Discuss the issues arising from demographic transition in southern states and their impact on socio-economic development and policies.

Issues of demographic transition in Southern states manifest in multiple ways: (1) Fall in fertility/working age population leads to lack of built-in labour force, resulting in slow economic growth and reluctance of MNCs like Appa to establish manufacturing assembly units. (2) Large burden of old age, social security & pensions creates state fiscal deficit due to increased revenue dependent on social security policies such as Vatsalya Yojana and Vayantri Yojana. (3) Capital decline occurs due to productivity decline, as increase of old population leads to decline in organizational growth in formal sector/capital maintenance.

Impact on Social Policies: Political participation from southern states in parliament will decline. Southern state policies will take a backlog due to lack of representation at national level. Policies need to be made to help & advise in their sustenance. Updating inclusive policies will take backseat.

Negative impacts include: (4) Entrepreneurship of youth will be affected and shift to northern states. Since young population are risk-taking & enthusiastic for new start-ups, southern states shall suffer. India being the 5th largest startup hub in world will face headlock.

Positive role of low fertility & aging population:

Rise in standard of living occurs due to better economic prospect & penalization of social security, allowing better health, water, infrastructure to be made available.

Rising silver economy due to aging dividend represents opportunity. Old age when produce can engage in mentoring through experience-based knowledge to millennials and learn from their contribution to facilitate well-based old learning.

Birth control can leverage social mobility through inclusive solid public policies.

India's issue: potential in form of its demographic dividend. India's high age dependency ratio will be a major issue of all demographic divided [distribution] among class through varying [demand]. As proposed Mumbai competes vibrantly, geography determines economic [growth].