Key Update

The Economic Survey 2025–26 has, for the first time, categorised obesity and unhealthy diets as economic risks rather than only public health concerns. It warns that rising obesity levels could weaken productivity, increase healthcare expenditure and place long-term pressure on public finances.

Ultra-processed foods are driving unhealthy diets

A major factor behind the trend is the rapid expansion of ultra-processed foods (UPFs). Retail sales of UPFs in India rose sharply from $0.9 billion in 2006 to nearly $38 billion in 2019. Citing global evidence, including The Lancet series on UPFs, the Survey links high consumption to obesity, diabetes, heart disease, respiratory illnesses and mental health disorders.

Obesity levels are rising across India

According to National Family Health Survey (NFHS) data cited in the report, 24 per cent of Indian women and 23 per cent of men are overweight or obese. The Survey flags childhood obesity as a growing concern. Overweight prevalence among children under five increased from 2.1 per cent in 2015–16 to 3.4 per cent in 2019–21. In absolute terms, India had around 33 million obese children in 2020, a number projected to rise to 83 million by 2035.

Why obesity threatens productivity and public finances

The Survey warns that diet-related diseases will increase healthcare costs for both households and the government. Chronic illnesses could reduce workforce participation, lower productivity due to premature morbidity, and create long-term fiscal stress as spending on non-communicable diseases expands. In this context, obesity is framed as a human capital risk with implications for India’s future growth.

Awareness alone is not enough

While public messaging on reducing sugar, salt and fat intake is important, the Survey stresses that individual behaviour change will not be sufficient. Food systems, marketing practices and availability shape dietary patterns. Improving diets, it argues, will require coordinated policy action across food production, regulation and marketing, supported by ongoing research and monitoring.

Source: Business Standard