The ageing truth: For decades, India has been described as a young nation. The demographic profile has indeed been a powerful driver of growth, with a working age population that has kept the economy dynamic. Yet the future will look different.
Within twenty five years, nearly one in five Indians will be over sixty. That will amount to more than 300 million citizens, nearly the entire population of the United States today. This change will shape every aspect of policy, from public finance to labour markets, and from healthcare systems to urban planning.
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The rise of what is often called the silver economy deserves closer attention in the Indian context. Older citizens are not only recipients of care, they are also consumers and contributors. Globally, spending by the elderly is a multi trillion dollar economic force. India will inevitably see the expansion of markets in elder health services, assisted living, home modification, insurance products, wellness industries and digital health platforms. At the same time, without supportive policies, the transition could deepen inequities and overwhelm already stretched systems.
Challenges facing India’s ageing population
The most immediate challenge lies in health. Non communicable diseases are already the leading cause of mortality in India, and their prevalence is strongly correlated with ageing. The country has very few geriatric specialists and limited infrastructure for long term care. Families have traditionally borne the responsibility, but with increasing migration, urbanisation and smaller households, this model is fraying. Mental health adds another layer. Loneliness and social isolation are now recognised as major determinants of wellbeing in older age. If left unaddressed, they will carry a significant social and economic cost.
The digital divide is a second area of concern. India has moved rapidly to digitise welfare transfers, banking, insurance and healthcare delivery. Many older citizens struggle to navigate these systems. For a generation that did not grow up with smartphones and biometric authentication, access to rights and entitlements can become unnecessarily difficult. Bridging this divide requires more than digital literacy drives. It calls for inclusive design of services, where technology adapts to the user rather than the other way around.
Economic security is equally pressing. Pension and provident fund coverage extends to only a minority of the workforce. A large share of elderly citizens will enter retirement without reliable income streams. This raises questions about the sustainability of public pension schemes, the adequacy of social security, and the role of private sector instruments in retirement planning. Without reforms, millions risk a precarious old age even as the aggregate economy grows.
The economic dimension goes beyond pensions. The ageing of the workforce will gradually affect productivity, laboursupply and sectoral composition. Policies that enable re employment, flexible work models and second careers can allow older workers to remain active and transmit skills to younger generations. At the same time, the very growth of elder services can create employment opportunities for youth, making the silver economy a bridge between generations rather than a point of division.
Urbanisation will add to the challenge. Age friendly cities will require barrier free transport, accessible housing and public spaces designed for safety and inclusivity. In rural India, the picture is different. As young people migrate to cities, villages are ageing faster. This places pressure on primary health centres and community structures that are already under strain. Policy will need to balance both urban and rural needs if ageing is to be managed equitably.
The gendered nature of ageing requires recognition. Women live longer than men and are therefore more exposed to poverty, widowhood and isolation. They are also more likely to carry the burden of care, both for older relatives and for grandchildren. Any policy that addresses ageing without a gender lens risks overlooking the vulnerabilities of women and the critical role they play in sustaining families and communities.
Family and community will remain central even as formal systems expand. Informal caregiving still accounts for most elder support in India, but it is under growing stress. Policies that provide caregivers with recognition, allowances or tax relief can ease this burden. At the same time, encouraging local volunteer networks and community based care initiatives can provide low cost support against loneliness and frailty.
Technology will have an important role in shaping solutions. Beyond digital access, there is scope for low costassistive technologies, wearable health devices and telemedicine that can extend care into remote and under resourced settings. India has the capacity to emerge as a global hub for such innovations, just as it has done with pharmaceuticals. Designing technology that is affordable, intuitive and inclusive could become a distinctive Indian contribution to the global silver economy.
The fiscal implications of ageing are far reaching. Pensions, healthcare subsidies and social security will require growing public resources. The intergenerational balance of taxation and benefits will need careful management to prevent tensions between younger and older cohorts. Expanding contributory schemes, strengthening insurance markets and introducing preventive health programmes can make the fiscal burden more sustainable over time.
Global lessons
Other countries that have faced ageing earlier offer useful insights. Japan has experimented with robotics in elder care and community based health hubs. European states have developed long term care insurance and tax incentives for age friendly housing. These experiences cannot be transplanted wholesale, yet they point towards the importance of community care, preventive health and financial security. India has the opportunity to adapt such models to its own scale and resources, and to design solutions that are cost effective and culturally rooted.
The transition to an ageing society also contains a positive opportunity. With foresight, India can develop a vibrant silver economy that generates employment, stimulates innovation and meets the needs of older citizens with dignity. This will require coordination across ministries, collaboration with the private sector, and sustained investment in human capital. Training mid level health workers in geriatric care, encouraging start ups that design services for seniors, and expanding the reach of social security are all steps that can anchor this agenda.
The deeper question is one of values. Policy should not only address the economic and administrative implications of ageing. It must also uphold the dignity and agency of older citizens. A society that treats its elders with care and respect sends a signal about the quality of its development. The time to build these is now, before the demographic window fully closes and the country finds itself unprepared.
Srinath Sridharan is a strategic counsel with 25 years experience with leading corporates across diverse sectors including automobiles, e-commerce, advertising and financial services. He understands and ideates on intersection of finance, digital, contextual-finance, consumer, mobility, Urban transformation, and ESG. Actively engaged across growth policy conversations and public policy issues.