Impact of Ageing Population on Labour Productivity and Economic Growth of India

Over the past few decades the age distribution of India?s population is shifting towards older workers and this process is going to accelerate in the year ahead. This paper studies the impact of ageing population on labour productivity and economic growth of India. For analyzing the impact of labour productivity the seminal work of James Feyrer is taken as reference. The study examines decadal data from 1991 to 2019 for India, U.S.A., Japan and Europe. We find that elderly participation in labour force has a positive influence on labour productivity which suggests that harmful effect of ageing can be mitigated by more active participation of elderly in the labour force. We also find that there is a positive impact of ageing population in short runs while this impact turns out to be negative in the long run.