The first revised Budget 2026-27, presented by Kerala Chief Minister V.D. Satheesan, who is holding the Finance portfolio, on Friday, prioritises the creation of Kerala’s silver economy, turning the State’s ageing demographic into an economic opportunity.

Kerala, which is at the forefront of the demographic transition that the rest of the country will soon be following, has 20.7% of its population over 60 years of age, according to the NFHS-6 (2023-24) data. This is significantly above the national average of 12.9%.

One of the key announcements made by the new UDF government soon after assuming office was the establishment of a dedicated Department of Elderly Welfare. The government will build upon this foundation to develop a silver economy encompassing necessary institutions, financial assistance mechanisms to enhance purchasing power, entrepreneurship programmes, and the strategic utilisation of the vast expertise of senior citizens, all guided by government policy documents, Mr. Satheesan said, while presenting the Budget, setting aside ₹10 crore towards operationalising the new department.

The silver economy views senior citizens not just as recipients of welfare schemes but as active consumers, workers, and participants in civil society, generating employment and economic growth.

He said that a comprehensive Silver Economic Policy will be formulated and executed, incorporating eldercare services, retirement infrastructure, innovations in geriatric healthcare, and elderly entrepreneurship.

He said that the government will conduct an exhaustive, State-wide survey to gather the opinions of senior citizens regarding the implementation priorities and modalities of this initiative. A long-term roadmap will be prepared on the basis of the survey to ensure that the elderly in Kerala lead active lives, thus propelling the silver economy.

Care economy

A care economy should be developed alongside the silver economy, as the need for elderly care has become a major imperative. With nuclear families becoming the norm in the State, traditional caregiving facilities are no longer available. The demand for professional caregiving services has grown significantly in the State, alongside the growth of the elderly population, a large section of whom have chronic morbidities.

It is indeed a refreshing prospect that the new Budget clearly identifies the potential of this sector to become a major source of employment for women and trained healthcare service providers.

Mr. Satheesan announced that Kerala is taking the first step towards creating a brigade of professional nursing care service providers to care for persons suffering from chronic illnesses, age-related difficulties, and debilitating disabilities by launching a Government-approved ‘Caregiver Certificate Course’ of six months’ duration in government and private nursing colleges, as well as in selected hospitals. The course curriculum and training will be developed to suit international standards, Mr. Satheesan said.

This is a positive development with major implications. The lack of regulation and quality standards in the provision of home healthcare services has been emerging as a significant social issue in Kerala, where the number of families in which elderly parents have to fend for themselves has been growing.

This caregivers’ initiative ensures professional care for those in need while providing dignified employment for unemployed youth, the government thinks.