Silver Economy - UPSC Key Notes & Top 25 Questions
The "Silver Economy" refers to the system of production, distribution, and consumption of goods and services aimed at using the purchasing potential of older and ageing people. As healthcare improves and life expectancy rises, this demographic segment is becoming a significant driver of economic activity globally.
In India, the elderly population is projected to rise dramatically, creating demand for specialized geriatric care, assistive technology, and financial products. The government is responding with initiatives to ensure dignity and security for seniors, transforming this demographic shift from a challenge into a potential economic asset called the "Longevity Dividend."
How is the topic "Silver Economy" Useful for UPSC & other exams
This topic is crucial for GS Paper I (Society - Population issues) and GS Paper II (Social Justice - Welfare schemes for vulnerable sections). For Prelims, focus on schemes like SAGE, PMVVY, and Rashtriya Vayoshri Yojana. It also aids in Essays regarding demographic transitions and healthcare infrastructure.
Quick Revision Note - Silver Economy
Keyword Definitions (UPSC / SSC / RRB / SEBI / IBPS / NDA Exams)
- Silver Economy: The market and economic activities related to the needs of people aged 60 and over. It includes sectors like healthcare, leisure, wellness, IT, housing, and finance, tailored specifically for senior citizens.
- Demographic Transition: The historical shift from high birth rates and high death rates to low birth rates and low death rates. This transition eventually leads to an ageing population, which necessitates the development of a Silver Economy.
- Longevity Dividend: The economic benefits that can arise from people living longer, healthier lives. It suggests that an older workforce can contribute to productivity and economic growth if enabled by proper policy and health infrastructure.
- Geriatric Care: A specialty of medicine and nursing concerned with the health and well-being of the elderly. As the Silver Economy grows, the demand for geriatric hospitals, caregivers, and home-health services increases exponentially.
- SAGE Portal: The "Seniorcare Ageing Growth Engine" initiative was launched by the Ministry of Social Justice. It serves as a one-stop access of elderly care products and services by credible start-ups, promoting entrepreneurship in the Silver Economy.
- Assistive Technology: Devices or software that help the elderly maintain independence. Examples include hearing aids, wheelchairs, and smart home devices. This is a high-growth manufacturing sector within the Silver Economy.
- Old Age Dependency Ratio: A demographic indicator measuring the pressure on the productive population. It is the number of elderly people (aged 60+) per 100 persons of working age (15-59 years). A higher ratio indicates a greater need for Silver Economy solutions.
- LASI (Longitudinal Ageing Study in India): A national survey of scientific investigation of the health, economic, and social determinants and consequences of population ageing in India. Its data is vital for policy formulation.
- Active Ageing: The process of optimizing opportunities for health, participation, and security in order to enhance quality of life as people age. It is the core philosophy behind the Silver Economy, viewing seniors as active participants, not burdens.
- Reverse Mortgage: A financial product that enables senior citizens to monetize their house property while retaining ownership and occupation. It provides a steady stream of income to meet their financial needs in old age.
- Respite Care: Temporary institutional care of a dependent elderly person, providing relief for their usual caregivers. This service is a growing part of the service sector within the Silver Economy.
Message to Aspirants
The challenge of an ageing population is also an opportunity for innovation. As you study this, think like a policymaker. How can we turn challenges into assets? Stay curious, analyze the schemes deeply, and keep moving forward with confidence!
Multiple Choice Questions - Silver Economy
1. Which Ministry launched the SAGE (Seniorcare Ageing Growth Engine) initiative?
a) Ministry of Health and Family Welfare
b) Ministry of Social Justice and Empowerment
c) Ministry of Finance
d) NITI Aayog
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Answer: b) Ministry of Social Justice and Empowerment
The initiative was launched to select, support and create a "one-stop access" of elderly care products and services by credible start-ups.
2. The "Madrid International Plan of Action on Ageing" (MIPAA) adopted in 2002 focuses on:
a) Child labor eradication
b) Climate change adaptation
c) Building a society for all ages
d) Digital currency regulation
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Answer: c) Building a society for all ages
MIPAA is a comprehensive global policy framework set by the UN to handle the challenges of population ageing and leverage the potential of older persons.
3. What is the primary objective of the "Rashtriya Vayoshri Yojana" (RVY)?
a) To provide monthly pension
b) To provide physical aids and assisted-living devices
c) To build old age homes
d) To provide free food grains
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Answer: b) To provide physical aids and assisted-living devices
It is a central sector scheme to provide aids like walking sticks, hearing aids, and glasses to Senior Citizens belonging to the BPL category.
