Dependency ratio
Topic: Population of India: Distribution, Density, Growth and Composition · NCERT: Beyond NCERT
Meaning
The dependency ratio is the number of dependants for every 100 people of working age. Dependants are children under 15 and people aged 65 and above. Working age is 15-64. A high ratio means each worker must support many people who do not earn. It has two parts. Child dependency counts the young, and old-age dependency counts the elderly. In India, child dependency is falling while old-age dependency is rising, fastest in the south.
Example
In Census 2011, about 31% of Indians were under 15. Southern states such as Kerala, on the south-western coast, now have fewer children and more old people, so their old-age dependency is rising fastest.
Don't confuse with
- Demographic dividend: this is the extra economic growth that is possible when the dependency ratio is low. The dependency ratio is only the measure. The dividend pays off only if people have jobs, skills and good health.