The costs of population decline?

• India’s population is rapidly aging due to family planning policies aimed at slowing population growth.
• Southern and smaller northern states have seen a sharp decrease in total fertility rates.
• States with lower fertility rates have developed faster but are now facing a rapidly ageing population.
• The India Ageing report shows that the share of India’s elderly population is projected to rise from 10.1% in 2021 to 15% by 2036.
• States with lower fertility rates have largely developed faster but are now facing the spectre of a rapidly ageing population.
• Health expenses are likely to rise significantly in States with ageing populations.
• Southern politicians have raised concerns with the Finance Commission that while their successful economies have pumped in higher tax revenues to the central pool, they get a diminishing share of the central pie of resources due to their slowing population growth.
• Uneven population growth is set to shake up the federal structure, with the current freeze on the number of seats in Parliament set to expire in 2026.
• Southern CMs seem to be advocating pro-natalist policies by incentivising women to have more babies.
• Dr. Goli recommends changes in work-family policies, paid maternity and paternity leaves, accessible childcare, and employment policies that reduce the “motherhood penalty”.
• Another approach is to increase the working lifespan and thus reduce the old age dependency ratio.