Union Budget 2025: Leveraging demographic trends for sustainable and inclusive development

New Delhi: As Finance Minister Nirmala Sitharaman prepares to present the Union Budget for 2025-26, a key area of focus should be leveraging India’s demographic trends to support long-term, inclusive development. The country’s population dynamics are crucial to shaping its economic trajectory, and the budget must prioritize policies that ensure sustainable growth across all age groups and genders.

India’s population is diverse, with an evolving age structure that goes beyond mere statistics. Demographic trends should guide long-term policy planning and program implementation, enabling initiatives that cater to the needs of the young, working-age, and elderly populations while fostering economic growth and social equity.

With over 253 million adolescents, India has a significant youth population that could drive economic growth. However, to unlock this potential, their health, education, and skill development needs must be adequately addressed. Programs such as the Rashtriya Kishor Swasthya Karyakram (RKSK) require increased investment to broaden their impact.

“Investing in the education, health, and well-being of adolescents is critical for building a strong foundation for India’s future,” said Poonam Muttreja, Executive Director of the Population Foundation of India. “A healthy, educated, and skilled youth population will shape India’s journey toward becoming a developed nation.”

Empowering women is central to sustainable development. Gender equality can significantly boost economic productivity, yet India continues to face challenges in this area. For instance, women’s labor force participation stands at only 37%, well below the global average. Reducing gender disparities in education, employment, and healthcare can unlock significant economic potential.

“True progress toward gender equality requires the active participation of men,” said Muttreja. “By promoting shared responsibility in family planning and health outcomes, we can create more equitable and harmonious households.”

India is also experiencing a steady increase in its elderly population. By 2050, over 20% of India’s population will be 60 years or older. This demographic shift demands urgent attention to policies that address the health, social, and financial needs of the aging population.

Preparing for this shift requires investments in geriatric care within the public health system, the development of robust social security schemes to ensure financial stability for the elderly, and infrastructure that supports active aging. “Caring for our aging population is not just a moral imperative but an investment in a society where every generation contributes to progress,” said Muttreja.

The Union Budget for 2025-26 presents a vital opportunity to align fiscal policies with India’s changing demographic landscape. Addressing the health, social, and financial needs of the aging population, investing in the education and well-being of youth, and advancing gender equality are essential areas for attention.