According to a new RBI report, Kerala and Tamil Nadu will be “ageing States” by 2036 because their elderly populations will exceed 22% and 20%, respectively. In response, the RBI has advised ageing States to “rationalise” their subsidies to afford rising pension costs and youthful States to “invest heavily in human capital”. But how mindful is the RBI’s fiscal advice of the political undertones? Research has shown that ageing in India disproportionately affects women, who often live longer but with fewer financial assets. Second, the youthful States must build healthcare and pension services now to avoid fiscal shocks if and when the replacement fertility rate drops.

Source: The Hindu January 27, 2026 07:44 UTC