19 Jan 2023

Impact of declining birth rate of China

China’s Declining Birth Rate, It’s an impact on the economy of China and India.

As per the data released by The National Bureau of Statistics (NBS), China reported a decline in the birth rate for the first time in six decades. China’s population stood at 1.4118 billion - which fell by 8,50,000 from 2021..

Reason for the decline in population

Seven years after China began ending its one-child policy limiting population growth, women in China are still choosing to have fewer children or opting to have them later in life. YuWa Population Research Institute has calculated that China is one of the world's most expensive places for child-rearing; the average cost of raising a child to age 18, as of 2019, is $76,629 – or 6.9 times China's per capita GDP that year. (In the U.S., the figure was 4.11 times per capita GDP.)

Source: https://www.usatoday.com/story/news/world/2023/01/17/china-population-decline-birth-rate-global-economy-impact/11066270002/


How will this demographic change impact India?

China's declining population could have a variety of impacts on India, both positive and negative. Some potential effects include:

  • Economic: China's aging population and declining birth rate could lead to a reduction in the number of workers and consumers, which could slow down its economic growth. This could create opportunities for India to increase its exports to China and potentially attract foreign investment. On the other hand, a weaker Chinese economy could also negatively impact India's exports and economic growth.
  • Demographic: India's population is projected to surpass China's population in the next few years, making it the world's most populous country. This could give India a demographic advantage in terms of a larger and potentially younger workforce. However, India will also have to address the challenges of providing education, healthcare, and employment opportunities for its growing population.
  • Geopolitical: China's declining population could lead to increased competition for resources and markets, as the country looks to maintain its economic and military power. This could lead to increased tension and competition between China and India, particularly in regions where the two countries have overlapping interests.
  • Flow of money: As China's population ages, more Chinese citizens may seek to retire or invest in other countries, including India. This could bring new opportunities for investment and trade..


It's important to note that these are just some potential impacts and that the actual effects will depend on a variety of factors, including the rate of population decline, economic and social policies, and international relations.


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