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The promise, progress and pressures of our demographic dividend
ET CONTRIBUTORS | February 6, 2026 10:19 PM CST

Synopsis

India's demographic and longevity dividends offer a unique window for growth, but require converting population numbers into skilled, healthy human capital. Addressing challenges like NCDs, malnutrition, mental health, and digital addiction through integrated healthcare and community participation is crucial for sustained prosperity.

India's growing working-age population (15-59 years old), expected to exceed 98 crore in the next decade and peak at 65% around 2030, presents a civilisational pivot. This "youth bulge” mirrors East Asia's miracles but extends uniquely into a "longevity dividend," where declining fertility (now 1.9) and rising life expectancy (70.3 years at birth) are providing us with a prolonged productive phase.

While a large working population offers immense potential to drive innovation and growth, this advantage is not destiny. India’s demographic and longevity dividends represent a narrow but powerful window of opportunity. It lies in converting the demographic numbers into productive, skilled and healthy human capital. Yet, nutrition and wellbeing present a multi-layered challenge that resists easy solution.

The daunting challenge is the paradoxes that healthcare presents. While people are living longer, resulting from better healthcare and sanitation, non-communicable diseases (NCDs) like diabetes and cardiac issues are increasing and of particular concern is the rise amongst the middle-aged. Recent data show that NCDs account for more than 57 per cent of all deaths in the country.


India also faces a complex nutrition reality. Persistent child malnutrition on the one hand and growing obesity among children on the other. Key nutrient deficiencies in adolescent girls, pregnant and lactating mothers, and micronutrient and mineral deficiencies in the general population, especially in the vulnerable and marginalised sections of society. Though we have reached calorie sufficiency, an analysis of food patterns and preferences reveals that a significant segment of the population consumes far more cereals than recommended, along with less protective foods such as legumes, milk, nuts, vegetables, and fruits. Such nutritional imbalance exacerbates the burden of lifestyle diseases, cancers, antibiotic resistance, and declining immunity in the future.

Complicating this further is the silent villain of modern-day life - mental health problems. The economic loss due to mental health conditions, between 2012-2030, is estimated at USD 1.03 trillion (WHO). India’s youth and the digital native generations are growing up where digital access is no longer a constraint - internet connections are at an impressive 96.96 crore (in 2024), with 85.5% of households owning at least one smartphone (2025), but usage is turning into a grave concern.

While technology supports learning, employment, and participation, excessive and compulsive use is becoming widespread, particularly around media and entertainment. High-intensity screen use carries real economic and social costs, including lost study time, reduced productivity, health burdens, and risky online behaviours. The impact of losing real-life connections is alarming. An analysis using Facebook’s Social Connectedness Index shows that the higher the income and urbanisation levels leading to more widely dispersed population in a geography, weaker are the local ties and in-person social connections. Chapters 11 and 12 of the survey discuss in detail the challenges, what’s being done to address them and what must come next, so we don’t lose the momentum to harvest our ‘demographic’ and ‘longevity’ dividend.

The government, through a wide range of initiatives, has emphasised building a healthy and productive citizenry. These include campaigns promoting healthy lifestyles and nutrition, such as POSHAN Abhiyan, Khelo India, Eat Right India, a nationwide awareness campaign ‘Aaj Se Thoda Kam’, the School Health and Wellness Programme, and the ICMR-NIN Dietary Guidelines, to address India's evolving food environment. It has redoubled efforts for NCD screening and awareness generation. Measures addressing mental health challenges and digital addiction, including the National Mental Health Policy and the 24/7 Tele-MANAS helpline, and the Regulation of Online Gaming Act 2025, have also been implemented. By combining Ayushman Bharat’s health insurance for senior citizens with early screening and management under the National Programme for Prevention and Control of NCDs, and the strengthening of AYUSH medical systems, India is in the process of building an integrated health care ecosystem and thereby laying the foundation for longer, healthier lifespans. All these are necessary but are not sufficient, if India is to meet her aspirations.

As we move forward, it is essential to recognise that while government schemes provide a blueprint, community participation is what brings them to life. Lasting impact depends on large-scale buy-in of the people on the initiatives and catalysing partnerships of the state machinery with communities, educational institutions, and workplaces. Every family, school and institution, every community and local government has to engage in promoting diverse diets, reducing consumption of ultra-processed foods, and encouraging healthy digital habits. Active embedding of well-founded social and behaviour change interventions is key to enabling the much-needed change in perceptions, in dispelling myths, and in breaking entrenched social norms backed by these partnerships. The demographic dividend is a developmental test. If India invests early, cohesively, and inclusively, this moment can become the foundation for sustained growth and prosperity.

Respectively, Chief Economic Adviser to the Government of India, and officers of the Indian Economic Service in the Economic Division. Views are personal.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)


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