Aging India: Demographic Shifts and Rising Challenges
As Aging India transitions into a new demographic phase, addressing the needs and potential of its rapidly growing older population becomes paramount for ensuring a balanced and inclusive future.
India is undergoing a demographic transformation. Despite the optimism surrounding its youth-dominated population, fertility rates in 23 of its 28 states are below replacement levels. This indicates a shrinking youth population in the near future. Simultaneously, the number of individuals over 60 years is growing rapidly, with estimates suggesting a 41% increase between 2021 and 2031.
However, India’s policy response to these shifts has been inadequate. The National Policy for Older Persons (NPOP), introduced in 1999, lacked clear goals, effective implementation, and evaluation frameworks. Subsequent efforts, such as the 2011 draft National Policy for Senior Citizens, were never finalized. Meanwhile, schemes targeting older adults often fail due to poor awareness, low uptake, and minimal focus on addressing the productive potential of the elderly.
Existing Policies and Their Limitations
India’s central and state governments have introduced several schemes and laws for older adults, but most focus on financial aid. For example, initiatives like the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) provide minimal pensions to eligible seniors. However, less than a third of those eligible benefit from such programs due to bureaucratic hurdles and poor outreach.
Additionally, healthcare initiatives targeting older adults remain limited, with schemes like the Rashtriya Swasthya Bima Yojana failing to meet demand. These challenges reflect systemic issues: schemes view older adults as passive recipients of aid rather than recognizing their potential contributions.
Policies like SACRED, intended to help older adults find work, suffer from design flaws. A digital platform with English-language content excludes large portions of the population due to low digital literacy. These gaps in implementation highlight the government’s lack of a cohesive, inclusive approach to ageing.
Current Demographic and Health Trends and Gaps in Policy
- Demographic Shift and Policy Gaps
- India is undergoing demographic ageing, with fertility rates below replacement levels in most states.
- Older adults’ share of the population is projected to grow by 41% between 2021 and 2031, necessitating policy adjustments.
- Despite recognising ageing as a concern since 1999 (via the National Policy for Older Persons), policies lack robust implementation, defined goals, and evaluation mechanisms.
- Inadequate Government Response
- Most government schemes (6 out of 9) focus on financial aid, reflecting widespread poverty among older adults.
- Healthcare-related schemes address pressing issues but are insufficient in scope and reach.
- Programs like SACRED fail to leverage the productive potential of older adults due to barriers like digital illiteracy and poor execution.
- Challenges in Implementation
- Low awareness and poor utilisation of schemes such as IGNOAPS, Annapurna Yojana, and others.
- Administrative inefficiencies, including complex processes and delays, discourage eligible beneficiaries.
- Financial models like the old pension scheme (OPS) are unsustainable, and partisan politics threaten reforms like the National Pension Scheme (NPS).
- Neglect of Broader Needs
- Policies disproportionately benefit government employees and the poorest demographics, overlooking middle-income older adults.
- State-level retirement policies and electoral incentives, like those seen in Kerala and Madhya Pradesh, fail to address ageing comprehensively.
- Missed Opportunities for a ‘Longevity Dividend’
- Over half of men and a quarter of women over 60 remain economically active, indicating untapped potential.
- Effective engagement of older adults in the workforce is limited compared to other countries further along in their demographic transition.
- Political Dynamics and Electoral Calculations
- Political parties prioritise youth-focused policies over ageing-related issues, as seen in electoral manifestos for the 2024 elections.
- Increased retirement ages are often opposed under the guise of protecting youth employment.
Recommendations for Policy Reform
- Comprehensive Ageing Policy
- Finalise and implement an updated National Policy on Ageing, addressing gaps in previous policies.
- Incorporate lessons from the LASI to guide targeted interventions.
- Whole-of-Society Approach
- Encourage private sector, civil society, and family participation in supporting older adults.
- Incentivise individuals to save for retirement and remain economically active.
- Improved Awareness and Accessibility
- Simplify processes and enhance awareness campaigns for existing schemes.
- Address digital and language barriers in programs like SACRED to increase their inclusivity and impact.
- Fiscal Prudence and Sustainability
- Avoid regressive steps like reverting to OPS; instead, refine and promote NPS with added safeguards.
- Create frameworks for monitoring and evaluating the fiscal implications of pensions and welfare schemes.
- Engage Older Adults Productively
- Develop programs to enhance the skills and employability of older adults, focusing on their contributions to the economy.
- Long-term Electoral Engagement
- Recognise older adults as a growing electorate and align policies to cater to their needs beyond token measures.
- Address the zero-sum framing of youth versus elderly policies by promoting intergenerational solutions.
Weak Political Will and Its Implications
India’s political discourse often prioritizes youth needs, sidelining older adults. Electoral manifestos and policies frequently focus on employment and education for young people, while initiatives for older adults remain minimal or vague. For instance, despite the financial strain of reverting to the Old Pension Scheme (OPS), many politicians have supported it for short-term electoral gains, ignoring its long-term sustainability challenges.
Additionally, the portrayal of increased retirement ages as a threat to youth employment reveals how policymakers frame older adults’ needs in opposition to the youth. This divisive narrative prevents a balanced approach to addressing India’s demographic shifts. With fertility rates declining and life expectancy rising, Aging India must embrace comprehensive solutions to address the economic and social implications of its shifting demographic landscape.
Aging India: A Call for Comprehensive Reforms
India urgently needs to reform its approach to ageing. Future policies must move beyond tokenistic measures to adopt a whole-of-society approach. Families, civil society, and the private sector must collaborate with the government to ensure dignified living for older adults. Policymakers must also leverage data from studies like the Longitudinal Ageing Study in India (LASI) to design evidence-based interventions.
As the old-age dependency ratio worsens, the time for action is now. By prioritizing inclusive and well-implemented policies, India can ensure that its older adults live with dignity and contribute meaningfully to society.
The time has come for policymakers to reimagine strategies for Aging India, turning its demographic shift into an opportunity for societal progress and inclusive growth.
