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The Economic Survey 2025 in India has sounded a stark warning about the escalating consumption of ultra-processed foods (UPFs) and its detrimental impact on public health. The survey highlights a dramatic increase in UPF consumption, rising from a mere $900 million in 2006 to over $37.9 billion in 2019, representing a compound annual growth rate (CAGR) of 13.7% between 2011 and 2021. This alarming trend underscores the urgent need for comprehensive intervention to mitigate the associated health risks. The survey emphasizes that self-regulation has proven ineffective, necessitating a multi-pronged approach involving stricter regulations, increased taxation, and robust public awareness campaigns.
Central to the Economic Survey's recommendations is the implementation of a ‘health tax’ on ultra-processed foods. This tax would target brands and products heavily advertised, aiming to discourage consumption. Further measures include raising the Goods and Services Tax (GST) rates on UPFs and amending consumer protection laws to curb misleading advertising. The survey points out the inherent deception in the marketing of many packaged food items, often portraying them as healthy despite containing high levels of fat, salt, and sugar. Addressing this deceptive marketing is crucial to empowering consumers to make informed choices. The survey cites successful examples from other countries, such as Denmark's tax on saturated fats and Mexico's surcharge on sugary drinks, as models for effective intervention.
Beyond taxation, the Economic Survey advocates for a significant increase in public awareness. The survey emphasizes the need for massive campaigns targeting schools, colleges, and the general public to educate individuals about the health risks associated with UPF consumption. These campaigns should focus on highlighting the link between UPFs and various health problems, including obesity, cardiovascular disease, and mental health issues. Furthermore, the survey suggests promoting healthier alternatives, such as local and seasonal fruits and vegetables, through subsidies and initiatives that improve their accessibility and affordability. The goal is to shift consumer preferences towards healthier dietary choices.
The survey also calls for stricter regulations concerning the labeling and marketing of UPFs. While India has implemented some regulations, including the Advertising and Claims Regulations, 2018, and the Food Safety and Standards (Labelling and Display) Regulations, 2020, these measures are deemed insufficient. The survey recommends setting clear standards for permissible levels of salt, sugar, and saturated fats in UPFs and ensuring that brands adhere to these regulations. Furthermore, it suggests the urgent need for the Ministry of Health and Family Welfare to define nutrient thresholds for these key components, enabling the implementation of front-of-pack warnings and stricter marketing restrictions, particularly those aimed at children. The survey also proposes the removal of UPFs from schools, hospitals, and public areas, replacing them with healthier options.
The Economic Survey's recommendations are far-reaching, addressing the problem of UPF consumption from multiple angles. By combining taxation, stricter regulations, and comprehensive public awareness campaigns, the government aims to create an environment that promotes healthier eating habits and mitigates the long-term health consequences of excessive UPF consumption. The success of this initiative hinges on the government's commitment to implement these recommendations effectively, alongside the collaboration of various stakeholders, including food manufacturers, retailers, and public health organizations. The long-term health of India’s population depends on a concerted effort to tackle this growing health crisis.
Source: Economic Survey 2025: Health tax, strict regulations suggested to take on junk food