Advantages of increasing population in india
Answers
The consequences of a growth in a country’s population depend on its cause, size of population relative to optimum population and the rate of population growth.
Possible benefits of an increasing population are listed below:
i. If the population is above the optimum size, the country will be able to make better use of its resources.
ii. The size of markets will increase. This should enable firms to take greater advantage of economies of scale.
iii. There may be an increase in factor mobility if the rise has resulted from an increase in the birth rate or immigration. Expanding industries can recruit new workers to the labour force. These people are likely to be familiar with new ideas and methods. If this is the case, firms’ training costs will be reduced.
iv. Extra demand will be generated. This is likely to stimulate investment and this may lead to introduction of new technology.
v. A rise in the labour force presently due to net immigration and in the future, caused by a rise in the birth rate. Net immigration will bring in more workers. More children being born will increase the dependency ratio in the short term but in the long term, will result in more workers.