Demographic dividend meaning – UGC NET Question

Demographic dividend describes the economic opportunity that can arise when the share of working-age people becomes larger than the share of dependents. In such a phase, societies can grow faster if they create enough jobs and invest in skills. Growth comes from higher labour supply, savings and productivity. Thus, the option linking demographic dividend to a high working-age proportion and potential economic growth is correct.

Option A:
Option A correctly highlights the condition and the opportunity. It notes the favourable age structure and its link with growth, not a guaranteed outcome. It matches how UN and development agencies define demographic dividend.

Option B:
Option B is incorrect because income does not rise automatically without sufficient employment and human capital. A young population can become a liability if jobs are absent. It ignores the conditional nature of the dividend.

Option C:
Option C is incorrect since demographic dividend is not about permanent population decline. It concerns a temporary window created by changing age structure, not strict reduction policies alone.

Option D:
Option D is incorrect because demographic dividend is driven by youth and working-age groups, not exclusive focus on the elderly. Elderly welfare is important but is related to ageing, not this growth opportunity.