As Finance Minister Nirmala Sitharaman prepares to present the Union Budget for 2025-26, Population Foundation of India underscores the critical need to align fiscal policies and allocations with India’s demographic trends. Understanding and addressing these trends are key to long-term sustainable development and ensuring that the benefits of economic growth are equitably shared across all age groups and genders.
“Population trends are not just about numbers; they are the blueprint for long-term policy and program planning and implementation,” said Poonam Muttreja, Executive Director of Population Foundation of India. “To achieve the government’s vision of Viksit Bharat 2047, we must invest in empowering our youth, advancing gender equality, and supporting our ageing population.”
Investing in India’s Young Population
India, with over 253 million adolescents, has a unique opportunity to leverage its demographic dividend. This age group has the potential to drive economic growth, but only if their health, education, and skill development needs are met. Programs like the Rashtriya Kishor Swasthya Karyakram (RKSK), which address key adolescent health concerns, remain underfunded, limiting their reach and effectiveness.
“Investing in the education, health and well-being of adolescents is critical for building a strong foundation for India’s future,” said Muttreja. “A healthy, educated, and skilled youth population will shape India’s journey to becoming a developed nation.”
Advancing Gender Equality and Male Engagement
Empowering women is a cornerstone of sustainable development. Reducing gender disparities in education, workforce participation, and access to healthcare can unlock the gender dividend, significantly boosting economic productivity. However, at just 37%, India’s female labour force participation remains well below the global average.
Global examples demonstrate the importance of engaging men in health and gender equality initiatives. Australia’s Men’s Behaviour Change Programs and Norway’s Men’s Equality Commission provide valuable lessons on involving men as allies in achieving gender equality and fostering healthier families.
“True progress towards gender equality requires the active participation of men,” said Muttreja. “By promoting shared responsibility in family planning and health outcomes, we can create more equitable and harmonious households.”
Investing in Social and Behavior Change Communication (SBCC) can play a pivotal role in promoting gender equality and improving men’s participation to achieve that goal. Adequate budgetary allocations for SBCC initiatives can also address barriers to accessing health services, especially in rural and underserved areas, ensuring equitable development.
Preparing for an Aging Population
Policymaking must also consider the steady increase in the proportion of the elderly population. By 2050, over 20% of India’s population will be aged 60 and above, necessitating immediate action to plan for their health, social, and financial needs. Investments in this area are critical not only for the well-being of older citizens but also for harnessing the “silver” dividend. Investments in the provision of specialized geriatric care through the public health system, social security schemes to provide financial stability for the elderly, reducing dependence and poverty by promoting active aging and developing age-friendly urban and rural infrastructure are some essential steps that need to be taken right away.
“Caring for our ageing population is not just a moral imperative but an investment in a society where every generation contributes to progress,” said Muttreja.
The Union Budget 2025-26 is an opportunity to align national priorities with India’s evolving demographic realities. By investing in the health and education of youth, advancing gender equality and male engagement, and preparing for an aging population, India can lay the foundation for inclusive and sustainable development.
