Silver Economy | 22 Aug 2025

Source: FE 

Why in News?

World Senior Citizen Day is celebrated every year on 21st August to acknowledge the contributions of senior citizens, raise awareness about the challenges they face globally, and highlight the growing importance of the silver economy.

What is the Silver Economy? 

• About: It refers to all economic activities, goods, and services catering to senior citizens. 
• Importance for India: According to the Technical Group on Population Projections (2020), India’s elderly population will rise from 103.8 million in 2011 (8.6% of the population) to 193.4 million by 2031. 
  • According to the United Nations Population Fund (UNFPA) India’s elderly population is set to double to over 20% by 2050, surpassing children (0–15 years) by 2046. Senior citizens are becoming key economic players, creating opportunities in healthcare, technology, insurance, housing, and wellness. 
• Main Drivers of Silver Economy Growth: 
  • Active Aging: India is moving towards active aging, where senior citizens are healthier, more independent, and seen as contributors rather than dependents. Professionals in the 45-64 age group are currently the wealthiest, making seniors a key consumer class. 
    • Unlike previous generations, they are increasingly participating in the workforce and adding greater value to the economy. 
  • Home Care Services: Over 75% of elderly in India suffer from chronic diseases, creating strong demand for home-based healthcare. 
  • Health Technology: Telehealth, remote monitoring, and wearable devices (fall detectors, GPS trackers, emergency alerts) are transforming elderly care. 
    • The global remote patient monitoring market alone is estimated to grow at a Compound Annual Growth Rate (CAGR) of 12.7% and reach Rs 56.94 billion by 2030. 
  • Ayush-based Services: There is a rising preference for Ayurveda and traditional medicine particularly for preventive care due to their minimal side effects.  
    • With growing demand for holistic health solutions, this sector holds strong potential for future growth. 

What are the Challenges in India’s Silver Economy? 

• Healthcare Gaps: Limited geriatric care facilities, high out-of-pocket expenditure, and low insurance coverage (only ~18% India’s seniors are insured) restrict access to affordable healthcare. 
• Financial Insecurity: A large share of elderly lack pensions or savings, especially in the unorganised sector, leaving them dependent on family support. 
• Digital Divide: Low digital literacy and limited access to technology hinder seniors from benefiting from telemedicine, e-commerce, or digital financial services. 
• Social Isolation: Breakdown of joint family systems, urban migration, and changing family structures increase loneliness and mental health issues among the elderly. 
• Policy and Infrastructure Gaps: Absence of age-friendly infrastructure (housing, transport, public spaces) and limited targeted policies for eldercare slow down growth. 
• Workforce Barriers: Despite active aging potential, age-based stereotypes and lack of flexible work models restrict employment opportunities for seniors. 
• Awareness and Accessibility: Limited awareness about health insurance, Ayush practices, and government schemes prevents seniors from accessing available support systems. 

What Reforms are Needed to Strengthen India’s Silver Economy? 

• Healthcare-Centric Reforms: Expand geriatric care services with a preventive, promotive, curative and rehabilitative focus. Promote health literacy among seniors and caregivers to encourage self-care and early interventions. 
  • Integrate senior care into Ayushman Arogya Mandir (AAM) for comprehensive elderly health coverage. 
• Financial Security Reforms: Design age-specific insurance products to reduce out-of-pocket spending. 
  • Expand pension coverage under Atal Pension Yojana (APY) to protect seniors, especially those from the informal sector. 
  • Promote reskilling and flexible work opportunities under SACRED Portal for the elderly to retain economic independence. 
• Social Inclusion & Support: Promote social engagement and peer-support networks to combat loneliness and mental health issues.  
  • Sensitise communities towards the needs, dignity, and sensitivities of elders. 
• Elder-Friendly Infrastructure & Housing: Develop age-friendly public spaces, housing, and transportation systems. 
• Digital Inclusion Reforms: Launch digital literacy campaigns specifically targeting seniors. Provide user-friendly technology platforms for health, finance, and social services. 
• Economic and Market Reforms: Encourage public–private partnerships under SAGE Programme for developing eldercare infrastructure and services. 
  • Incentivise silver economy startups through targeted funding and incubation support. 
  • Integrate the elderly into mainstream economic activity, both as consumers and contributors.