According to Bloomberg’s Benchmark, there’s another Asian superpower that looks to unseat China as the world’s growth engine as China and the Asian Tigers are aging rapidly.
“The number of people aged 65 and over in Asia will climb from 365 million today to more than half a billion in 2020, accounting for 60 percent of that age group globally by 2030.”
By contrast, India’s workforce is set to climb to 1.08 billion—from 885 billion—within the next 20 years and hold that level for a half century, and will account for more than half of the increase in Asia’s workforce in the coming decade.
But this is more than just about a larger workforce. India’s workers will be better trained and better educated than India’s existing workforce. “There will be rising economic potential coming alongside that, thanks to an increased share of women in the workforce, as well as an increased ability and interest in working for longer. The consequences for business are huge,” said Anis Chakravarty, an economist at Deloitte India.
With India’s rise, the countries that will face the greatest challenges from their aging populations will be China, Hong Kong, Taiwan, Korea, Singapore, Thailand, and New Zealand, according to Deloitte.
However, the rise of India as an economic superpower isn’t guaranteed. If necessary frameworks that will sustain and promote growth aren’t in place, India’s population could see major unemployment which could lead to social unrest.
The full report is available on Bloomberg.