Challenges and Opportunities
India's rapidly ageing population presents both challenges and opportunities for the country's future. While the impact on economic growth is expected to be lower than in other Asian nations due to a still-young population, the need for universal health coverage and pension programs is becoming increasingly critical.
India's health insurance coverage for older people is among the lowest in the Asia Pacific region, with only 21% covered. Expanding programs like Ayushman Bharat, which provides cashless healthcare to the poorest, can improve health outcomes and productivity among older adults. Additionally, financial preparedness for retirement varies across the region, with India showing a high preparedness rate of 73%. However, the gap between rural and urban areas remains significant.
Life expectancy in India is expected to rise significantly, particularly for women. This demographic shift necessitates policies that support healthy aging, including investments in health, education, and skills development. Additionally, fostering strong family and social ties can contribute to a more productive and healthy older population.
While 40% of people over 60 in Asia and the Pacific lack access to pensions, with women disproportionately affected, many older people are forced to work beyond retirement age. This highlights the need for comprehensive pension and social security programs. However, the ageing population also presents an opportunity for a "silver dividend" in the form of increased productivity. By effectively employing older adults, countries can boost their GDP by an average of 0.9%.
India's ageing population requires proactive policy measures to address the challenges and harness the opportunities it presents. Expanding health coverage, strengthening financial preparedness, and creating supportive environments for older adults are crucial for ensuring a healthy and productive future for the country.