Economic Survey 2024-25 red flags India's growing love for fried chicken and cookies

The Economic Survey released on Friday expressed concern over the unchecked increase of ultra-processed foods (UPFs) and called for strict front-of-pack labeling regulations to mitigate their growing impact on public health and productivity.

From sweetened breakfast cereals, soft drinks, and energy drinks to fried chicken and
packaged cookies, UPFs have undeniably marked their formidable presence in everyday
diet.

According to the survey, citing WHO India, between 2011 and 2021, the value of retail sales in the UPF segment grew at a CAGR of 13.7%. Though there was a year-on-year growth rate decline from 12.7 per cent to 5.5 per cent during 2020, the very next year, it was 11.29 per cent.

The survey warned that the Rs 2,500-billion industry, driven by convenience, hyper-palatable options, affordability, extended shelf life, and aggressive marketing strategies, has created a favourable environment for the growth of UPFs in India.

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The trend is associated with increasing cases of cancer, cardiovascular diseases, and mental health issues, added the survey.

“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.

UPFs 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.

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Chief Economic Advisor V Anantha Nageswaran, in his media briefing, also emphasised the urgent need to tackle the issue of ultra-processed foods (UPFs), highlighting that this significant industry relies on “hyper-palatable food items” that manipulate consumer choices, especially among children and adolescents.

“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 connects poor dietary habits to a decline in mental health, warning that regular consumption of ultra-processed foods (UPFs), along with low physical activity and diminished social connections, significantly harms 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 said.

Nageswaran said that workplace culture and private sector attitudes toward ultra-processed foods (UPFs) will be crucial in determining whether India can “realise its demographic dividend.”

He added that prioritising medium-term public health gains over short-term profits is as vital as investment in skills and education for the country’s economic future.

While the government has initiated programmes like Eat Right India and the Fit India Movement to encourage healthier eating habits, the survey underscores the need for strong regulatory measures to curtail the consumption of harmful UPFs.

It argues that clear and effective labeling is essential for protecting India’s workforce, improving health outcomes, and ensuring sustainable economic growth.

With inputs from agencies