Economic survey warns of gorging on chips, drinks and more

The Economic Survey on Friday raised concerns over the unchecked rise of ultra-processed foods (UPFs), calling for stringent front-of-the-pack labelling rules to curb their growing impact on public health and productivity.

It warned that the Rs 2,500-billion industry, which is 'too big to be ignored', driven by hyper-palatable food items, misleading advertisements, and celebrity endorsements, is linked to rising cases of cancer, cardiovascular diseases, and mental health issues.

"Stringent front-of-the-pack labelling rules are needed and to be enforced. It is not an exaggeration to suggest that the country's future growth potential rides a lot on this measure," the survey said.

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UPFs, which include packaged snacks, sugary beverages, instant meals, and processed meats, are often high in fat, salt, and sugar (HFSS). Despite global attempts at industry self-regulation, the survey argues that such measures have been ineffective in protecting consumers from health risks.

"Scientific evidence abounds that the consumption of ultra-processed foods (High in Fat, Salt, and Sugar or HFSS) is a big factor in undermining both physical and mental health. In this regard, globally, self-regulation has been ineffective," it said.

Chief Economic Advisor (CEA) V. Anantha Nageswaran, in his media address, also spoke on the urgency of addressing the issue, noting that UPFs are a massive business built on "hyper-palatable food items" that manipulate consumer choices, particularly among children and adolescents.

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"Misleading advertisements, celebrity endorsements, and missing and obscured labelling on packages [are] targeting consumer behaviour. Ultra-processed foods are directly associated with exposure to cancer, respiratory, cardiovascular, and gastrointestinal health outcomes," he said.

The survey also links poor dietary habits to mental health decline, warning that frequent UPF consumption, combined with low physical activity and weakened social ties, significantly reduces overall well-being and workplace productivity.

"It is not a theoretical construct. It is an empirical finding across the world, including in India. And lower mental health naturally has a direct correlation with the number of working days and overall productivity as well," the survey noted.

Nageswaran further stressed that workplace culture and private sector attitudes toward UPFs will play a crucial role in determining whether India can "realise its demographic dividend." He pointed out that "prioritising medium-term over short-term gains" in public health is as important as skilling and education for the country's economic future.

The government has launched initiatives like Eat Right India and the Fit India Movement to promote healthier eating habits, but the survey stresses that strong regulatory intervention is needed to limit the consumption of harmful UPFs.

Clear and effective labelling, it argues, is essential to safeguarding India's workforce, ensuring better health outcomes, and securing long-term economic growth.