fbpx

iasaarthi.com

Saarthi IAS logo

SILVER ECONOMY

March 30, 2023

Silver economy is the system of production, distribution and consumption of goods and services aimed at using the purchasing potential of older and ageing people and satisfying their consumption, living and health needs. It covers many products and services using different technologies, including home automation, sensors and connected objects. The sector deals with the heterogeneous and difference of consumption between working retirees and dependent older people, and evolves within a complex financing ecosystem that does not facilitate a clear definition of the sector stakeholders relationships.

UNDERSTANDING AGEING

At the biological level, aging is caused by the buildup of numerous types of cellular and molecular damage over time. As a result, physical and mental abilities gradually deteriorate, disease risk increases, and eventually, death occurs. These changes are not linear nor consistent, and they only tangentially correspond to an individual’s age expressed in years. Age-related diversity is not a coincidence. Aside from biological changes, aging is frequently linked to other life transitions including retirement, moving to a more suitable home, and losing friends and companions.

ELDERLY IN INDIA

According to the National Elderly Policy, the senior citizen is the Indian citizen who has attained the age of sixty years or above. States like Himachal Pradesh, Punjab, West Bengal and Maharashtra are already witnessing an ageing phenomenon. Though currently, India is a very young country, half of its population being under the age of 25. However, India’s current demographic dividend is going to shift, with the young population giving away to an ageing one by the 2030s.

India’s elderly population is on the rise, and as per surveys, the share of elders, as a percentage of the total population in the country, is expected to increase from around 8.6% in 2011 to almost 12.5% by 2026, and surpass 19.5% by 2050. There is a need to create a more robust eldercare ecosystem in India, especially in the post-COVID phase.

Shri M. Venkaiah Naidu said that he would prefer to call our senior citizens as ‘elders’ rather than ‘older persons’. Referring to the LASI report-2020, he said that more than 50% of senior citizens are active and therefore, it is very important to provide gainful employment opportunities to them for a happy, healthy, empowered and self-reliant life.

(MOSPI) “Elderly in India 2021” report mentions that the old-age dependency ratio is increasing in India at high level.The report mentions- The old-age dependency ratio provides a clearer picture of the number of persons aged 60-plus per 100 persons in the age group of 15-59 years and The projected dependency ratio for females and males is 14.8% and 16.7% respectively in 2021. 

SIGNIFICANCE OF ELDERLY POPULATION

“It is gracious to have old people full of vitality and endowed with wisdom in our society.” Elderly people have a wealth of life experience, both personally and professionally. The entire society use these lessons to shape a better world in the future. They serve as an important generational bridge for coming ones, providing support and stability to families and society at large. Grandparents in joint families provide a crucial link for transferring values and morals to the younger generation, thereby contributing towards the upbringing of better human beings and responsible citizens. Acknowledging seniors’ contributions would help to make ours society a more age-inclusive society that does not pit one generation against the other.

CHALLENGES FACED BY ELDERLY 

“Old people deserves a medal, a medal of existence which crowns their long-term victory against the cruelty of time and the dangers of this chaotic universe!”

India spends only 1% of its gross domestic product on pensions. India’s income support systems in their current form are not even capable of catering to the elderly when their proportion of the population is only 8.6%. Indian economy still needs to mitigate the fiscal costs that arise from a rising old-age dependency ratio.

Increased health-related expenses and the high prevalence of Non-Communicable diseases also create a financial problem for the elderly population. Further, other health-related issues like blindness, deafness, mental illness, heart disease, cancer, diabetes, etc. are highly prevalent.

Senior citizens are increasingly being neglected by the younger generation due to various reasons like western education, globalisation, nuclear family structure, etc. Social mores inhibit women from re-marrying, resulting in an increased likelihood of women ending up alone. The life of a widow is riddled with stringent moral codes, with integral rights relinquished and liberties circumvented. Social bias often results in unjust allocation of resources, neglect, abuse, exploitation, gender-based violence, lack of access to basic services and prevention of ownership of assets.

OPPORTUNITIES RELATED TO SILVER ECONOMY

New products and services will emerge in the market adapted to the requirements of older people leading to creation of jobs and therefore, the emergence of careers associated with the silver economy. The rise of the senior economy will encourage governments to take a position in solutions that improve health care and, therefore, the elderly’s independence.

PRESERVING OUR CIVILIZATIONAL HERITAGE – “OUR ELDERS” 

The elderly are the fastest growing, underutilized resource that humanity has to address many other problems. Re-integration of the elderly into communities may save humanity from mindlessly changing into a technology driven ‘Industry 4.0’ which futurists are projecting: an economy of robots producing things for each other. Healthy elderly citizens can share their wealth of knowledge with younger generations, help with child care, and volunteer or hold jobs in their communities. We must prepare ourselves for a broad based behavioural, socio-politico and economic changes for preserving our civilizational Heritage– “Our Elders”.

Silver economy is the need of the hour. Soon, India will see an enormous population of older people and need the mechanism to care for them. It’s all about having an integrated approach and searching at this complete issue from the oldster’s attitude. Providing them with an enabling environment and ensuring their constructive engagement is also not just the duty of state but also communities and individuals.

SAARTHI IAS