Synopsis

Is India's demographic dividend quietly turning into a demographic divide?

Our February edition of Market Musings is out — a monthly newsletter from Parameswara Iyer Krishnan, MD & CIO at Spark Asia Impact Equity Asset Management

We examine a quietly unfolding but consequential shift in India's growth story — the emerging demographic divide across states. While India remains a young nation in aggregate, several higher-income states are ageing far faster than commonly perceived. This demographic divergence overlaps with the K-shaped recovery and is being accelerated by technology and automation.

The newsletter discusses how ageing populations, AI-led disruption, labour productivity, and rising welfare pressures could influence India's macro environment, cost of capital, and sectoral outcomes. We also outline key investment implications, highlighting areas where productivity, automation, healthcare, insurance, and tech-enabled services are likely to be long-term beneficiaries.

As always, the objective is to question conventional wisdom and identify emerging trends that matter for capital allocation.

Read the full Market Musings February 2026 edition