India's dependency ratio will soon rise for the first time in 70 years
The population dependency ratio is the share of those segments of the population who are dependents - children and the elderly - relative to those parts of the population who can be economically productive. A higher dependency ratio means that a country will need to spend more money on welfare measures like education, childcare, eldercare and pensions, while having a smaller base of people who can produce the wealth that is needed to fund such a safety net.
India's 'demographic dividend' was in part fueled by the decline in its total dependency ratio since the 1960s. As population growth began to slow down, more adults (aged 15-64 years) of working age were part of the population, forming a large workforce able to fuel the economy. This was reflected in the falling child dependency ratio - the ratio of children (aged 0-14 years) relative to the population.
But the total dependency ratio is made up of two parts - the child dependency ratio and the old-age dependency ratio. As India ages, the old-age dependency ratio keeps rising, and within the next ten years, this will drive the first increase in India's total dependency ratio in 70 years. This has implications for growth, development, eldercare and society.
Read more about how dependency ratios differ by state in India.
