Pvt Sector's Toxic Habits Impact India's Economy: Eco Survey

New Delhi, Jul 22 (PTI) The private sector's contribution to the 'toxic mix of habits' like social media, screen time and unhealthy food that can undermine public health, productivity and diminish India's economic potential is substantial, the Economic Survey said on Monday.

The survey, tabled by Finance Minister Nirmala Sitharaman in Parliament, also pointed out that 'privileging capital over labour is inimical to long-term corporate growth prospects', referring to reluctance shown by businesses to make investments citing lack of demand visibility.

"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 said.

Further, it said, "The private sector's contribution to this toxic mix of habits is substantial, and that is myopic."

Stating that the emerging food consumption habits of Indians are not only unhealthy but also environmentally unsustainable, it said India's traditional lifestyle, food and recipes have shown how to live healthily and in harmony with nature and the environment 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," the Survey suggested.

In reference to job creation, it said, "Finally, 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".

Businesses are sometimes reluctant to make investments citing a lack of demand visibility. This could be due to external factors and internal factors such as weak employment growth and income growth, it acknowledged.

"To that extent, the lack of demand visibility is an endogenous factor.

"Privileging capital over labour is inimical to long-term corporate growth prospects. Businesses have an obligation to themselves to strike the right balance between deployment of capital and deployment of labour. As important, capital and labour shares of income have to be fair," it noted.

In their fascination for AI and fear of erosion of competitiveness, businesses have to bear in mind their responsibility for employment generation and the consequent impact on social stability, the survey reminded.