Mental health issues and poor lifestyle choices are costing India billions in lost productivity, with some workers missing up to 15 workdays monthly, according to the government’s annual Economic Survey released on Friday, which proposed a “health tax” to combat one of these aspects — the surging consumption of ultra-processed foods (UPFs).
In the economic survey 2024-25 tabled in parliament on Friday, the government cited a 2023 World Health Organisation report to highlight how India’s consumption of ultra-processed foods has skyrocketed from USD 900 million in 2006 to USD 37.9 billion in 2019, marking a staggering annual growth rate exceeding 33 per cent, according to.
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“A higher tax rate for UPFs may also be considered as a ‘health tax’ measure targeted specifically at brands/products that advertise,” the survey stated, emphasising that self-regulation has proven ineffective globally. “It is not an exaggeration to suggest that the country’s future growth potential rides a lot on this measure.”
The report highlights that UPFs are food items high in fat, salt, and sugar (HFSS), with substantial evidence linking them to deteriorating physical and mental health. The UPF industry’s business model relies on the hyper palatability of food items and aggressive marketing strategies, including misleading advertisements and celebrity endorsements targeting consumer behaviour.
“For example, breakfast cereals, tetra pack juices and chocolate malt drinks, often advertised as healthy and nutritious, come under the category of UPF based on their ingredients,” the report noted. “Misleading nutrition claims and information on UPFs need to be tackled and should be brought under the scanner. Setting standards for permissible levels of salt and sugar and ensuring checks for UPF brands to adhere to the regulations are also required.”
To address these concerns, the survey suggests the Food Safety and Standards Authority of India (FSSAI) should establish clear definitions and standards for UPFs, including stricter labelling requirements.
Poor lifestyle choices, including excessive junk food consumption, sleep deprivation, increased device use, and lack of exercise, are major risk factors for non-communicable diseases (NCDs) such as cardiovascular diseases, cancers, chronic respiratory diseases, and diabetes. The Indian Council of Medical Research’s 2017 report “India: Health of the Nation’s States” showed that NCD-related deaths in India rose from 37.9% in 1990 to 61.8% in 2016.
Mental health emerged as another crucial focus area, with the economic survey recognising it as an economic issue. The report extensively discussed the increasing prevalence of mental health issues worldwide and in India, linking them directly to workplace culture, working hours, and lifestyle choices.
Recent data from the Sapien Labs Centre for Human Brain and Mind, India, collected in October and November 2024, revealed striking correlations between work environment and mental well-being. The special survey focused on understanding the impact of work culture, family bonds, eating habits, pastimes, and exercise on mental well-being and productivity.
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The study found that employees with positive manager and colleague relationships showed a 100-point higher (33 per cent) mental well-being score compared to those with poor workplace relationships. Additionally, those reporting manageable workloads demonstrated 80 points or 27 per cent greater mental well-being than their overwhelmed counterparts.
Dr Rajesh Sagar, professor at AIIMS-Delhi’s psychiatry department, commented, “There’s enough evidence to establish that reduced social interactions and increase in screen time (of any kind) has an adverse impact on both physical and mental health. It’s a healthy sign that these issues are being highlighted now as now is the time to look at measures to mitigate the harm it’s doing.”
Experts welcomed the higher tax rate proposed on UPF. “It should help in controlling the high consumption of low or zero nutritive value items, especially among children,” said Dr Piyus Ranjan, senior consultant and vice chairman, gastroenterology department, Sir Ganga Ram hospital.
The survey particularly highlighted the detrimental effects of extended desk hours, noting that individuals working 12 or more hours at a desk showed distressed/struggling levels of mental well-being—approximately 100 points below those working two hours or less.
“If India’s economic ambitions are to be met, then immediate attention must be given to lifestyle choices that are often made during childhood/youth. Furthermore, hostile work cultures and excessive hours spent working at the desk can adversely affect mental well-being and ultimately put the brakes on the pace of economic growth,” the report concluded.