How well is India prepared for the silver surge?

It isn't whether we’re ready — but how quickly we can adapt to turn this impending wave into a tide of opportunity

India is at the cusp of a transformative demographic shift, one that could either drive us to new heights or leave us battling unprecedented challenges.

While much has been said about demographic dividends and the young workforce driving our economy, the reality of an ageing population cannot be overlooked. By 2050, one-fifth of the Indian population will be over the age of 60, effectively altering the fabric of our economy and society. The question isn't whether we’re ready for this silver surge — but how quickly we can adapt to turn this impending wave into a tide of opportunity.

The Women and Men in India Report 2023, released a few months back, makes it abundantly clear that our population, driven by a declining fertility rate and expanding life expectancy, is ageing rapidly. The challenges are manifold ranging from the strain on social security systems to the pressure on the future working population to support an increasing number of elderly dependents. However, amidst these challenges lies a unique opportunity for India — one that we must seize now, before the demographic scales tip irreversibly.

We are at a stage where initiating right forward-thinking policy interventions can turn potential challenges into opportunities. The Government of India’s recent expansion of the Ayushman Bharat Scheme for senior citizens is a promising step in the right direction, signalling much-needed recognition of the growing needs of our elderly population.

This move can finally set the stage for broader strategies for health, social, and economic security for an ageing nation. But to truly mitigate the challenges, a segmented approach is crucial — addressing the needs of the current elderly as well as the younger generation who will eventually support them. This can help inform our priorities in the areas of skilling, education, research and development, and investments.

The current policy landscape, though evolving, remains fragmented and inadequate to provide a strong social security net. From the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) in 1995 to the National Action Plan for Senior Citizens in 2019, we have made significant strides, but these efforts must be integrated into a cohesive framework. We must look at reforms beyond healthcare to include areas like inclusivity, rights, and financial security.

Another associated challenge of an ageing population is the economic burden it can place on the young working population, who are the primary caregivers to their elderly dependents. As their number increases, the economic strain will shift to the middle-aged workforce. If this dynamic is left unaddressed, we can witness faltering productivity and wider economic implications weakening the engine driving our economy.

To mitigate this burden, it is essential to empower the elderly and even those approaching their twilight years and secure their retirement. This can enable them to fund their own needs and become independent, consequentially easing the economic burden and we create a financially resilient elderly population.

The elderly are not merely passive recipients of care but an untapped economic potential in the form of the $7 billion ‘silver economy’ which is projected to snowball into $48 billion by 2028. This is an area where economic growth can be ensured by creating new markets around senior care, assistive technologies, and age-friendly services. This, however, requires a shift in how we view ageing and recognising the elderly as participants in the economy with spending power which can stimulate silver industries from healthcare to housing.

However, the government cannot act alone to unlock the full potential. Corporations, philanthropies, and CSR should play a crucial role in addressing gaps in the current system. These actors, with their access to global best practices, supporting research, and experience with pilot projects, can assist in scaling up solutions that are proven to work.

Further, the private sector can enable the creation of jobs in the geriatric care industry, with the government working towards creating a cadre of geriatric caregivers by promoting skill development and training. The silver care industry should be focused upon to transform as an aspirational sector churning out economic opportunities.

To unlock the silver economy, we must also acknowledge that for many economically disadvantaged elderly, it remains out of reach. This calls for policies that provide a robust social safety net, ensuring the silver economy benefits all, not just a select few. Here community-led models can play a transformative role. India can draw inspiration from global successes like Japan's Community-Based Integrated Care System (CBICS) and Singapore’s 'Aging-in-Place' programmes, which focus on home care, healthcare services, and senior activity centres to ensure social security for the elderly and simultaneously boost the silver economy. These align with some of our indigenously tried-and-tested frameworks, such as the success of ASHA workers in healthcare, who have been instrumental in last-mile service delivery and community mobilisation.

While there are several challenges associated with an ageing population, India has the opportunity to redefine elder care, economic dependency, and societal growth. With strategic planning, intersectoral collaboration, and the right conversations we can ensure the demographic transition does not catch us unaware. The future of Viksit Bharat lies in how well we prepare for the silver surge — by empowering our elderly today, we can build a more inclusive, resilient tomorrow.

(Anuj Pattanayak is an Associate, and Devika Dinesh is a Junior Associate at Chase India.)

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.