📷 Image: Wikimedia Commons / Ministry of Finance of India
Business
Moody's warns India will become 'aged' society by 2040 as wealth lags
✍️ NDTV
🗓 01 Oct 2026, 05:58 AM
👁 9
Moody's analysis projects India will reach an 'aged' demographic profile within 16 years, outpacing its rise to high‑income status.
Moody's Investors Service released a demographic outlook indicating that India’s median age will rise sharply, reaching the threshold of an 'aged' society by around 2040. The agency notes that the country’s transition to a high‑income economy is expected to lag behind this demographic shift, creating potential fiscal and social challenges.
According to the report, the proportion of people aged 65 and above will increase from roughly 6% today to over 12% within the next decade and a half. This rapid ageing is driven by declining fertility rates and rising life expectancy, trends that are outpacing the growth in per‑capita income.
Moody's cautions that the ageing profile could strain public finances, especially pension systems and healthcare spending, unless policy measures are taken to boost productivity and encourage higher savings. The agency recommends reforms in labour markets and social security to mitigate the impact.
The findings arrive as India continues to pursue its goal of becoming a $5‑trillion economy, highlighting that demographic dynamics will play a crucial role in shaping the nation’s economic trajectory.
Analysts suggest that addressing the ageing challenge will require coordinated efforts between the government, private sector and civil society to ensure sustainable growth.
According to the report, the proportion of people aged 65 and above will increase from roughly 6% today to over 12% within the next decade and a half. This rapid ageing is driven by declining fertility rates and rising life expectancy, trends that are outpacing the growth in per‑capita income.
Moody's cautions that the ageing profile could strain public finances, especially pension systems and healthcare spending, unless policy measures are taken to boost productivity and encourage higher savings. The agency recommends reforms in labour markets and social security to mitigate the impact.
The findings arrive as India continues to pursue its goal of becoming a $5‑trillion economy, highlighting that demographic dynamics will play a crucial role in shaping the nation’s economic trajectory.
Analysts suggest that addressing the ageing challenge will require coordinated efforts between the government, private sector and civil society to ensure sustainable growth.