How India’s demography influences jewellery sales!

In April 2023, India became the most populous country in the world with 1.4bn population. Not only is the population extensive, but its demographic structure is likely to confer significant economic benefits. Unlike many countries around the world, the Indian population is young and expected to remain so for many years.

Today, the median age across the country is just 27 and it is forecast to remain below 35 for the next decade. At the same time, the dependency ratio has been shrinking fast as the working age population (aged between 15 and 64) has grown more rapidly than the dependent population (aged below 15 and above 64).

Emerging more than a half a century ago, this trend has become particularly marked over the past 20 years and it is expected to continue in a similar vein until 2040. As such, the working age population is expected to grow by roughly 7mn per year between 2021 and 2041. This presents major opportunities for India. As research from the Reserve Bank of India (RBI) indicates, growth in the working age population and participation in the labour force are key determinants of economic growth. This suggests that India is set for a period of strong economic expansion, rising incomes and a growing middle class – all of which are conducive to rising gold demand.

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