4. Which year has the United Nations declared as the "Decade of Healthy Ageing"?
a) 2015-2025
b) 2021-2030
c) 2010-2020
d) 2025-2035
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Answer: b) 2021-2030
The UN Decade of Healthy Ageing (2021–2030) is a global collaboration to improve the lives of older people, their families, and the communities they live in.
5. "SACRED" portal is associated with which aspect of the elderly population?
a) Employment/Re-employment
b) Health Insurance
c) Travel subsidy
d) Legal aid
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Answer: a) Employment/Re-employment
Senior Able Citizens for Re-Employment in Dignity (SACRED) is an IT platform to bring Senior Citizens seeking jobs and employment providers on one platform.
6. Which of the following is NOT a pillar of the "Atal Vayo Abhyuday Yojana" (AVYAY)?
a) Integrated Programme for Senior Citizens (IPSrC)
b) State Action Plan for Senior Citizens (SAPSrC)
c) Universal Basic Income for all (UBI)
d) Rashtriya Vayoshri Yojana (RVY)
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Answer: c) Universal Basic Income for all (UBI)
UBI is not part of AVYAY. AVYAY is an umbrella scheme that subsumes various earlier schemes like IPSrC and RVY to improve the quality of life for the elderly.
7. The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is implemented solely by:
a) SBI Life
b) Life Insurance Corporation (LIC)
c) PFRDA
d) Ministry of Finance direct benefit transfer
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Answer: b) Life Insurance Corporation (LIC)
PMVVY is a pension scheme for senior citizens (60+ years) which guarantees a specific return. LIC is the sole institution authorized to operate this scheme.
8. In the context of the Silver Economy, what does the "Maintenance and Welfare of Parents and Senior Citizens Act, 2007" primarily ensure?
a) Free travel in trains
b) Legal obligation of children/heirs to provide maintenance
c) Right to vote from home
d) Tax exemption on all income
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Answer: b) Legal obligation of children/heirs to provide maintenance
The Act makes it a legal obligation for children and heirs to provide maintenance (food, clothing, residence, and medical attendance) to parents/senior citizens.
9. Which term describes the potential economic growth that can result from shifts in a population’s age structure?
a) Fiscal Deficit
b) Demographic Dividend
c) Silver Tsunami
d) Economic Stagnation
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Answer: b) Demographic Dividend
While usually associated with youth, a "Second Demographic Dividend" or "Longevity Dividend" occurs when accumulated savings of the elderly are invested in the economy.
10. The "Elder Line" (Toll-Free Number 14567) serves what purpose?
a) Food delivery
b) Emergency medical ambulance only
c) National Helpline for Senior Citizens for information and guidance
d) Pension withdrawal
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Answer: c) National Helpline for Senior Citizens for information and guidance
It provides information, guidance, emotional support, and field intervention in cases of abuse and rescue for homeless senior citizens.
11. According to the "India Ageing Report 2023", the elderly population in India is expected to double by which year?
a) 2030
b) 2050
c) 2040
d) 2060
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Answer: b) 2050
The report by UNFPA and IIPS suggests that the elderly population in India will more than double from 149 million in 2022 to 347 million by 2050.
12. Assertion (A): The dependency ratio in India is gradually increasing.
Reason (R): Life expectancy at birth has significantly improved due to better medical facilities.
a) Both A and R are true and R is the correct explanation of A
b) Both A and R are true but R is not the correct explanation of A
c) A is true but R is false
d) A is false but R is true
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Answer: a) Both A and R are true and R is the correct explanation of A
As people live longer (R), the number of elderly people relative to the working-age population increases, thus raising the old-age dependency ratio (A).
13. Assertion (A): The "Silver Economy" presents a huge business opportunity for the private sector.
Reason (R): The elderly population generally has zero purchasing power and relies entirely on state support.
a) Both A and R are true and R is the correct explanation of A
b) Both A and R are true but R is not the correct explanation of A
c) A is true but R is false
d) A is false but R is true
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Answer: c) A is true but R is false
A is true as new markets (healthcare, tourism) are opening up. R is false because a significant section of the elderly has accumulated savings, pensions, and assets, giving them substantial purchasing power.
14. Match the Scheme/Initiative with its focus:
| List I (Initiative) | List II (Focus) |
|---|---|
| A. Vayoshreshtha Samman | (i) Re-employment Portal |
| B. SACRED | (ii) Promoting Silver Startups |
| C. SAGE | (iii) National Award for Seniors |
| D. PMVVY | (iv) Pension Security |
|
Options: a) A-ii, B-i, C-iv, D-iii b) A-iii, B-i, C-ii, D-iv c) A-iii, B-iv, C-i, D-ii d) A-iv, B-iii, C-ii, D-i |
|
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Answer: b) A-iii, B-i, C-ii, D-iv
Vayoshreshtha Samman is an award. SACRED helps in re-employment. SAGE promotes startups. PMVVY is the pension scheme run by LIC.
