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Economics • Indian EconomyEasy

What does the term 'Demographic Dividend' refer to in India's economic growth context?

A. Economic growth potential resulting from shifts in a population's age structure, particularly a high share of working-age people.✓ Correct Answer
B. Financial dividends paid by public sector undertakings to the central government.
C. Subsidies disbursed to households based on family size and child education enrollment.
D. Tax revenues generated from metropolitan urban centers.

💡 Solution & Explanation

The demographic dividend describes the accelerated economic growth potential that arises when a nation's working-age population expands relative to its dependent age groups. It has no connection to fiscal dividends declared by public enterprises or household cash transfer schemes based on family size. Harnessing this potential requires robust investments in education, skill development, and healthcare to make the workforce employable.

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