Every fifth person in India will be 65 years old by 2050 from every 10th now, which underscores the challenges posed to older people if they delay their retirement planning, Chairman of the Pension Fund Regulatory Development Authority (PFRDA) Deepak Mohanty said in his convocation address last week to the fresh graduates of the Eastern Institute for Integrated Learning in Management (EIILM), Kolkata.

“While our young population is contributing to growth, the window is going to shut rapidly with ageing. The dependency ratio between the old and working-age population will increase. This will slow down the economic growth rate, as we see around us in ageing societies with higher per capita income. There is also a social churn with an increasing turn towards nuclear families. So, unless we prepare for old age social security now, it will be an increasing challenge,” Mohanty said.

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Time To Fix The Roof

Mohanty called for “fixing the roof when the sun is shining.” He cautioned the graduates that they will have to make more complex decisions in their professional and personal lives. The PFRDA chairman said, “Some skills you have acquired, some you will learn, and some circumstances will teach you. Improve your financial literacy to enhance your financial well-being.”

He said the business world is not merely about profit margins and market share; it is about fostering meaningful connections, inspiring change, and making a positive impact on society.

Mohanty urged the young audience to follow their passions, where, he says, lies the “true essence of success and fulfilment”, and continue to inspire, innovate, and lead with courage and compassion as they step out of the university into professional life.

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Journey Towards A Developed Country 

Mohanty said the Indian economy has emerged stronger from the pandemic, posting real GDP growth of 9.7 per cent in 2021-22 against a decline of about 5.6 per cent in 2020-21. The projected growth trend of 7 per cent could be sustained through the financial year 2024-25.

He said, “With a per capita income of around $2,500, we are a lower middle-income country, per the World Bank classification. With sustained GDP growth, India for sure will progress to an upper middle-income country with per capita income of upwards of $4,200 in the next decade.”

India is the world’s fifth-largest economy, with a GDP of $3.7 trillion in 2023-24. With sustained growth, it could emerge as the world’s third-largest economy, with a GDP of over $5 trillion by 2026-27.

“Of course, nothing is given. We need to persevere with the ongoing effort to develop our physical and social infrastructure; continue with reform of our labour, product and financial markets; strive to be an innovative society harnessing digital and green technology; invest in education to develop requisite skills; and embrace competition,” Mohanty said.

Mohanty congratulated the new graduates, saying, “This is an interesting time for youngsters like you to partake in our national progress. It will be difficult for our country to attain the desirable height without you rising to your potential.