PM's economic advisory panel flags demand surge for caregivers, seeks policy overhaul for sector

The Economic Advisory Council to the Prime Minister (EAC-PM) has flagged a major demand surge for professional caregivers in India, projecting the requiremen...

What Happened

The Economic Advisory Council to the Prime Minister (EAC-PM) has flagged a major demand surge for professional caregivers in India, projecting the requirement will surpass 30 million caregivers by 2050.
The Council has recommended a comprehensive policy overhaul of the care sector, including:
Creation of a dedicated fund for the care economy
Building a skilled caregiver workforce through structured training programmes
Redirecting Corporate Social Responsibility (CSR) funds under the Companies Act 2013 toward care projects — in health and social welfare categories
The recommendations reflect India's demographic transition: a rapidly growing elderly population that will require sustained professional care infrastructure.
Budget 2026-27 included a caregiver programme to train over 1.5 lakh multi-skilled caregivers, backed by a phased outlay of ₹980 crore over three years.
India's elderly population is projected to reach 347 million by 2050 — approximately 20% of the total population.

Static Topic Bridges

PM Economic Advisory Council (EAC-PM) — Composition and Role

The Economic Advisory Council to the Prime Minister (EAC-PM) is a non-statutory advisory body that provides economic analysis and policy advice to the Prime Minister.

Nature: Non-statutory (not established by law); constituted by executive order — its recommendations are advisory, not binding.
Distinction from statutory bodies: Unlike bodies such as the Finance Commission (Art. 280) or UPSC (Art. 315), which are constitutional/statutory, the EAC-PM has no fixed legal mandate and is reconstituted at the discretion of the government.
Current composition: Chaired by S. Mahendra Dev (former Vice Chancellor, Indira Gandhi Institute of Development Research). The Council includes full-time and part-time members with expertise in economics, finance, and public policy.
Functions: Advises the PM on macroeconomic trends, prepares economic analysis, reviews policy proposals, and publishes thematic working papers and reports on issues of national importance.
Recent reports: EAC-PM has published reports on income distribution, demographic dividend, state of the economy, and now the care economy — reflecting its broad policy advisory role.

Connection to this news: The care economy report is a policy advisory output of EAC-PM — it does not create law or mandate government action, but carries significant weight in shaping the policy agenda, especially when accompanied by budget provisions (as seen in Budget 2026-27).

The Care Economy — Definition and Gender Dimension

The care economy refers to the sector — both paid and unpaid — that involves the provision of care services for children, the elderly, the disabled, and the sick.

Unpaid care work: Globally, women perform approximately 75% of total unpaid care work (UN Women data). In India, the gender gap in unpaid care work is among the highest in the world, with women spending 5–6 times more hours than men on care activities.
Paid care economy: Includes professional caregivers, nurses, home health aides, crèche workers, anganwadi workers, and elderly care specialists.
GDP contribution: Unpaid care work is not captured in national income accounts (GDP), leading to a systematic undervaluation of women's economic contribution. Feminist economists argue that if unpaid care were valued at market rates, it would constitute a significant share of GDP (estimates range from 10–39% depending on methodology).
Care economy and the SDGs: Sustainable Development Goal 5 (Gender Equality) explicitly calls for recognition, reduction, and redistribution of unpaid care work.
India context: India's National Family Health Survey (NFHS-5) data confirms the disproportionate burden of care on women; the Time Use Survey (2019) by the Ministry of Statistics & Programme Implementation (MoSPI) quantified this gap for the first time officially.

Connection to this news: EAC-PM's call for a dedicated care economy fund addresses both the supply gap (insufficient trained caregivers) and the gender dimension (formalising and valuing care work currently performed informally, predominantly by women).

India's Demographic Dividend and Ageing Population

India's demographic profile is undergoing a dual transition — a narrowing window for the demographic dividend coinciding with a rapidly growing elderly population.

Demographic dividend: The economic growth potential that arises when the working-age population (15–64 years) is larger than the dependent population (children + elderly). India is currently in this window, which is projected to persist until approximately the 2040s.
Ageing trajectory: India's elderly population (60+) was approximately 138 million (10% of population) as of Census 2011 projections; expected to reach 347 million (~20%) by 2050.
Old-age dependency ratio: The ratio of the 60+ population to the working-age population will rise sharply post-2030, increasing fiscal pressure on pensions, healthcare, and social security.
National Policy for Senior Citizens (2011): India's existing policy framework for the elderly — focuses on financial security, healthcare, housing, and welfare; does not comprehensively address professionalised care workforce.
Longitudinal Ageing Study in India (LASI): The first nationally representative longitudinal study on health, economics, and social determinants of wellbeing among older Indians — provides the data foundation for care economy policy.

