Fresh urgency on pension reforms

The Union government needs to step in and lead the next round of pension reforms, which are now in danger of unravelling

Recent data releases show significant movement on the Indian demographic transition. The share of the youth (aged 15-29) has dropped to 26.7 per cent in 2021 and is projected to go down to 22.6 per cent by 2036. A striking feature of India’s population is that projections of the demographic transition have routinely proved to be on the lower side; the transition has always materialised at a higher pace than was anticipated. The pandemic may well induce a further deceleration in births.

“Demographics is destiny” in many dimensions of thinking about India’s future. On the problem of old age income and