Syllabus: GS1/ Society
In News
- Beijing is projected to become a super-aged society by 2035, reflecting China’s rapidly ageing population, declining birth rates and increasing life expectancy.
What is a Super-Aged Society?
- Under commonly used demographic classifications, a population is considered an ageing society when people aged 60 and above account for at least 10 per cent of the population.
- The threshold rises to 20 per cent for an aged society and 30 per cent for a super-aged society.
- An aging population increases demand for healthcare, pensions, long-term care and age-friendly infrastructure.
China’s Wider Demographic Shift
- As of end-2025: Beijing had 5.288 million residents aged 60 and above, accounting for 24.3% of its population.
- Low Fertility: China’s fertility rate is about 1.0 to 1.2, far below replacement level (2.1).
- Projection for 2035: More than 33% of Beijing’s residents are expected to be aged 60 or above which is roughly one in three people.
Reasons Behind Population Ageing
- Low birth rates & Shrinking workforce: China’s population has been declining since 2022. The one child policy (1979 to 2015) and urban living costs have locked in low births.
- Rising Longevity: Better healthcare has raised life expectancy to about 78 years, which enlarges the elderly base while the working age group shrinks.
- Demographic transition: Large older cohorts are moving into retirement age.
Implications of Ageing Society
- Shrinking Labour Force: A smaller workforce raises wages and weakens the manufacturing cost advantage. This pushes firms toward automation and relocation to cheaper economies like India and Vietnam.
- Fiscal Pressure: Pension and healthcare spending rise while the contributor base falls.
- Lower Savings and Growth: An older population saves less and consumes differently, reducing investment and potential GDP growth.
- New Opportunities: The silver economy covers healthcare, assisted living, insurance and geriatric technology, creating new markets.
- Global Supply Chains: China’s ageing accelerates the “China plus one” strategy, which opens space for India in electronics and manufacturing.
India’s Position
- Window of Advantage: India has a median age of about 28 years, and the demographic dividend will last till roughly the 2040s.
- Ageing is Underway: The 60+ population was about 10.5% in 2022 and is projected to reach about 20% by 2050 (India Ageing Report 2023). India’s fertility rate (2.0 in NFHS 5) is already below replacement.
- Regional Divergence: Southern states are aging faster. Kerala’s elderly share is projected to cross 20% by the mid 2030s, while Bihar and Uttar Pradesh remain young. This causes uneven fiscal burdens and migration pressures.
- Existing Framework: The National Policy for Older Persons (1999), Maintenance and Welfare of Parents and Senior Citizens Act (2007), NSAP pensions, Atal Vayo Abhyuday Yojana, and Ayushman Bharat PM-JAY (extended to all above 70 in 2024).
Challenges for India
- Getting Old Before Getting Rich: India’s per capita income is far below China’s, so it will age with less fiscal capacity and weaker social security.
- Pension Gap: Nearly 90% of workers are informal, and only a small share has pension coverage. Old age poverty is therefore a real risk, especially for women.
- Healthcare Strain: Non communicable diseases, dementia and weak geriatric care capacity add costs. Out of pocket spending remains high.
- Skill and Jobs Mismatch: The dividend is wasted if youth are not employable. Low female labour force participation compounds this.
Way Forward For India
- Harvest the Dividend Now: Invest in skilling, manufacturing and women’s workforce participation under Skill India and PLI schemes.
- Universal Social Security: Expanding the Atal Pension Yojana, NPS and the Code on Social Security 2020 to gig and informal workers is a good move.
- Geriatric Healthcare: Build specialised geriatric units in district hospitals, and promote long term care insurance and home based care.
- Silver Economy: Encourage senior living, assistive technology and elderly employment through flexible work.
- Decentralised Planning: Use Finance Commission transfers and state specific strategies to address regional ageing gaps.
- Learn from East Asia: Avoid coercive population policies. Focus on supportive childcare, housing and workplace policies instead.
Conclusion
- While China’s ageing may open space in global manufacturing and services, India must create productive jobs, improve skills, increase women’s participation and prepare for its own ageing transition.
Source: Firstpost
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