Blitz Bureau
NEW DELHI: India often projects its demographic dividend through the lens of its youth, with over 65 per cent of the population below the age of 35. But hidden in plain sight is another powerful demographic trend — the rise of the ‘silver economy.’
By 2050, India will have over 300 million people above the age of 60, nearly a fifth of its population. This is not just a social challenge but an economic opportunity waiting to be tapped.
For decades, Indian business has underplayed the economic agency of its seniors. Older citizens were viewed as dependents, not consumers. That assumption is outdated.
Rising life expectancy, better healthcare, and higher household savings mean many seniors today are healthier, wealthier, and more aspirational than the generation before them. Far from retreating into retirement, a large section of India’s elderly are active participants in consumption, investment, and even entrepreneurship.
The purchasing power of seniors is particularly significant. According to UN projections, India’s elderly population will rise from 149 million in 2022 to over 300 million by 2050. If even 30 per cent of these seniors spend Rs 10,000 every month on discretionary goods and services, that translates into a Rs10 lakh crore annual market — larger than India’s entire FMCG sector today. Clearly, this is a segment that businesses can no longer afford to ignore.
Globally, businesses have already spotted this trend. Japan, where nearly 30 per cent of the population is above 65, has built a silver economy worth US$1 trillion annually. Companies there design elder-friendly convenience stores with wider aisles and softer lighting and even robotic pets to provide companionship to seniors living alone.
Europe too has pioneered health-tech startups, specialised insurance, and retirement housing. India is still playing catch-up, but the signs are emerging.
Take healthcare, for instance. The growth of geriatric hospitals, home healthcare services, and telemedicine platforms is an early acknowledgment of senior citizens as a distinct market.
Similarly, in real estate, retirement communities and assisted living projects are slowly gaining traction. In finance, there is scope for designing products that go beyond fixed deposits and annuities — like health-linked investment plans or low-risk mutual funds tailored for seniors’ needs.
Then there is travel and leisure. A Bengaluru-based travel startup recently reported that 20 per cent of its premium holiday bookings in 2023 came from senior citizens, many of whom booked online themselves without relying on younger family members.
This reflects a broader shift. A 2024 Internet and Mobile Association of India report showed that over 35 per cent of Indians above 60 use smartphones daily, whether for payments, video calls, or OTT content. Seniors are streaming, shopping, and transacting digitally in ways unthinkable a decade ago.
But businesses must approach this market with sensitivity. The silver economy is not monolithic. Urban seniors with high disposable income are vastly different from rural elderly struggling with pensions. Products and services must cater to this diversity. Moreover, marketing needs a shift. Too often, advertising stereotypes the elderly as frail or dependent. Instead, brands must project them as active, empowered decision-makers.