, July 8, 2020

Demographic dividend dissipating fast

A recent survey report released by the census office of India highlighted many important characteristics of the latest Indian demographics. As per the report, now more than half the population across segments (rural, urban, male, female) is above the 25yrs of age. With the steady fall in fertility rate and rise in life expectancy, the share of young population in Indian demography is declining steadily.
The key highlights of the data could be listed as follows:
  • The Sample Registration System (SRS) in India is carried out by the Office of Registrar General & Census Commissioner, India with an objective of providing reliable annual estimates of birth rate, death rate, infant mortality rate and various other fertility and mortality indicators. SRS is one of the largest demographic surveys in the world covering about 8.1 million population. It serves as the main source of information on fertility and mortality both at the State and National levels.
  • Presently two third (66%) of India's population is in working age (15-59yrs), whereas only 8.1% population is retirement age (60+yr). Working age population is higher in urban areas (69.1%) as compared to rural areas (64.5%).
  • Total fertility rate for the country is 2.2; but the urban rate (1.7) is much lower than the rural rate (2.4). At prime fertility age (25-29yrs) also the urban rate (119.1) is much lower than the rural rate (160.1).
Total Fertility Rate = he number of children who would be born per woman (or per 1,000 women) if she/they were to pass through the childbearing years bearing children according to a current schedule of age-specific fertility rates. It is commonly believed that a total fertility rate of 2.1 is ideal. If this rate is maintained for sufficiently long period, each generation will exactly replace itself. A lower rate will result in decline in population over a period. Italy (1.47); South Korea (1.29); Poland (1.38); etc are some of the countries facing low TFR.
  • The fertility rate has shown remarkable decline with the level of education. For illiterate its is 3.0 while for literate it averages 2.1. For graduate and above it has declined to 1.7.
  • Mean marriage age for the country is 22.3yr. There is not much difference between the rural marriage age (21.8yr) and Urban marriage age (23.4yr).
  • Uttar Pradesh has the highest birth rate (29.3) while Kerala has the lowest birth rate (11.9). (Birth Rate = Children born per 1000 population)
  • Chhattisgarh has the highest death rate (8.9) and J&K has the lowest death rate (4.5).
  • MP has the highest infant mortality rate (54), while the Kerala has the lowest (7).
  • Overall infant mortality rate has shown significant improvement from 2013 (40) to 2018 (32). Despite this decline, one in every 31 infants at the National level, one in every 28 infants in rural areas and one in every 43 infants in urban areas still die within one year of life.
  • The sex ratio at birth has however not shown much improvement in this period. Overall sex ratio at birth has worsened from 905 (2013) to 899 (2018). Chhattisgarh has reported the highest Sex Ratio at Birth (958) while Uttarakhand has the lowest (840).
The data clearly points towards the following five things:
(i)    The government, businesses and society need to rush to reap the much talked about demographic dividend.
(ii)   The talk about a national population control policy at this point in time is totally redundant and could be counterproductive.
(iii)  In next 10-15years we may have significant rise in dependent population due to old age, unemployment and skill redundancy.
(iv)   The poor eastern and central states account for the highest population below 25years of age. Whereas the southern and western states which are relatively more developed  account for the least proportion of young population. This essentially means, we shall see some of the following prominent trends in next 10-15years
(a)   Large scale migration of labor intensive industry from southern and western states to the eastern and central states.
(b)   Large scale migration of skilled and semi skilled workers from eastern and central India to the other parts.
(c)    Relatively much higher rate of investment, savings, infrastructure development, urbanization, industrialization and economic growth in the eastern and central states as compared to the richer southern and western states.
(d)   Eastern and central states gaining significant clout in the national politics. At present the relatively poor eastern and central states send the largest contingent to the parliament, but the power is mostly exercised by the relatively richer western and southern states.
(v)    Failure to materially increase investments in the development and growth of the young but poor eastern states immediately may push Indian economy permanently into lower middle class orbit.
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1 comment:

  1. This is special information about dividend which is shared by you. This information is meaningful and important for us to increase our knowledge about it. Always keep sharing this kind of information. Thanks once again. Top 5 Trading Platforms 2021

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