Age Structure, Dependency Ratio and Occupational Structure

Age Structure

Age structure refers to the proportion of a population in different age groups, usually classified as:

• 0–14 years — children / young dependents
• 15–59 years — the working-age population
• 60 years and above — elderly / old dependents

India has historically had, and still has, a relatively young age structure compared with developed economies — a large share of its population is in, or entering, the working-age group, often described as India's demographic dividend: the potential economic benefit of having a large working-age population relative to dependents, provided this workforce is healthy, educated, and finds productive employment.

Dependency Ratio

The dependency ratio measures the number of dependents (children plus elderly) per 100 persons in the working-age group:

A falling dependency ratio — as a country's young-population share shrinks and its working-age share rises, before the elderly share rises later — is exactly what creates the 'window' for a demographic dividend, since it means fewer dependents for each working person to support, freeing up savings and investment. India's dependency ratio has been falling in recent decades, which many economists view as a major growth opportunity if matched with adequate job creation, skilling, and education — a key theme of TS Inter II year Economics.

Occupational Structure

Occupational structure refers to the distribution of the working population across the three broad sectors of the economy: