Economic Survey 2023-24: Private sector's role in unhealthy habits substantial

Economic Survey 2023-24: The private sector significantly contributes to the 'toxic mix of habits' such as excessive social media use, increased screen time, and unhealthy eating, which can undermine public health and productivity, ultimately affecting India's economic potential, according to the Economic Survey presented on Monday.

The survey, tabled by Finance Minister Nirmala Sitharaman in Parliament, highlighted the detrimental impact of these habits on the working-age population's health and productivity. "For India's working-age population to be gainfully employed, they need skills and good health. Social media, screen time, sedentary habits, and unhealthy food are a lethal mix that can undermine public health and productivity and diminish India's economic potential," it stated.

It pointed out that the private sector's role in promoting these unhealthy habits is substantial and short-sighted. The survey also criticised the trend of prioritising capital over labour, warning that this approach is detrimental to long-term corporate growth. Businesses often cite a lack of demand visibility as a reason for not making investments, a situation attributed to both external factors and internal issues such as weak employment and income growth.

"To that extent, the lack of demand visibility is an endogenous factor," the survey noted. It underlined that "privileging capital over labour is inimical to long-term corporate growth prospects. Businesses have an obligation to themselves to strike the right balance between the deployment of capital and the deployment of labour. As important, capital and labour shares of income have to be fair."

The survey also highlighted the unhealthy and environmentally unsustainable food consumption habits emerging among Indians. It urged Indian businesses to embrace traditional lifestyles, food, and recipes, which have shown how to live healthily and harmoniously with nature for centuries. "It makes commercial sense for Indian businesses to learn about and embrace them, for they have a global market waiting to be led rather than tapped," it suggested.

In terms of job creation, the survey noted that "jobs are created in the private sector. India's corporate sector has never had it so good as now, with profitability at a 15-year high in FY24. Profits had quadrupled between FY20 and FY23." It reminded businesses of their responsibility for employment generation and the consequent impact on social stability, especially in the context of the increasing fascination with artificial intelligence and concerns about competitiveness.

The survey concluded by reinforcing the importance of a balanced approach to capital and labour deployment for sustainable corporate growth and social stability.

(With PTI inputs)