Demographic Dividend

Tax Glossary Definition

Demographic Dividend

Demographic Dividend – The demographic dividend refers to the potential economic boost a nation can achieve when its working-age population outnumbers dependents such as children and the elderly. This favorable age structure can enhance productivity, increase savings, and accelerate economic growth—provided there are sufficient opportunities for education, skill development, and employment.

Example: India is projected to gain from its demographic dividend as a growing share of its youthful population joins the labor force.

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