The population paradox in India

Wonderful article by Sunaina Kumar in THE INTERPRETER for the Lowy Institute.

https://www.lowyinstitute.org/the-interpreter/population-paradox-india#msdynttrid=JLdBTs_-HnNZRPTGkUBRWQGZleYD6CL9EmGS-LibtvE

India is growing in some states, declining in others – but rapidly ageing all over. Here are some elements of the “population paradox”:

1. In April 2023 when India reached 1,425,775,850 people, it surpassed China’s population to become the most populous country in the world.

2. India’s population is expected to grow for several decades and could peak at 1.7 billion by the 2060s, while China’s population is already in decline, according to UN estimates.

3. The total fertility rate in India has declined from 3.4 children per woman in 1992-93 to 2.0 children per woman in 2019-21.

4. Population in India will however continue to grow, concentrated mostly in the northern states of the country on the basis of demographic momentum, a phenomenon that results from a large number of young adults in childbearing years.

5. A north-south divide – population is growing in the north and declining in the south.

6. Compared to the north, the five southern states of India are economically more advanced and have been highly successful in slowing population growth by focusing on development and women’s empowerment.

7. India has one of the youngest populations in the world: 65 per cent of the country is under the age of 35.

8. By 2030 one out of every five working-age people in the world is projected to be Indian.

9. To reap the demographic dividend, India will need to add 7.85 million jobs every year until 2030.

10. Alongside this phenomenon, India like China is rapidly ageing, which is linked with declining fertility, falling mortality risks and higher life expectancy in both countries.

The speed and scale of ageing is a global concern but in a country like India, it is a race against time, as the country will need to get richer before it gets older.

Sorting out priorities given the many levels of this “paradox” is a task for Governments and policymakers.

Indians shaping as the big thing in Aussie tourism

Indian tourists to Australia on the rise, spending more and trending to younger

Australia is now the second highest in India for awareness, consideration and active planning for touring Australia, just below Dubai and surrounds. The “big three” for Indians are Dubai, USA and Australia.

What is exciting about the Indian traveller market is that there is an attitudinal shift – from saving to spending.

Arrivals from India for the year 2023 were at 396,000; which were on par with 2019 levels.

Indian travellers are spending more – spending A$2.2 bn on their Australia trips (an increase of 20% when compared with 2019).

In addition to the shift to spending, there is a generational shift: Indians are travelling at a much younger age.

In my home state of Victoria and the city of Melbourne, India was Victoria’s second largest tourism market by value in 2019 and is the fastest growing international visitor market to return to Victoria following the reopening of Australia’s international borders.

Factors of greatest importance to Indian travellers are safety/ security, beautiful natural environments and value for money.

Seven in ten Indian travellers are aware of Australia as a holiday destination, with half considering travelling to Australia within the next four years and one in five who are actively planning their holiday.

Australia is strongly associated by Indians with world class beaches/ coastlines/ marine wildlife, having different and interesting wildlife, having a good range of accommodation, being family friendly and having good infrastructure.

That’s why our tourism organisations, Austrade and State Government trade offices are placing such focus on promoting Australian tourism.

It’s and exciting future for Australia.

Trump’s “transactional and mercantilist” approach to trade will test India in 2025

India at risk as Trump’s trade policies do not distinguish between friend and foe.

One certainty of 2025 – the terms of trade are set to change.

For India, this presents a major economic risk.

Trump has made trade a big focus of his second term as President of the USA – he is expected to upend the $24 trillion world goods trade and possibly the $7.5 trillion services trade.

This puts at risk India’s largest export market – the US.

The US has also been an important supplier of capital.

The US consumes as much as a fifth of India’s exports —  led by two shiny new growth spots in phone manufacture and global capability centers — and is also among the biggest sources of fund flows, reports Bloomberg’s India Edition, written by Menaka Doshi.

Australia well knows that Trump’s trade strategies do not distinguish between friends and foes – as one of the USA’s closest defence allies, Australia was a major victim of Trump’s anti-China moves.

India could be hard hit this time around as he continues a “transactional and mercantilist” approach to trade.

India and Australia should be making the final negotiations on a trade deal a top priority.