Question – Explaining the concept of silver economy, mention the steps the government should take to strengthen it. – 17 December 2021
Answer – Silver Economy: The silver economy is a system of production, distribution and consumption of goods and services aimed at harnessing the purchasing power of older and senior people and meeting their consumption, living and health needs.
The elderly population in India is expected to triple from 104 million in 2011 to 300 million in 2050, accounting for 18% of the total population in 2050. This ageing population will need new and specialized services, which can be met by promoting Silver Economy.
Initiatives for Silver Economy:
- Government is taking various steps to promote the idea of Silver Economy.
- Based on the recommendations of the Expert Group on the Silver Economy, the SAGE initiative has been launched to promote private enterprises that bring innovation in products and processes that benefit the elderly.
- SACRED portal was recently launched by Vice President M Venkaiah Naidu to connect senior citizens with job providers in the private sector.
Initiatives for the Elderly in India:
- SACRED PORTAL
- SAGE (Senior Care Aging Growth Engine)
- Elder Line (All India Toll Free Number for Elderly Assistance)
- Integrated Program for Older Persons (IPOP)
- Rashtriya Vayoshri Yojana (RVY)
- Indira Gandhi National Old Age Pension Scheme (IGNOAPS)
- Pradhan Mantri Vaya Vandana Yojana
- Vayoshreshtha Samman
- Maintenance and Welfare of Parents and Senior Citizens (MWPSC) Act, 2007
Further, several steps are needed to be undertaken to strengthen the silver economy:
- Addressing the health, mental health challenges once elderly retire: Due to existing socio cultural norms, retirees in India tend to go into a shell, which further aggravates their health Thus, businesses that offer geriatric health services should be encouraged.
- Catering to the ‘retiree job market’ and creating opportunities: Retirees with good mental and physical health should be provided re-employment opportunities on favourable working conditions befitting their age. They should also be re-skilled and encouraged to take up new responsibilities in the formal sector.
- Recognising ‘senior care’ as a sector: To attract investment, senior care needs to be recognised as a sector with appropriate regulations, policy support, tax structures, availability of subsidised financing, and appropriate governance mechanisms.
- Tax incentives: Expenses on senior care solutions (like home care, care homes etc.) should be exempted of any taxes to enable faster penetration of such products and services.
- Providing access to low-cost funding: Currently, businesses find it difficult to raise funds for development of senior living communities. Lower financing costs and innovative models of finance would allow for more affordable senior living and senior care projects.
- Preferred status for land allocation and payments: Availability of land at lower prices than market prices and the option of staggered payments at lower interests would also help in keeping the cost of living arrangements at an affordable level and will help in removing entry
As India is poised to witness a surge in its senior population, it is important to promote social entrepreneurship to accelerate the growth of the silver economy. Governments, businesses, and individuals must work together to adapt policies and behaviour to promote the silver economy and ensure individual and national fiscal sustainability as the population starts ageing.
