As reported by Financial Times

According to the UN Population Fund’s World Population Dashboard, released on Wednesday, India’s growing population is to surpass 1.428bn by mid 2023, just above the more than 1.425bn people in China, where fertility rates are falling.

Population growth is a politically sensitive topic in China and India and both governments were subdued in their responses to the demographic milestone.

“I want to tell you that population dividends don’t only depend on quantity but also on quality,” Wang Wenbin, China’s foreign ministry spokesperson, said on Wednesday. “Our population dividend has not disappeared, our dividend is forming, and the impetus for development is strong.”

Economic impact is muted

India is seeking to profit from the reorientation of supply chains away from China and overtook the UK last year to become the world’s fifth-largest economy.

However, it lags behind China on foreign direct investment, and its own investment in infrastructure, and has struggled to create enough jobs for millions of young people entering its labour force every year.

Unemployment has been climbing despite the country’s status as the world’s fastest-growing large economy this year, posing a challenge to Prime Minister Narendra Modi’s government as it prepares to seek a third term in office in an election next year.

“India must utilise the window of opportunity for the demographic dividend that is currently available, but will not be able to if the pace of investment is slow,” said Poonam Muttreja, executive director of the Population Foundation of India. “This means that India will have to work at a faster pace and invest in people — especially the young.”

Tags #india #china #population #demographics #economy