Why is Sanskrit considered a dead language when there are so many speakers today?

 Sanskrit is the language developed in North West region of Indian Subcontinent and spread across Western to Eastern India, north of Vindhyas.

Sanskrit has a creative literature of all religions evolved in this holy land over the centuries, learned and adopted by Brahmins across west to east.

In 3rd to 7th century, there was a revolt by others, Kshatriyas dominated, Shramanic religions of Buddhism and Jainism adopted and Pali Prakrities / Magadhs are preferred over Sanskrit. Sanskrit started declining. Prakritis pave the way for eastern languages of Ardh Magadh and Bengali.

The actual death of Sanskrit, happened in 14th century coincided with Islamic invasions and pave the way for birth of variants of Urdu / Hindi and adopted as one of the official languages of India.

Sanskrit speakers increase/ decrease in census at various point in time, in NCR, MP, Vidarbha, UP regions, depending on policy measures of Government indicating employment opportunities.

Currently about 24000 Sanskrit Native speakers, an increase of 100%, from 12000 in preceding census.It is one of the Language with highest CAGR in India with Government Support and spending.

Otherwise it was already declared dead with people adopting Bengali and Hindi in East to West.