Deprived When Young. Abandoned When Old

INDIA WILL HAVE AGED before it turns into a 'developed' economy. This must concern us. As per the United Nations, a society is 'aging' when seven per cent of its people are above the age of 65. One in every ten Indian is aged above 60 years. They number 130 million, growing at 4.2 per cent, twice as much as the population. In the next 25 years a fourth of our population will comprise 'elders'.

While we celebrate the longevity of our people, we must be equally concerned about the quality of their lives during the sunset phase. Most are deprived of any pension or health benefits. Without support, the poorest will live in misery triggering enormous socio-economic pressures. The cost will largely be borne by the present and future generations. The goal must be to minimise the cost and yet provide the elders a well-deserved life of dignity.

We Are Not Behind The Curve. We Have Barely Begun Our young and thriving demography has created the demand. Low-cost prowess has fulfilled it, triggering a rapid and virtuous growth cycle. While we 'bank' the demographic dividend and bask in the country's rapid economic growth, a countervailing force is at play. It threatens to offset several benefits, pare and even choke the growth drivers.

Demography planning is decadal. The evidence on the ground must alarm us. A Crux study across 280 districts covering 17,000 elders confirms a depressing future. Our ageing population will demand economic resources in the region of two per cent of the GDP.

The study highlights the obvious. The unorganised sector provides' 80 per cent of the jobs but contributes to less than a third of the GDP. These employees have no pension, no benefits and earn less than the per capita income. The sector has no capacity to provide a higher remuneration. This is a feature of a frail economy, and well-known. However, the implication is less understood, often ignored and rarely acted upon.

Health insurance has low penetration, compounded by an extremely poor payout history. Healthcare cost has been spiralling due to the government's indifferent attitude. It has abdicated its role.