Q.Distinguish between population as an asset and population as a burden.
Population as an asset: a large, growing population supplies labour — the most abundant factor of production in India — supports a bigger domestic market that allows firms to achieve economies of scale, and, if educated and skilled, contributes fresh ideas, enterprise and a demographic dividend to economic growth.
Population as a burden: the same growing population intensifies pressure on a fixed supply of land and natural resources, and if job creation does not keep pace, it produces unemployment and underemployment instead of productive labour. It also strains infrastructure and public services (housing, healthcare, schooling, sanitation), dilutes per-capita income growth, and adds to environmental degradation.
| Basis | As an Asset | As a Burden |
|---|---|---|
| Labour | Drives production | Surplus/unemployed labour if jobs are scarce |
| Market | Larger demand, economies of scale | — |
| Resources | — | Pressure on land, water, forests |
| Services | — | Strain on housing, health, schools |
| Income | — | Slower growth of per-capita income |
The deciding factor in which outcome prevails is the pace of investment in education, health and employment generation relative to the pace of population growth.
The same population is an asset when it is productive, employed human capital, and a burden when its growth outstrips jobs, resources and services.
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