Economic impact of gain in life expectancy: a case study of India

Abstract

PurposeFew empirical studies examined the relationship between life expectancy and income in India. This study aims to examine the impact of life expectancy on economic growth in India by incorporating all the major states of India.Design/methodology/approachThis study is based on secondary data and includes 16 major states of India covering the periods 2000–2014. The author used panel fixed effect model (FEM) to examine the impact of life expectancy on economic growth.FindingsEmpirical analysis revealed a positive trend in life expectancy in India. In association with life expectancy, the author found continuous growth in the elderly population. The result of the FEM shows that gains in life expectancy positively affect economic growth in India. The empirical findings do not support any negative impact of life expectancy gains on economic growth.Originality/valueThis study is the outcome of the independent and original research work of the authors and contributes significantly to the literature on the demography–economic relationship. The findings of this study help the author to understand that life expectancy gain is in no way a constraint, rather the skill and experience of the workforce are crucial to determining economic growth.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2022-0422.