Widening Working Age Base A Tailwind To GDP Growth

New Delhi: India’s demographics are in a sweet spot, and the country is projected to add at least 179 million people to its working-age population by 2045, which can be a significant tailwind for economic growth, particularly as demographics in several parts of the world (including China) turn unfavourable, a new report said.

At the moment, India’s working-age population is around 961 million and the unemployment rate is at a five-year low.India’s working age population (age 25-64) is rising as a proportion of the total population which will be a positive for savings and investments as well, according to global investment firm Jefferies.

A rise in the Labour Force Participation Rates (LFPR) of females has started in India which will be among a key driving force for expansion of the labour force, alongside demographics.Labour force addition is expected to slow to 6 million by 2030, but the gap should be filled by the shift from agriculture jobs, said Jefferies in its latest note.

According to August data released by the Ministry of Statistics.