Mental Health Crisis Threatens India’s Economic Growth: Key Problem Areas Revealed in 2024-25 Survey

New Delhi: Mental well-being is emerging as a crucial factor in India's economic progress, according to the Economic Survey 2024-25. Beyond emotional and cognitive health, mental well-being directly impacts workforce productivity, economic output, and the nation’s long-term growth potential.

The survey underscores that India’s demographic dividend depends not only on education and physical health but also on the mental resilience of its youth and workforce.

Workplace Stress and Mental Health

The survey presents compelling evidence that workplace culture plays a significant role in shaping mental well-being. Employees with supportive managers and colleagues report a 33% higher mental well-being score than those in toxic workplaces.

Those with manageable workloads experience 27% better mental well-being, while a strong sense of purpose at work boosts well-being by 33-40%.

Remote work, often seen as a flexible option, has its drawbacks. Fully remote workers experience a 17% lower mental well-being score than those in hybrid or in-office settings, suggesting that workplace social interactions are essential for mental health.

Additionally, employees who spend more than 12 hours at a desk have mental well-being scores 100 points lower, emphasizing the harmful effects of excessive screen time and poor work-life balance.

Unhealthy Lifestyles and Mental Well-Being

The Economic Survey highlights growing concerns over ultra-processed foods (UPFs) and their impact on mental health. Studies show that high UPF consumption is linked to cognitive decline, lower adaptability, and an increased risk of depression and anxiety.

The scale of the problem is alarming—India’s UPF consumption has surged from $900 million in 2006 to $37.9 billion in 2019, indicating a dramatic shift in dietary habits affecting public health.

Beyond diet, sedentary lifestyles, excessive social media use, and weak family connections are also fuelling India’s mental health crisis. The survey points out the growing mental health risks among adolescents due to social media addiction, referencing global policy interventions such as Australia’s social media ban for those under 16.

Economic Impact of Mental Health Issues

The survey outlines the economic consequences of neglecting mental health, revealing that workers with lower well-being scores (-100 to -50) miss about 15 workdays per month, whereas those with higher scores (150+) miss only two days.

This leads to massive productivity losses. Additionally, a WHO study cited in the survey finds that depression and anxiety cause 12 billion lost workdays annually, costing the global economy $1 trillion per year.

Government Initiatives and The Way Forward

In response to these alarming trends, the Indian government has implemented several mental health initiatives. The National Mental Health Policy (2014) and Mental Healthcare Act (2017) aim to provide rights-based, accessible mental health services.

The National Mental Health Program (NMHP) supports mental health infrastructure across primary, secondary, and tertiary care levels, while Tele-MANAS, launched in 2024, offers a nationwide digital mental health platform.

The Economic Survey calls for urgent intervention, urging policymakers to place mental health at the forefront of India’s economic agenda. It stresses the need for transparent assessment frameworks and emphasizes that safeguarding mental well-being is key to sustaining India’s workforce and economic momentum.

As the country moves forward, prioritizing mental health alongside education, healthcare, and workforce development will be critical to long-term economic stability.