Telangana heading to join ageing States; people above 60 years rose from 10.1% to 12.5% in a decade

Telangana is inching towards becoming an ageing State where people over 60 years form 15% or above of total population

Telangana is slowly heading to join those categorised as ageing States in the coming few years if the observations made in a recent study are any indication.

The share of people above 60 years in the total population has been on the rise since the formation of the State. From 10.1% in 2016, population of people above 60 years has increased to 12.5% in 2026 and is likely to reach 14.5% by 2031, closer to becoming an ageing State where 15 and above per cent of the population is above 60 years.

According to the “State Finances – A study of budgets 2025-26” released by the Reserve Bank of India (RBI) recently, Telangana — which is currently in the intermediate stage insofar as its demographic profile is concerned — is likely to register 17.1% of its total population above 60 years by 2036 thus joining the ranks of Tamil Nadu and Kerala categorised as ageing States.

Population ageing becomes a dominant outcome, placing unprecedented demands on public resources while shrinking the working-age tax base that sustains them. Youthful states have a wider window of opportunity benefitting from expanding working age population and stronger revenue mobilisation. “In contrast, the window is getting narrower for the ageing States, facing fiscal pressure arising out of shrinking tax bases and rising obligations from committed expenditure,” the report said.

Along with ageing is the dependency ratio, the ratio of population aged 60 years and above relative to the working-age population between 15 and 59 years, resulting in high social sector expenditure obligations. The old age dependency ratio in Telangana has been on constant rise from 15.2% in 2016 to 18.4% during the current year and this is set to reach 21.5% in 2031 and 25.7% by 2036.

The differential fiscal pressure arising out of divergent age structure calls for forward-looking policies incorporating population dynamics and the related fiscal challenges. Going forward, intermediate States may balance growth priorities with early preparation for ageing and ageing States may enhance revenue capacity alongside healthcare, pension and workforce policy reforms.