15. Match the Organization/Report with its relevance to Ageing:
| List I (Entity) | List II (Relevance) |
|---|---|
| A. UNFPA | (i) Nodal Ministry in India |
| B. MSJE | (ii) India Ageing Report |
| C. NISD | (iii) Training and Research |
| D. HelpAge India | (iv) Prominent NGO |
|
Options: a) A-i, B-ii, C-iii, D-iv b) A-ii, B-i, C-iii, D-iv c) A-iii, B-i, C-ii, D-iv d) A-iv, B-iii, C-ii, D-i |
|
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Answer: b) A-ii, B-i, C-iii, D-iv
UNFPA publishes the Ageing Report. MSJE (Social Justice) is the nodal ministry. NISD (National Institute of Social Defence) handles training. HelpAge India is a well-known NGO.
Final Message for Aspirants
The Silver Economy is not just about healthcare; it encompasses finance, technology, housing, and social security. A holistic understanding of these interlinked sectors is essential for your exams. Keep revising the key schemes and definitions. Your preparation today builds your success tomorrow!
Top 10 Guessed Short Questions & Answers (UPSC Mains) - Silver Economy
1. Define the concept of "Silver Economy".
Silver Economy encompasses all economic activities related to the needs of older adults (60+). It involves products and services in healthcare, insurance, housing, and technology designed to improve the quality of life for the ageing population and utilize their purchasing power.
2. What is the significance of the "Longevity Dividend"?
The Longevity Dividend refers to the economic benefits gained by societies with increasing life expectancy. Healthy, active seniors can contribute to the workforce, volunteer, and consume services, thereby adding to the GDP rather than just being dependents on the social security system.
3. List major challenges hindering the growth of the Silver Economy in India.
Key challenges include low financial literacy among seniors, lack of specialized geriatric healthcare infrastructure, the decline of the joint family system, insufficient social security (pensions), and the digital divide preventing the elderly from accessing modern services.
4. How does the "SAGE" initiative promote the Silver Economy?
SAGE (Seniorcare Ageing Growth Engine) identifies and supports start-ups that develop innovative products for the elderly. By providing a dedicated portal, it creates a marketplace for "silver" products like health-tech and assistive devices, boosting the ecosystem.
5. Explain the role of "Assistive Technology" for the elderly.
Assistive technology, such as hearing aids, mobility scooters, and smart monitoring systems, compensates for functional limitations. It enables the elderly to live independently (Aging in Place), reduces the burden on caregivers, and reduces long-term institutional healthcare costs.
6. What is "Aging in Place"?
"Aging in Place" is the ability of older adults to live in their own homes and communities safely, independently, and comfortably, regardless of age or income level. The Silver Economy supports this through home modifications and home-care services.
7. Discuss the feminization of ageing in India.
Women in India generally have a higher life expectancy than men, leading to a higher number of elderly widows. This group is often more vulnerable due to lack of assets, financial dependence, and social isolation, requiring targeted policy interventions.
8. What is the "Old Age Dependency Ratio"?
It is the ratio of the number of elderly people (60+) to the working-age population (15-59). A rising ratio indicates increased pressure on the workforce to support the elderly through taxes and social security, necessitating a robust Silver Economy.
9. How does "Reverse Mortgage" help senior citizens?
It allows senior citizens who own a home to mortgage it to a bank in exchange for a regular monthly income or lump sum. The borrower can continue living in the house. It unlocks the value of "asset-rich but cash-poor" seniors.
10. What is the focus of the "Atal Vayo Abhyuday Yojana" (AVYAY)?
AVYAY is a central sector scheme aimed at creating an ecosystem for the elderly. It focuses on providing basic amenities, shelter (integrated homes), medical care, and creating inter-generational bonding to ensure a dignified life for senior citizens.
Advanced Reading - Silver Economy
The Silver Economy is an economy that is developing based on the needs of the elderly. This economy covers sectors such as health services, retirement planning, age-friendly housing, travel arrangements, food, immunization, and care services. This sector is expanding rapidly due to the increasing percentage of elderly people in the population.
