India surpassed China as the world’s most populous country in 2023. Two years later, the implications are becoming more concrete.

The demographic story is more nuanced than a headline number. India has a young population — median age around 28, compared to China’s 39 and Japan’s 49. In a global economy increasingly concerned about aging workforces and shrinking labor pools, this is a structural asset. More young workers means more potential output, more consumption, more innovation — if the economic conditions to absorb them exist.