Population age structural transition, demographic dividend and economic growth in India

Abstract In this paper, we have estimated India’s demographic dividend (i.e. macroeconomic return to demographic transition) by human capital approach and macro-economic regression models considering a longer and more appropriate time frame compared to previous studies and also modelled interaction...

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Main Authors: Neha Jain, Srinivas Goli, Arjun Jana
Format: Article
Language:English
Published: Springer Nature 2025-06-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-05042-0
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author Neha Jain
Srinivas Goli
Arjun Jana
author_facet Neha Jain
Srinivas Goli
Arjun Jana
author_sort Neha Jain
collection DOAJ
description Abstract In this paper, we have estimated India’s demographic dividend (i.e. macroeconomic return to demographic transition) by human capital approach and macro-economic regression models considering a longer and more appropriate time frame compared to previous studies and also modelled interaction analyses that purport to explain the mechanisms under which dividends are realised and also to understand the context they are expected to be largest. Our main analysis using panel data regressions highlights three key points. First, the demographic dividend is estimated to be about 1.9 percentage points per annum for the period 1981–2021 after controlling for core policy variables. Second, the favourable economic impact of demographic transition strengthened after 2011 but withered away in 2020–21 due to the Covid-19 pandemic. Third, the results based on interaction models support the argument that the realisation of the demographic dividend is conditional on a conducive policy environment with enabling aspects such as good healthcare, decent employment opportunities, and gender empowerment. The robustness of the main findings is verified by correcting for endogeneity using the instrumental variable regression model. Further, we validated our results by comparing our estimates based on the conditional Barro-regression model with previous studies.
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spelling doaj-art-7512fab03f08430c9468dcb2bd2b53132025-08-20T03:10:31ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-06-0112111310.1057/s41599-025-05042-0Population age structural transition, demographic dividend and economic growth in IndiaNeha Jain0Srinivas Goli1Arjun Jana2Indian Institute of Foreign TradeInternational Institute for Population SciencesInternational Institute for Population SciencesAbstract In this paper, we have estimated India’s demographic dividend (i.e. macroeconomic return to demographic transition) by human capital approach and macro-economic regression models considering a longer and more appropriate time frame compared to previous studies and also modelled interaction analyses that purport to explain the mechanisms under which dividends are realised and also to understand the context they are expected to be largest. Our main analysis using panel data regressions highlights three key points. First, the demographic dividend is estimated to be about 1.9 percentage points per annum for the period 1981–2021 after controlling for core policy variables. Second, the favourable economic impact of demographic transition strengthened after 2011 but withered away in 2020–21 due to the Covid-19 pandemic. Third, the results based on interaction models support the argument that the realisation of the demographic dividend is conditional on a conducive policy environment with enabling aspects such as good healthcare, decent employment opportunities, and gender empowerment. The robustness of the main findings is verified by correcting for endogeneity using the instrumental variable regression model. Further, we validated our results by comparing our estimates based on the conditional Barro-regression model with previous studies.https://doi.org/10.1057/s41599-025-05042-0
spellingShingle Neha Jain
Srinivas Goli
Arjun Jana
Population age structural transition, demographic dividend and economic growth in India
Humanities & Social Sciences Communications
title Population age structural transition, demographic dividend and economic growth in India
title_full Population age structural transition, demographic dividend and economic growth in India
title_fullStr Population age structural transition, demographic dividend and economic growth in India
title_full_unstemmed Population age structural transition, demographic dividend and economic growth in India
title_short Population age structural transition, demographic dividend and economic growth in India
title_sort population age structural transition demographic dividend and economic growth in india
url https://doi.org/10.1057/s41599-025-05042-0
work_keys_str_mv AT nehajain populationagestructuraltransitiondemographicdividendandeconomicgrowthinindia
AT srinivasgoli populationagestructuraltransitiondemographicdividendandeconomicgrowthinindia
AT arjunjana populationagestructuraltransitiondemographicdividendandeconomicgrowthinindia