In addition to improving the standard of living of the elderly, it is also paving the way for job opportunities, startups, and new technologies. Investments and opportunities in this sector are increasing in India, too. By understanding this economy and participating in it, we can get big economic benefits in the future. It is a new economic path focused on the elderly.
Summary Table on Silver Economy
| Key Area | Details |
|---|---|
| Definition | The economic sector is focused on meeting the needs of elderly people |
| Main Sectors | Healthcare, housing, retirement planning, travel, nutrition, technology |
| Importance | Addresses aging population needs; creates jobs, startups, and innovations |
| Opportunities | Home nursing, senior tourism, smart devices, fitness programs |
| Your Role | Promote dignity, inclusion, and build services or solutions for elders |
Why does the silver economy matter?
The number of elderly people is increasing: The proportion of people over 60 in the world's population is rising quickly. This is affecting the market.
- New business opportunities: New business opportunities are emerging in sectors such as health devices, health insurance, and senior travel packages.
- Change in society: Elderly people are becoming financially self-reliant through the silver economy.
What can you do in the silver economy?
In the silver economy, your role is to be a promoter of the well-being and social inclusion of older people. By providing information, advice, and resources, you can help them get better health care, financial planning, age-friendly technology, and lifestyle choices. At the same time, you support relevant enterprises and innovative projects to meet the growing needs of older people.
You also actively advocate respect and inclusion and raise society's awareness of aging issues. Your work helps to create a more friendly and sustainable social environment so that older people can live with more dignity and value. The silver economy is not only a challenge but also a development opportunity. Your participation will definitely promote active aging.
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How does the silver economy grow from helping older people?
There are many business opportunities in this sector. Apart from improving the lifestyle of the elderly, the silver economy offers opportunities for you to benefit financially. You will see noticeable growth in the following sectors:
- Healthcare services: Services like home nursing, telemedicine, and medical equipment rental are on the rise.
- Fitness and nutrition: Senior-friendly food items, supplements, and fitness programs are in demand.
- Senior tourism: Senior-friendly tour packages with safety measures are emerging as a business.
- Technology services: Smartphones, applications, and health monitoring gadgets that are useful for the elderly are in demand.
How is the silver economy growing in India?
The elderly population in India is increasing significantly. As a result, the government and the private sector are developing this sector in many ways. It will be useful for you to know about these changes.
- Healthcare schemes: Along with government health insurance schemes, private health institutions are providing special services to the elderly.
- Pension systems: The central and state governments are implementing several pension schemes for the financial security of the elderly.
- Startup opportunities: To encourage the youth, startups based on the needs of the elderly are expanding.
Silver Economy: Sectors, Business Opportunities & Products
| Sector | Opportunities & Products |
|---|---|
| Healthcare | Home nursing, telemedicine, geriatric clinics, wearable health monitors |
| Housing & Safety | Senior-friendly homes, grab bars, CCTV, smart alert systems |
| Travel & Leisure | Senior group tours, assisted travel, age-friendly destinations |
| Finance & Insurance | Pension plans, senior savings schemes, and health insurance packages |
| Fitness & Nutrition | Nutritional supplements, senior fitness programs, and physiotherapy |
| Technology | Voice assistants, easy-to-use smartphones, and health apps for seniors |
| Mental Wellness | Counseling services, community clubs, and virtual hobby groups |
| Support Services | Caregiver agencies, delivery services, and emergency helplines |
What do elderly people need most in the silver economy?
Some essential services are crucial for the elderly to be physically, mentally, and financially secure. These services make their daily lives easier. The following services are important:
- Health care: Doctor home visits, wake-up services, medical alarm devices
- Safety devices: Non-slip floors, handle grips, CCTV cameras
- Financial services: Investment plans specially designed for the elderly, senior citizen FDs
- Mental health: Counselling services to combat loneliness, social community platforms
How can you get ready for the silver economy?
By being aware of the silver economy, you can prepare for future needs in advance. It is important to know how you can leverage the opportunities in this sector.
- Study the needs of the elderly: analyze human relations, health needs, and safety aspects.
- Develop relevant skills: Learn in areas such as healthcare, soft skills, and communication.
- Explore job or business opportunities: Discuss opportunities in healthcare, travel, and technology sectors.
Conclusion
The silver economy is an important strategy to cope with the trend of population aging. It not only focuses on the needs of the elderly but also brings new opportunities for social and economic development. By developing age-friendly products, services, and technologies, the quality of life of the elderly can be improved while promoting employment, innovation, and social inclusion. In the future, the silver economy will become a key force in promoting sustainable development. We should actively participate in it and build a more caring, intelligent, and inclusive society.
Online Courses, Reference Books, & Websites
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