Consequences of the Changing Demographic Trends in India

Abstract

The main purpose of this research paper is to investigate the implications of changing demographic trends in India on its economy and the standards of living (SOL). The study used the bound testing approach to co-integration ARDL for analyzing the relationship between the variables. Because of the changing demographic trends, India will face changes in sex ratio, dependency ratio (both young and old-age), increasing aging population and deterioration in the standard of living due to rising inflation rate and population growth. In the coming decades, there will be growing number of senior citizens, a shrinking number of young people and feminization of the society. More population leads to more production of goods which in turn leads to more pollution, therefore, environment friendly policies should be formulated and implemented to reduce the negative externalities in the country.