Introduction

India’s population crossed 1.4 billion in 2024, making it the world’s most populous country. While population growth can be a strength, unchecked growth creates deep social, economic, and environmental challenges.

Implications of Population Growth

A rising population increases demand for jobs, food, housing, education, healthcare, and infrastructure. Population growth increases poverty, illiteracy, health issues, and urban slums. According to NITI Aayog, India needs to generate nearly 10 million jobs annually to keep pace with its youth entering the workforce. Unemployment and underemployment remain pressing issues. Overpopulation also puts immense pressure on natural resources, leading to environmental degradation, water scarcity, and pollution.

India’s population is young, with over 65% below the age of 35. If this demographic is skilled and employed, it can drive innovation, consumption, and GDP growth. But if not managed well, it may lead to social unrest and economic stress.

Population growth expands the need for financial services like savings, credit, insurance, and pensions. It also supports the government’s financial inclusion agenda through schemes like Jan Dhan Yojana, PM-KISAN, and Mudra loans.

Banks play a vital role by offering credit to MSMEs, promoting rural banking, and providing digital banking solutions. However, overpopulation can also raise risks such as loan defaults, inadequate financial literacy, and rising NPAs in weaker sections.

Way Forward

Managing population growth requires long-term planning. India must invest in health, education, and skill development while encouraging population stabilization measures. Banks must play a proactive role in supporting economic and social development through technology-driven, inclusive, and sustainable financial services.