RAS question
The Demographic Dividend refers to:
Correct answer: (B) Economic growth potential from a large working-age population.
Demographic dividend refers to the economic growth potential that arises when the working-age population is large relative to the dependent population.
Explanation
Demographic dividend is not just a large population; it is the growth opportunity created when the share of people in the workforce is higher than the share of dependents such as children and the elderly. The working-age bracket is 15-64 years, and India is in this phase, with about 65% of its population in that age group. UNFPA supports the same idea by describing demographic dividend as a boost in economic productivity when workforce numbers grow relative to dependents. The logic is straightforward: when more people are able to work than need support, resources can be channelled into investment and economic development, provided suitable social and economic policies are in place.
Why the other options are wrong
- (A) Equal male-female ratio describes sex ratio, while demographic dividend is about the age structure of the population and the working-age share relative to dependents.
- (C) An increase in the old-age population raises the dependent share, so it is a demographic challenge rather than the workforce-heavy phase described as a dividend.
- (D) Population decline is not the defining feature; demographic dividend depends on a favourable working-age population compared with children and elderly dependents.
Concept
This tests the population-and-development link in Indian Economy: how age composition can affect growth potential. It recurs in RAS because India’s working-age profile is often discussed with employment, skill formation and inclusive growth.