The phenomenon of ‘demographic dividend’ of a country relates to

The 'demographic dividend' refers to the economic growth potential resulting from shifts in a population's age structure, specifically when the share of the working-age population is larger than the non-working-age share [1]. This phenomenon occurs during the demographic transition as fertility and mortality rates decline, creating a generational 'bulge' that eventually enters the productive labor force. In India, this dividend is characterized by a rising ratio of the working-age population (typically defined as 15-64 or 20-59 years) relative to dependents [3]. This shift can lead to a boost in economic productivity and per capita income because there are more people with the potential to be productive and contribute to the economy compared to those they must support [4]. Consequently, the dividend is fundamentally related to an increase in the working-age population rather than just total population size or sex ratios.

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Recent demographic trends > p. 259
2. [3] https://www.pnas.org/doi/10.1073/pnas.1820362116
3. [4] https://en.wikipedia.org/wiki/Demographic_dividend