Q.'India's population is both an asset and a burden.' Discuss.
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Start your 14-day free trial to unlock the full solution →The statement is essentially correct, and reflects the two-sided way in which economists analyse population.
The case for population as an asset: India's large working-age population (roughly 63% in the 15–59 age bracket as per Census 2011) is the country's biggest factor of production, supplying the labour that drives output. A large population also means a large domestic market, letting firms achieve economies of scale. When educated and skilled, this population additionally becomes a source of innovation, enterprise and entrepreneurship — the basis of India's much-discussed demographic dividend, especially valuable at a time when many developed economies face ageing populations.
The case for population as a burden: the same population, if it grows faster than the economy can create jobs, becomes a source of unemployment and underemployment rather than productive labour. It intensifies pressure on a fixed supply of land, water and forests; strains infrastructure and public services such as housing, healthcare, sanitation and schooling; dilutes the growth of per-capita income even when total GDP is rising; and adds to environmental degradation. …
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