The population of elderly people in India is increasing rapidly.
A revolution is taking place in India, the sound of which we are probably not able to hear in the noise of everyday life. This is not a political or industrial revolution, but a major demographic shift happening within our homes. This revolution is the increasing elderly population in the country. As of today, the number of people aged 60 years and above in India is around 15 crores. How big this figure is can be estimated from the fact that it is equal to the total population of a huge country like Russia.
This is not just a number, but it is the reality that will decide the economic and social direction of the coming India. Today the country is standing at a crossroads, where on one hand the question is whether this ‘Silver Generation’, which is our heritage, will become a new ‘growth engine’ for the economy? Or will this huge population become a heavy burden on the country’s system?
These figures will surprise you
According to the report of Economics Times, the picture of the future is even bigger. It is estimated that by 2036 this figure of 15 crore will increase to 23 crore. And by 2050, every fifth citizen of India will be an elderly, whose total number will reach about 32 crores. If we include people above 45 years of age, then by 2050 they will constitute 40% of the country’s population (about 655 million people). This is the class whose purchasing power is considered to be the highest in the world.
There is one aspect of this big picture that raises deep concerns about the future. The first and biggest concern is about health. Only one out of every five elderly people in India has some kind of health insurance. The simple and bitter truth is that 80% of the elderly population either has to spend their life savings on treatment, or they become dependent on their family members.
70% elderly depend on their families
According to the report, the situation on the economic front is also not very satisfactory. About 70% of the elderly in the country are either dependent on their families for their daily expenses, medicines and other needs or have to survive on a very meager pension. This shows their deep economic insecurity. A study by the Health Ministry shows that 26% of the debt incurred by the elderly in urban areas is due to expenditure on health services alone.
It is also a fact that the per capita monthly income of families which have at least one elderly member is lower than those families which do not have any elderly member. This clearly shows that increasing age is becoming an economic threat not only for the individual but also for the entire family.
‘Silver Economy’ worth ₹73,000 crore
But the other side of the coin is full of hopes and opportunities. India’s ‘silver economy’, that is, the market based exclusively on the needs of the elderly, their preferences for goods and services, has already grown to a huge size of Rs 73,000 crore. And experts believe that this is just the beginning. It is likely to grow exponentially in the coming years.
Companies have started to understand the power of this big and new market. For example, FMCG giant ITC has launched a range of special products in the market called ‘Right Shift’. He deeply understood the needs of the elderly and health conscious people.
They removed things like preservatives, artificial colors and flavors from their products. Also, healthy alternatives like pink salt instead of white salt and jaggery instead of sugar were adopted and the amount of sodium was also controlled. This is a clear indication that if the needs of the elderly are properly understood and products are made for them, then it is a huge opportunity for the economy.
A market that hasn’t even started yet
Rumki Majumdar, economist at Deloitte India, believes that this ‘senior care’ market in India is creating new opportunities worth billions of dollars in future in sectors like real estate, healthcare, entertainment and financial services. All that is needed is that we create an ‘age-friendly’ ecosystem.
‘Senior Living’ is one such emerging area in the real estate sector. Anuj Puri, chairman of ANAROCK, calls it a “shockingly inadequate” market. He says that while in countries like America and Australia this market has developed up to 6%, in India it has not even touched the 1% figure. Whereas it is estimated that by 2030 this sector alone can become a market worth Rs 64,500 crore. In just the next five years, the country will need 23 lakh senior living homes.
But Puri also gives a warning. This is not a traditional real estate game, where the builder builds the house and hands it over to the society and his responsibility ends. In a senior living project, the builder has to be associated with the project throughout its life cycle, which also includes partnering with specialist health agencies.
Thinking has to change, don’t stop at 60
Experts say that if we do not prepare the right policies, right infrastructure and right social structure, then this increasing population can become a huge burden on families and our welfare systems. But if we recognize the power of this ‘Silver Generation’, their experience and their purchasing power, then this country can move forward on the path of becoming a superpower.
The solution to this problem will not be found merely by providing care or pension. The real need is to change thinking. As experts suggest, thinking about ‘senior living’ needs to start from the age of 50, not 60. It should not focus just on ‘old age care’ but on ‘active lifestyle and fitness’.
It is necessary to increase the economic participation of the elderly
Experts say that it is most important that the economic participation of the elderly should not be stopped at the age of 60. Society needs to teach them new skills, engage them in part-time work and flexible work models. India’s ‘Silver Economy’ will truly shine only when we empower our ‘Silver Generation’ and include them in the mainstream of the economy instead of marginalizing them. Because age is not just a number, it also brings with it experiences and values, provided the society makes space for it.