Connection to this news: The 30 million caregiver demand projection by 2050 is a direct consequence of India's ageing demographic trajectory. Without proactive policy intervention to train and deploy professional caregivers, the elderly population will face a severe care deficit.

National Skill Development Corporation (NSDC) and Skill India

Workforce development for the care sector falls under the ambit of India's skill development architecture.

National Skill Development Corporation (NSDC): A public-private partnership entity under the Ministry of Skill Development and Entrepreneurship. Functions as a catalyst for skill development by providing funding and support to private sector training providers.
Skill India Mission: Launched in 2015 under PM Kaushal Vikas Yojana (PMKVY) — aims to train millions of youth in job-relevant skills. PMKVY has multiple iterations (PMKVY 1.0, 2.0, 3.0, 4.0).
Healthcare Sector Skill Council (HSSC): A sector-specific body under NSDC that develops competency standards and certifications for healthcare workers, including caregivers, nursing assistants, and medical professionals.
Qualification Packs for Caregivers: HSSC has developed standardised qualification frameworks for elderly caregivers, home health aides, and patient care assistants — providing a formal certification pathway.
National Policy for Skill Development and Entrepreneurship 2015: The overarching framework governing India's skill ecosystem — emphasises alignment between training and industry demand.

Connection to this news: EAC-PM's recommendation to build a skilled caregiver workforce will require NSDC and sector skill councils to develop new, scaled training programmes specifically calibrated for the projected 30 million caregiver demand — likely expanding existing HSSC qualification frameworks.

The EAC-PM specifically recommends directing CSR funds toward care economy projects — anchored in the existing CSR framework.

Legal Basis: Section 135 of the Companies Act, 2013, mandates CSR spending for companies meeting specified thresholds (net worth ≥ ₹500 crore, OR turnover ≥ ₹1,000 crore, OR net profit ≥ ₹5 crore).
Spending requirement: Such companies must spend at least 2% of their average net profit of the preceding three financial years on CSR activities.
Schedule VII of the Companies Act: Lists the eligible categories of CSR activities. Relevant categories include:
Eradicating extreme hunger and poverty
Promoting healthcare and sanitation
Promoting education and livelihood enhancement projects — relevant to caregiver training
Measures for reducing inequalities faced by socially and economically backward groups — relevant to elderly and disabled care
Rural development projects
CSR funds for care: EAC-PM's recommendation would require either a Schedule VII amendment to explicitly include "care economy" or a clarificatory notification expanding interpretation of existing health/welfare categories.
CSR corpus: India's total annual CSR expenditure has exceeded ₹25,000 crore in recent years, making it a substantial potential funding source for social infrastructure.

Connection to this news: Channelling even a fraction of India's ₹25,000+ crore annual CSR corpus toward caregiver training and eldercare infrastructure could significantly accelerate the workforce build-out recommended by EAC-PM — without requiring major new budgetary allocations.

Key Facts & Data

Projected caregiver demand: 30 million+ by 2050
India's elderly population (60+) projected: 347 million by 2050 (~20% of total population)
Budget 2026-27 caregiver programme: training 1.5 lakh multi-skilled caregivers; outlay: ₹980 crore over 3 years
EAC-PM: chaired by S. Mahendra Dev; non-statutory advisory body
Women perform ~75% of global unpaid care work (UN Women)
Time Use Survey 2019 (MoSPI): first official quantification of gender care gap in India
CSR mandate: 2% of average net profit (Section 135, Companies Act 2013); Schedule VII governs eligible activities
Total India CSR spend: exceeds ₹25,000 crore annually
NSDC: public-private partnership under Ministry of Skill Development and Entrepreneurship
PMKVY (PM Kaushal Vikas Yojana): flagship skill training programme
National Policy for Skill Development and Entrepreneurship: 2015
SDG 5 (Gender Equality): calls for recognition, reduction, redistribution of unpaid care work