Days after Prime Minister Narendra Modi advised that Indian households should reduce food oil consumption by 10 per cent to fight challenges, the economic survey batted for regulating the ultra-processed foods (UPF) to curb its ill effects on health, particularly mental well being. It proposed putting “health tax” on such food to discourage their use and stricter norms on ingredients used.
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The economic survey argued against UPFs, also called junk food, claiming that they impact mental health, which is a crucial element in workforce productivity, which in turn influences economic growth. The survey also suggested healthier habits among children to curb the usage of mobile phones, as was being done in some countries.
The survey said India’s ambitions for sustained economic growth hinges not just on its workforce's technical and physical capabilities but also on their mental well-being. It explained how lifestyle choices, workplace culture, and dietary habits profoundly influence mental health, which in turn affects productivity and economic growth.
“Given the direct costs to human welfare and the spirit and sentiment of the nation, putting mental well-being at the centre of the economic agenda is prudent,” the economic survey tabled in the parliament by Finance Minister Nirmala Sitharaman said. “It is about time to find viable, impactful preventive strategies and interventions. India’s demographic dividend is riding on skills, education, physical health and, above all, mental health of its youth.”
The ES cited studies to argue that the adverse impact of hostile workplace environments and long hours spent at desks erode mental well-being, potentially slowing the pace of economic progress. Addressing these issues is essential if India is to harness its demographic dividend effectively.
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The increasing prevalence of mental health issues among youth has been linked to excessive internet and social media use, echoing findings from Jonathan Haidt’s book, The Anxious Generation, quoted in the economic survey. The book outlines how “phone-based childhoods” are reshaping the way children grow up, often to their detriment.
The survey argues that countries like Australia, Sweden, and Spain are already taking proactive measures, such as banning social media usage for children below 16. “While these interventions at the government level are being contemplated, there is an urgent need for school and family-level interventions to encourage healthy pastimes (meeting with friends, playing outside). Investing time in building close family bonds would go a long way towards keeping children and adolescents away from internet,” survey says.
Ultra Processed Foods
The economic survey makes a strong case against the high consumption of the Ultra-Processed Foods (UPFs) which were adversely impacting mental health of children and youth.
From sweetened cereals to packaged cookies and soft drinks, UPFs are defined as industrial formulations with additives, preservatives, and high levels of sugar, salt, and unhealthy fats. Despite their convenience and affordability, these foods are nutrient-deficient and linked to a host of health issues, including obesity, chronic diseases, and mental disorders.
The survey pointed out that convenience, hyper palatability, affordability, longer shelf life and vigorous advertising and marketing strategies have made a conducive environment for the thriving business of UPFs in India. WHO India reports that, between 2011 and 2021, the value of retail sales in the UPF segment grew at a CAGR of 13.7 per cent.
According to the HCES 2022-23, almost 9.6 per cent of the food budget in rural areas and 10.64 per cent in urban areas is spent on beverages, refreshments, and processed food.
Research shows direct associations between UPF consumption and 32 health parameters, including mortality, cancer, cardiovascular diseases, and mental health outcomes like anxiety and depression. The survey emphasises how excessive UPF consumption among children and adolescents exacerbates mental health issues, cognitive challenges, and long-term psychological distress.
The way forward
The survey argues that the ultra-processed food industry has flourished on the back of hyper-palatable products, misleading marketing, and celebrity endorsements that target consumer behaviour, often misrepresenting unhealthy options as nutritious.
Regulatory bodies must set and enforce stringent standards for permissible levels of sugar, salt, and saturated fats in these products. Routine monitoring and strict penalties for non-compliance will be key in holding manufacturers accountable, the survey suggests.
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The global examples offer lessons on how to manage the UPF crisis. Brazil, Canada, and Chile have adopted nutrient profile models to regulate labelling and marketing, while Denmark introduced a tax on saturated fats as early as 2011. Mexico has gone further by imposing surcharges on junk food and carbonated drinks. India, too, can adapt these measures to its unique context to build a robust regulatory framework.
Among the policy interventions suggested by the Economic Survey included must regulating advertising. The union health ministry could establish nutrient thresholds for sugar, salt, and saturated fats. Introducing clear front-of-pack warning labels (FOPL) and banning misleading advertisements, particularly those targeting children, will help curb the influence of aggressive marketing.
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“The Food Safety and Standards Authority of India (FSSAI) could consider bringing UPFs under regulation with a clear definition and standards, including stricter labelling requirements. Improved monitoring of branded products to ensure compliance would help build consumer confidence.”
The survey even suggested a higher tax rate for UPFs may also be considered as a ‘health tax’ measure targeted specifically at brands/products that advertise. “There is a need to generate greater awareness of the adverse impact of the consumption of UPFs through campaigns targeted at schools and colleges alongside existing health and lifestyle campaigns of the governments.”
