Budget 2024-25 is a Crucial Opportunity to Unlock India's Demographic and Gender Dividends says Poonam Muttreja. The Daily Eye #Newsdesk Reports. Photography: Vinta Nanda.

As Finance Minister Nirmala Sitharaman prepares to present the Union budget for the fiscal year 2024-25 on July 23, 2024, the Population Foundation of India (PFI) has emphasized the need for strategic investments to capitalize on India's demographic and gender dividends. This period is pivotal for India, given its substantial adolescent and youth population.

The upcoming budget should prioritize promoting adolescent health, increasing family planning awareness, and enhancing the capacities of health workers under the National Health Mission (NHM). On World Population Day, Health Minister JP Nadda highlighted ongoing efforts to improve family-planning services, including the availability of various contraceptive methods, adequate budget allocations, and ensuring a steady supply at health facilities and through community workers. “We welcome the honourable minister’s commitment to family planning and agree that the growth and development of a country are intrinsically linked to its population dynamics,” stated PFI in its press note. 

The National Health Policy 2017 recommends that government expenditure on health should reach 2.5% of GDP, while a High-Level Expert Group on Universal Health Coverage suggested 3%. Despite these recommendations, India still falls short. According to 2022 World Bank data, India ranks 174th out of 190 countries in terms of current health expenditure as a percentage of GDP. Additionally, the budget for family welfare awareness has seen a decline, affecting critical initiatives for young people.

The government's introduction of new long-acting reversible contraceptives, such as injectables and implants, is commendable. However, this must be supported by increased budgetary allocations to ensure their availability at all public health levels and investments in social and behaviour change communication to generate demand for health services, including family planning. The budget for public awareness and mass communication under the Family Welfare major head decreased by 8.6% from Rs. 40 Crores in 2022-23 to Rs. 36.56 Crores in 2023-24.

Modern family planning methods are crucial for women to plan their families effectively and manage their work lives,”said Poonam Muttreja, Executive Director of Population Foundation of India. “With more than 24 million currently married women aged 15-49 years having an unmet need for family planning, it is imperative to expand access to these modern methods of contraception through adequate investments.”

India, with its 253 million adolescents, has an unprecedented opportunity to harness its demographic dividend by investing in their health, education, and employment skills. The Rashtriya Kishor Swasthya Karyakram (RKSK), initiated in 2014, aims to address the health needs of adolescents in areas such as sexual and reproductive health, nutrition, mental health, substance abuse, and gender-based violence. However, financial constraints have impeded its full implementation.

“Investing in the health and well-being of adolescents and women is not just a moral imperative but also an economic necessity. Ensuring our young population is healthy, educated, and skilled is essential for building a strong foundation for India's future economic growth and human development,” said Muttreja.

Empowering women, who constitute nearly half of the country’s population, is vital for realizing the “gender dividend.” As fertility rates decline, women have more opportunities to engage in the workforce. By investing in women's education and skills, this transition can generate a "gender dividend" similar to the demographic dividend.

“Celebrating the contributions of women and girls to families, societies, economies, and nations, India's progress could accelerate significantly with greater empowerment of women to make choices and enjoy freedoms, especially in reproductive and social justice,” said Muttreja.

Access to family planning impacts families economically through reduced fertility and improved health, influencing various aspects of their lives. Empowering women through entrepreneurship and higher education, especially in STEM fields, can drive significant socio-economic transformation. A recent World Bank Group report estimated a potential $172 trillion 'gender dividend' worldwide by narrowing gender disparities in labour earnings. “To enhance empowerment for women and girls, it is essential to narrow the digital gender gap. This requires designing digital solutions with active participation from women,” added Muttreja.

A holistic approach addressing women's life-cycle health needs can help India reap the gender dividend and accelerate its socio-economic transformation. According to the UNFPA’s India Ageing Report 2023, 20% of India’s population will be over 60 years old by 2050. Investing in social and health infrastructure for the elderly is crucial to harnessing the ‘silver dividend,’ including enhancing healthcare services, providing financial security, and creating an inclusive environment for the elderly.

The upcoming budget presents a crucial opportunity for India to leverage its demographic, gender, and elderly dividends by allocating necessary funds, ensuring a healthier, more inclusive, and empowered nation. “It is crucial that this budget allocates sufficient resources for improving health and family planning outcomes, thereby enhancing the well-being and unlocking the full potential of all Indians,” said Muttreja.