Economic Survey Highlights Urgent Need for Structured Elderly Care Policies in India

New Delhi: India's rapidly aging population underscores the urgent need for a comprehensive policy framework to address the growing care demands of its elderly citizens, according to the Economic Survey tabled in the Parliament on Monday. Coupled with insights from a NITI Aayog position paper, the survey pointed out that the elderly care industry in India currently valued at USD 7 billion (Rs 57,881 crore) faces critical gaps in infrastructure, research and know-how for managing geriatric illnesses, monitoring mechanisms and emergency response systems.

The survey highlighted the importance of utilising the 'silver dividend' -- the untapped work capacity of individuals aged between 60 to 69 years. The Asian Development Bank (ADB) report, mentioned in the survey, suggests that integrating older people into the workforce through age-friendly jobs and lifelong learning could increase the gross domestic product (GDP) by an average of 1.5 per cent for Asian economies.

From a care perspective, suitable job roles for the older population can offer social engagement and financial security, while also reducing the overall care requirement. India's demographic transition indicates that care needs will expand significantly in the coming decades.

As of 2022, one-fourth of India's population is aged 0-14 years (approximately 36 crore persons), while one-tenth is above 60 years (around 14.7 crore persons), according to the United Nations Population Fund (UNFPA).

By 2050, the share of children is estimated to decline to 18 per cent (30 crore persons), while the proportion of elderly persons is expected to rise to 20.8 per cent (34.7 crore persons). Consequently, the country will need to care for 64.7 crore persons in 2050, compared to 50.7 crore in 2022.

The NITI Aayog position paper, also mentioned in the survey, emphasises the need for developing a care economy that supports increased female labour force participation (FLFP). The disproportionate burden of unpaid care work on women, including domestic work, childcare, and elderly care, restricts their ability to participate fully in employment opportunities, the paper said.

Research indicates that an additional hour of caregiving per day reduces women's labour market participation by 20 percentage points, with no effect on men. Addressing this imbalance is crucial for improving FLFP and promoting fairness and efficiency in the workforce, it added. The ADB's 'Ageing Well in Asia' report highlights the rising old-age dependency ratio, which is expected to increase from less than 20 per cent in 2022 to over 30 per cent by 2050.

This shift necessitates early dialogues around senior care to develop a future-ready elderly care policy. The India Ageing Report 2023 by UNFPA and the International Institute for Population Sciences underscores that a significant portion of the elderly population suffers from chronic diseases, functional limitations, depressive symptoms and low life satisfaction.

The report also notes the feminisation and ruralisation of the elderly population, which are linked with poverty, dependency and loneliness. Additionally, policies should emphasise on the importance of elderly people living in multigenerational households and support in situ (at home) aging through short-term care facilities like creches or daycare centres.

As India strives to become a developed economy by 2047, addressing the care needs of its aging population will be crucial, the Economic Survey stated. A structured elderly care policy framework can ensure that the nation is prepared to support its older citizens, promoting their well-being and leveraging their potential contributions to the economy, it said.