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Demographic dividend refers to a period when fertility rates fall due to significant reductions in child and infant mortality rates thereby reducing the proportion of non-productive dependent population. This fall is often accompanied by an extension of average life expectancy that increases the proportion of the population that is in the working age-group. As more and more members of a family enter into the workforce and start earning, the expenditure of the household on the dependent population decreases as a proportion of the total income which increases savings. It is predicted that around 60 percent of India's population will be in the working age group by 2020. However, India has been facing difficulty in the realization of demographic dividend. India can exploit the benefits of demographic dividend if the working population gets employment opportunities, infant mortality rate and dependency ratio are reduced, adult literacy rate is increased, health care facilities are given and quality of labour force is improved.