The Economic Advisory Council to the Prime Minister (EAC-PM) recently introduced the Quality of Life for Elderly Index. This indicator illuminates issues regularly overlooked: the challenges faced by India’s aging population. Given current trends, the elderly demographic is forecasted to grow from 7.5% in 2001 to an estimated 19.5% of the total population by 2050.
About EAC-PM and the Quality of Life for Elderly Index
The EAC-PM is a non-constitutional, non-statutory, independent entity that advises the government on economic matters, specifically the Prime Minister. At the EAC-PM’s request, the Institute for Competitiveness created the Quality of Life for Elderly Index. The Institute for Competitiveness is an international initiative based in India, dedicated to expanding and disseminating research and knowledge on competition and strategy.
The new index not only identifies regional aging patterns across Indian states but also evaluates the general aging situation in India. The National Elderly Policy classifies individuals aged 60 and above as elderly, marking the onset of life’s stage where productivity decreases and economic dependency increases.
The Structure of the Index
The Index comprises four main pillars: Financial Well-being, Social Well-being, the Health System, and Income Security. These are further divided into eight sub-pillars: Economic Empowerment, Educational Attainment & Employment, Social Status, Physical Security, Basic Health, Psychological Well-being, Social Security, and Enabling Environment. The Index aims to encourage healthy competition among states through fair rankings and underlines areas needing improvement.
Main Findings and Observations
Rajasthan and Himachal Pradesh were the top-ranked regions among states with elderly populations of more than 5 million and less than 5 million, respectively. In the Union Territory and North-East States categories, Chandigarh and Mizoram scored the highest.
The Health System pillar observed the highest national average, followed closely by Social Well-being. However, most states performed poorly on the Income Security pillar, indicating a major area for improvement.
Emerging Challenges
One of the main challenges of population aging identified in the report is the “Feminization of Ageing,” with significantly more women reaching older ages than men. Additionally, India’s weak social security mechanisms were highlighted; the country only spends 1% of its GDP on pensions.
The integration of the elderly into the economy, meeting their unique needs and enabling their contribution to society, is seen as an urgent necessity. Another crucial issue is the provision of healthcare services; as life expectancy in India increases, there is an emphasis on ensuring not just longer lives but healthier ones.
Related Government Initiatives
Various initiatives aimed at improving the quality of life of the elderly have been launched, including SAGE, IPOP, RVY, IGNOAPS, The Pradhan Mantri Vaya Vandana Yojana, Vayoshreshtha Samman, and the MWPSC Act, 2007. These cover a range of services from providing basic amenities to financial assistance and recognition of significant contributions.
On a global level, the Decade of Healthy Ageing has been endorsed by the World Health Assembly, and the 2030 Agenda for Sustainable Development is calling for inclusive progress that leaves no one behind, focusing especially on older persons.
A Changing Demographic Landscape
While India is often depicted as a young society set to reap the benefits of a demographic dividend, it is also experiencing rapid demographic transition leading to a “greying” problem. To ensure the wellbeing of older citizens, there is a call for reviving traditional social institutions like kinship and community bonding, and for communities to show increased sensitivity towards the elderly. With these measures in place, the country will be better equipped to support its growing elderly population.