Economic Survey: Ultra-Processed Foods and Obesity Pose a Significant Risk to National Productivity and Economic Growth.

The Economic Survey 2026 has raised concerns about the increasing consumption of ultra-processed foods (UPFs) and rising obesity levels in India, highlighting them as significant threats to the nation's productivity. The survey, tabled in Parliament, establishes a direct link between unhealthy dietary habits and the surge in non-communicable diseases (NCDs) such as diabetes, heart disease, and hypertension, affecting individuals across all age groups and socioeconomic backgrounds.

India is witnessing a rapid expansion of its UPF market, with sales increasing by over 150% between 2009 and 2023. Retail sales have surged dramatically from $0.9 billion in 2006 to nearly $38 billion in 2019, marking a 40-fold increase. This rise in UPF consumption has coincided with a near doubling of obesity rates among both men and women in the same period.

The Economic Survey points out that UPFs are displacing traditional dietary patterns, leading to a decline in overall diet quality and an elevated risk of chronic diseases. Citing the Lancet Series on Ultra-Processed Foods and Human Health, the survey emphasizes the strong global evidence linking high UPF consumption to obesity, cardiovascular disease, diabetes, respiratory illnesses, and mental health disorders. Beyond the health implications, the survey underscores the substantial economic costs associated with increased healthcare spending, reduced productivity, and long-term financial strain.

To address this growing public health challenge, the Economic Survey suggests a multi-pronged approach. One key recommendation is the implementation of a marketing ban on UPFs from 6 a.m. to 11 p.m. across all media channels. Additionally, the survey advises enforcing stricter regulations on the marketing of infant and toddler milk and beverages. Other measures proposed include front-of-pack nutrition labeling for foods high in fat, sugar, and salt (HFSS) with prominent warnings, restrictions on marketing unhealthy foods to children, and ensuring that trade agreements do not undermine public health policies. The survey further recommends that nutrient and health claims on UPF packs should be prohibited, to avoid health halo effects.

The Economic Survey references the comprehensive, multi-pronged initiatives launched by the government to prevent, manage, and reduce obesity in the country. These include POSHAN Abhiyaan & Poshan 2.0, Fit India Movement, Khelo India, Eat Right India, Nationwide Awareness Campaign – 'Aaj Se Thoda Kam' and AAMs, the School Health Programme, and Yoga promotion.

The Economic Survey's findings and recommendations highlight the urgent need for a coordinated effort to address the rising consumption of ultra-processed foods and the associated health and economic consequences. By implementing effective policies and promoting healthier dietary choices, India can mitigate the threat to its productivity and ensure a healthier future for its citizens.


Written By
Kabir Sharma is a sharp and analytical journalist covering the intersection of business, policy, and governance. Known for his clear, fact-based reporting, he decodes complex economic issues for everyday readers. Kabir’s work focuses on accountability, transparency, and informed perspectives. He believes good journalism simplifies complexity without losing substance.
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