Demographics to remain an important growth driver

The latest population projections released by the UN this month show that India will overtake China as the world’s most populous nation in 2023 (see Chart 1), a touch earlier than previously expected. The UN also projects that India’s working-age population will increase by around 150 million between 2022 and 2050, or just over 0.5% per annum. While that implies slower growth in the working-age population than over the past 20 or so years, it is still fairly strong by global standards. As long as employment growth can keep pace, the expansion of the working age population should remain a key driver of economic growth in India over the long term.