Ankur Gupta, JMD, Ashiana Housing: India requires a push for the growth of Silver Economy

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Globally, the coronavirus pandemic has upended many lives and forever altered the life of citizens across all age groups but it has been even more challenging for the elderly population. Due to countrywide lockdown and strict regulations for social distancing and isolation, the feelings of fear, anxiety, loneliness, and depression took over the senior cohort. At present, India’s senior citizen population is second largest in the world after China and while the government policies should cater to the needs of the disadvantaged sections, the seniors from middle income and upper income segments should also be prioritized. A Confederation of Indian Industry (CII) report projects that the senior population in India will witness a three-fold increase of up to 30 crores by 2050, presenting an exciting opportunity for the senior living industry. Currently, though the senior housing demand is huge but on the supply side, senior housing in 40+ senior living players across all formats stands at just 15,000-20,000 units.

Developed economies provide relaxation from financial burden to senior citizens in multiple manners in the form of direct income tax exemptions, exemptions for expenses on clinical and non-clinical care up to a certain limit, which should also be adopted in India. Senior citizens living in retirement community currently pay 18% GST for the monthly services along with 5% GST on food. Several senior citizens also need specialized senior care equipment which when imported attracts 28% GST. Relaxation in taxes will help increase the purchase volumes and in doing so, increase the overall tax value. At the same time more and more seniors will get benefitted by availing the services and products designed especially for them, resulting in receiving better facilities.

The need for senior living projects will continue to grow over the next couple of decades. As a result, states and municipalities need to update their zoning laws to promote dedicated land allocation for senior living projects and provide a dramatic push to the sector. Within this, relevant authorities need to ensure well planned parking norms, density norms and infrastructure norms, specifically for senior living. The government needs to improve the law for health insurance for seniors as it becomes expensive over time. Health insurance for people taken at corporate level should continue for life and there should be norms to ensure that they remain reasonably priced. Additionally, reverse mortgage needs modification as currently it is not really helping seniors liquidate their assets to solve their medical or assisted care challenges. With 20% of the Indian population likely to be elderly by 2050, the government as well as private sector needs to devise robust strategies for providing social security and healthcare benefits to them.

We need to build housing solutions that are completely focused on ensuring requirements of senior citizens are met - through parks where they can enjoy a walk, workout or a designated space with requisite senior-friendly facilities. At the same time, we should bring in standardization for all senior care services and products. This will improve their quality and streamline the processes followed to closely monitor these offerings and be able to make any course correction, if required. And on the other side, when all stakeholders come together, it will help boost the acceptance for senior care facilities in the minds of Next of Kins (NOKs).

Positive demographic growth drivers, focused efforts by government and policy makers, and recent rise in number of private sector players across various senior care formats, the sector presents a massive potential for development in the next few years. People post their retirement years, primarily look for a space that provides them with the right amenities ensuring their emotional and physical well-being. Hence, concerted, multi-stakeholder efforts are required to build an ecosystem that helps address their concerns and allows them to engage in various recreational activities for their overall wellbeing. The government must provide the right push to make sure that the private sector is able to generate employment, service the elders better and create the right ecosystem.

To know more about Active Senior Living at Ashiana Housing, visit www.ashianahousing.com/senior-living-india  

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