Silver economy as opportunity: On October 1, the world marked the International Day of Older Persons under the United Nations’ 2025 theme: “Older Persons Driving Local and Global Action: Our Aspirations, Our Well-Being and Our Rights.” For India, the observance came at a critical moment. The country is often described as young, with a median age below thirty. But demographic transition is underway. A population is deemed ageing once those above 65 years make up more than 7 per cent of citizens; aged when that share rises above 14 per cent; and super-aged when it crosses 20 per cent. Japan, Italy and Germany have already crossed these thresholds and faced slowing growth, shrinking workforces, and rising pension burdens.
India will not remain young forever. The National Commission on Population projects that more than 15 per cent of Indians will be above 60 by 2036. The UN estimates that number at 300 million — greater than today’s US population. This shift is less than 15 years away. The question is not whether India will age, but whether it will prepare to turn this inevitability into an opportunity.
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Silver economy as growth engine
Ageing is not just a story of rising dependency. Globally, the silver economy is already worth trillions of dollars, sustaining jobs and driving innovation. In India, older households will emerge as the largest consumer segment in the coming decades. They will demand healthcare, housing, financial services, entertainment, wellness, and digital products—creating growth markets across multiple industries.
If businesses and policymakers anticipate this demand, the silver economy could become a major growth driver by mid-century. Consumption is only one side of the story. The elderly of the 2040s and 2050s will be healthier, better educated, and more digitally literate than any generation before them. They will bring decades of professional expertise and technological familiarity, allowing them to adapt to new industries instead of exiting the workforce. Work in the future will demand judgment, ethics, and integration of human and machine intelligence—all areas where older workers are well equipped.
Health policy to workforce participation
To unlock this potential, India must go beyond seeing seniors as mentors or dependents. Older workers can be directly employed in industries such as retail, tourism, healthcare, logistics, and digital services — sectors that already cater to their demographic. In addition, silver entrepreneurship offers vast promise. Senior professionals with savings, networks, and sectoral know-how can create enterprises in manufacturing, crafts, or technology-based services, generating employment and innovation.
Health will be the foundation. Longer lives are a liability only if they mean more years of ill health. Investment in preventive healthcare, nutrition, and affordable wellness infrastructure can extend healthy life expectancy. A McKinsey Health Institute study (2022) found that every rupee spent on the silver economy yields threefold returns. With India’s public health expenditure still at just 2 per cent of GDP, boosting this share is not charity—it is economic strategy.
Rethinking retirement and labour markets
Health investments alone will not suffice. India must reform its labour market institutions. In most Western economies, retirement marks a sharp withdrawal from work. But countries that allow phased retirements, flexible hours, or project-based work keep older citizens engaged and productive. For India, where social security is weak, such models could expand employment without straining fiscal budgets.
Even extending the working life of those aged 60–69 by five years would offset the decline in labour force growth caused by falling fertility. Flexible employment would also preserve cognitive health while enabling continued economic contribution.
Lifelong learning and age-friendly cities
The education system must adapt to the growing silver economy. Lifelong learning should support not just the young but also older Indians seeking “second and third careers.” South Korea’s senior colleges show how retirees can acquire new skills, start ventures, and engage in social enterprises. In India, low-cost edtech combined with community learning centres could make this a reality.
City design will be equally critical. Age-friendly cities — with reliable transport, multigenerational housing, and digital public services — will allow older residents to stay active. A World Bank study (2023) concluded that infrastructure designed for the most vulnerable improves productivity for all. For India’s congested cities, this is both social policy and economic necessity.
Global opportunities for India’s elderly
There is also a global dimension. While East Asia and Europe face shrinking workforces, India could export knowledge and advisory services through its digitally skilled seniors, much as its young workforce powered global IT services. If nurtured systematically, the silver economy could become both a domestic growth engine and a globally competitive advantage.
India’s challenge is not to postpone ageing but to redefine it. A society that treats the elderly only as dependents will face rising costs and stagnation. One that invests in health, enables flexible work, and sees seniors as producers, consumers, and entrepreneurs will turn longevity into an asset.
By mid-century, India will have more than 300 million elderly citizens. With the right policies—healthy longevity, flexible labour and education systems, and age-friendly infrastructure—the silver economy could embody a culture that transforms a demographic challenge into one of its greatest strengths.
Parth Tripathi is a graduate student of Economics, and Dr Aneesh KA Assistant Professor at CHRIST University, Delhi NCR Campus.