HOW WELL IS INDIA PREPARED FOR THE SILVER SURGE

THE CONTEXT: India’s population structure is evolving rapidly, with a notable increase in elderly citizens. As of July 1, 2022, 149 million people were above 60 years of age, constituting 10.5% of the total population. By 2050, the elderly population will reach 347 million, accounting for 20.8% of India’s population. The UNFPA India Ageing Report 2023 suggests that by 2046, the elderly population will likely surpass the population of children aged 0-15.

THE CHALLENGES

• • The strain on social security systems: Only 29% of elderly people can access schemes such as old-age pensions or provident funds. Approximately one-third of the elderly population reported no income over the past year, highlighting the severe financial insecurity among this demographic. The budget allocated to critical social security schemes has declined to a mere 0.2% of the total budget outlay, indicating a lack of prioritization.
  • Pressure on future working population: The working-age population (25-64 years) is expected to increase until 2040, after which it will decline, potentially impacting economic growth and productivity. By 2050, 20.8% of India’s population will be elderly, significantly increasing the old-age dependency ratio.
  • Economic burden on young and middle-aged caregivers: Only 29% of senior citizens receive financial support from family members, indicating a substantial burden on caregivers. The prevalence of multiple morbidities among the elderly (54% dealing with two or more non-communicable diseases) increases the care requirements and associated costs. The economic strain on caregivers can lead to reduced workforce participation and productivity, potentially impacting overall economic growth.
  • Fragmented policy landscape: Only 55% are aware of the old-age pension scheme (IGNOAPS), 44% of the widow pension scheme (IGNWPS), and a mere 12% of the Annapurna Scheme. Only 12% of elderly people know about the Maintenance and Welfare of Parents and Senior Citizens (MWPSC) Act, indicating a significant gap in legal awareness and protection. Contributory pension schemes like the Atal Pension Yojana and Pradhan Mantri Shram Yogi Maan-Dhan have seen stagnant or reduced budgets despite increasing enrollments.

THE OPPORTUNITIES:

• • The Silver Economy: Projected growth from $7 billion to $48 billion by 2028, representing a compound annual growth rate of approximately 27%. This growth is driven by a rapidly expanding elderly population, expected to reach 346 million by 2050.
  • Senior care: The senior living housing sector is predicted to grow over 300% by 2030. Market penetration is expected to increase from 1.3% to 2.5% by 2030, indicating significant room for growth.
  • Job creation in geriatric care industry: The India geriatric care services market was valued at US$ 25.7 billion in 2022 and is expected to grow at a CAGR of 7.0% from 2023-2030. The Senior Able Citizens for Re-Employment in Dignity (SACRED) Portal aims to provide job opportunities for senior citizens, potentially creating a pool of experienced mentors and part-time workers in the geriatric care industry. The State Action Plan for Senior Citizens (SAPSrC) includes initiatives to create a pool of trained geriatric caregivers.
  • Empowering elderly as economic participants: Continuous digital literacy training is helping seniors manage their finances independently. The SAGE (Seniorcare Ageing Growth Engine) Portal encourages entrepreneurs and start-ups to invest in the silver economy segment. Modern platforms extend beyond financial transactions, offering services from entertainment to mental health support.

GOVERNMENT INITIATIVES

Expansion of Ayushman Bharat Scheme for senior citizens: In September 2024, the Union Cabinet approved a significant Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) for senior citizens. All citizens aged 70 and above are eligible for free health insurance coverage of up to Rs 5 lakh per family per year, regardless of socio-economic status. This expansion will benefit around 4.5 crore families, including six crore senior citizens. Senior citizens within families already covered by AB PM-JAY will receive an additional top-up cover of up to Rs 5 lakh per year, exclusively for their use.

Indira Gandhi National Old Age Pension Scheme (IGNOAPS): The IGNOAPS, part of the National Social Assistance Programme (NSAP), provides financial support to elderly individuals living below the poverty line. Eligibility criteria include being 60 years or older and belonging to a household below the poverty line. The scheme offers monthly assistance of Rs 750 for those aged 60-79 and Rs 1000 for those 80 years and above, including a Rs 500 contribution from the state government.

National Action Plan for Senior Citizens (2019): The plan covers various aspects of senior citizens’ welfare, including financial security, healthcare, nutrition, shelter, and protection of life and property. It promotes active and productive ageing, intergenerational bonding, and skill development for seniors. The scheme encourages research and study on ageing-related issues and promotes the silver economy.

THE WAY FORWARD:

• • Strategic planning and intersectoral collaboration: A comprehensive national policy on aging that integrates healthcare, social services, and economic support. Collaboration between government agencies, healthcare providers, NGOs, and the private sector to create a holistic support system for the elderly. Investment in research and development to understand the unique needs of India’s aging population and develop innovative solutions.
  • Balancing challenges with opportunities: Develop and promote age-friendly products and services, creating new markets and job opportunities. Encourage entrepreneurship among seniors, leveraging their experience and skills. Invest in preventive healthcare and wellness programs to reduce the burden on the healthcare system and improve seniors’ quality of life.
  • Preparing for the “silver surge” to build an inclusive and resilient future: Invest in age-friendly infrastructure and urban planning to support aging in place. Develop a robust long-term care system that combines institutional, community-based, and home-based care options. Promote intergenerational programs and activities to foster social inclusion and combat ageism. Strengthen social security and pension systems to ensure financial stability for the elderly.
  • Adaptation of indigenous frameworks (e.g., ASHA workers model): ASHAs have evolved from link workers to multi-faceted community health workers, gaining community trust due to their accessibility and local acceptability. The ASHA model can be adapted to address the needs of the elderly by expanding training to include geriatric care and age-related health issues. Integrating technology for data collection and telemedicine consultations and developing a specialized cadre of ASHAs focused on elderly care.
  • Inspiration from global successes: Japan’s Community-Based Integrated Care System (CBICS) integrates healthcare, long-term care, housing, and livelihood support services within a community. It achieved significant results, including reducing the number of bedridden elderly to 1% of the population within a decade of implementation. Singapore’s ‘Aging-in-Place’ programs Community Care Apartments (CCAs) for home buyers aged 65 and above, offering senior-friendly features and scalable care services. The government aims to reduce the percentage of elderly spending their final days in hospitals from 61% to 51% by 2027.

THE CONCLUSION:

Increased budgetary allocations will effectively support these schemes. Better coordination between central and state governments will ensure seamless implementation. There will also be a greater focus on creating age-friendly infrastructure and promoting social inclusion of the elderly. Regularly monitor and evaluate these programs to ensure they meet the evolving needs of senior citizens.

UPSC PAST YEAR QUESTION:

In order to enhance the prospects of social development, sound and adequate health care policies are needed particularly in the fields of geriatric and maternal health care. Discuss. 2020

MAINS PRACTICE QUESTION:

“India’s demographic transition presents both challenges and opportunities for its socio-economic development.” Discuss the major challenges posed by an aging population and suggest strategies to harness the potential of the ‘silver economy’.

SOURCE:

https://www.deccanherald.com/opinion/how-well-is-india-prepared-for-the-silver-surge-3296861