United Nations announced on Monday, April 24, 2023, that India will be the world’s most populous country by the end of this month. The milestone raises questions about whether India can repeat the economic success that has made China central to the world’s economy and a leading global power.
The news comes at a moment when India is promoting itself as a rising international player as the host of this year’s G20 Summit. The country is also becoming a more attractive destination for multinational companies seeking to reduce their reliance on China.
By the end of April, India’s population is expected to reach 1.425 billion, which means it will match and then surpass mainland China’s, the U.N.’s Department of Economic and Social Affairs said in a press release. The forecast is based on their latest estimates of global population.
Another U.N. report last week projected that India would have 2.9 million people more than China by mid-year. The Indian government, which has not done a census since 2011, has not officially commented on the estimates.
India and China are neighbors and have a complicated relationship, including robust trade ties and a long-running border dispute. The United States and its allies increasingly see India, the world’s largest democracy, as a counterweight to China.
However, their interests do not always align. India, unlike much of the West, has refrained from condemning its Cold War ally Russia over its war in Ukraine, instead adopting a neutral stance even as India’s purchases of Russian crude have soared.
Observers say India’s sheer size, and its young population, give it the potential to replicate China’s economic trajectory. Young workers who flooded into China’s cities to take factory jobs starting in the 1990s were an essential ingredient in the boom that saw China become the world’s second-largest economy.
China’s population peaked in 2022 and has since started to fall. By the close of the century, its population could drop below 1 billion, the U.N. said. The country’s elderly population is swelling while its birth rate is still plunging, from 1.7 babies per woman in 2017 to 1.2 in 2022, according to U.N. data.
By contrast, India has the world’s largest young population, a higher fertility rate, and has seen a consistent decrease in infant mortality. Experts caution against alarm about overpopulation, however, as the country’s fertility rate has been steadily falling, from over five births per woman in the 1960s, to two in 2022.
Historic reforms in the 1990s spurred spectacular growth and India’s $3 trillion economy is the fifth largest in the world today as its high-skilled sectors have soared.
Economists Warn About India’s Unemployment Rate
Economists warn that even as India’s GDP has surged, so has joblessness. About 80% of Indian workers still toil in informal jobs, which are often precarious, low paid, and offer little to no benefits.
The country’s vast population also means that many challenges play out on a huge scale, whether it’s grappling with the growing threat of climate change, disparities between its urban and rural populations, a shrinking number of women in the workforce, or a widening religious divide.
Brahma Chellaney, a Professor of strategic affairs at the Centre for Policy Research, opined, “For this century to belong to India, it must make the most of its demographic advantage.” “China’s demographic crisis is timely for India’s growth but only if it can find enough good quality employment for its teeming youth,” the Professor added.
India’s economy is still far behind China’s. In 1970, the two countries had nearly equal per capita incomes, but today, China’s gross domestic product is $12,556 per person, compared to India’s $2,256, the 2021 World Bank data stated.
