Economic Survey 2025-26: India gains from its large working-age population, but there’s a catch...

Economic Survey 2025-26 that was tabled at the Parliament on Thursday highlighted the double-edged sword that is its working-age population. Surely, India’s burgeoning workforce is beneficial for the nation but it comes with a very specific challenge.

Firstly, the good part: India continues to benefit from its mammoth working-age population, which is the age group of 15-59. This is expected to exceed 98 crore in the next 10 years. The survey also quoted UN projections that stated that India’s demographic dividend is expected to peak around 2030 – this is when nearly 65 per cent of the population will fall in the age group of 15-59. 

It must also be taken into account that this indicates that the population is steadily aging, the fertility rate has fallen below replacement levels and life expectancy has increased. All of these factors combined, the writing on the wall is clear: the onset of a demographic transition towards an older population. 

Now, on to the sobering part: All that work does not bode well for the health of the working-age population. “Epidemiological reports also indicate a rise in non-communicable diseases (NCDs) such as cardiovascular disorders, diabetes, and mental health challenges among the productive age groups,” stated the Economic Survey. 

It said policies that extend health spans through preventive healthcare, healthy lifestyles, and management of NCDs, alongside financial support, accessible healthcare, and social services for older adults is required. The survey said that investments in biomedical research, lifelong learning, age-friendly work arrangements and targeted programmes for informal and unorganised workers will ensure that longer life spans translate into sustained productivity and social well-being.

The survey further stated that Indian labour markets are undergoing significant structural transformations driven by digitalisation, green energy transition, and emerging forms of employment such as gig and platform work. Emphasis in the post-COVID world has now moved from quantity of jobs to quality of work.