Demographic Dynamics of South Asia

The composition of the population and labour force in the South Asian region has changed notably during the last several decades. This chapter examines the general demographic trends and the effects of population growth on economic development in South Asia. Overall, there has been a declining trend in population in South Asia, where the average annual population growth rate during 1995–2005 was 1.8 per cent, and in 2015–2022, it was 1.0 per cent per annum. A similar trend is seen in Southeast Asia during the same period. The declining fertility rates in the region are the main reason for the drop in population growth rates. Rapid urbanization, increased female labour force participation, increased female median age at marriage, and higher costs of raising children, as well as government policies on curbing population growth, have substantially contributed to the declining fertility rates in the region. In addition, there have been notable structural changes in labour force participation in all these countries, where the labour force participation in the agriculture sector has substantially dropped while that in the service sector has increased in all countries. South Asian countries have substantially lower female labour force participation than Southeast Asian countries.