Obesity to drive long-term healthcare demand: Economic Survey 2025–26 

Rising obesity levels in India are expected to add to long-term healthcare demand, as obesity-related conditions increasingly require continuous outpatient care rather than one-time hospital treatment, cautioned the Economic Survey 2025–26 tabled in Parliament by Finance Minister Nirmala Sitharaman on Thursday.

The Survey noted that obesity-linked conditions typically involve regular monitoring, follow-up and long-term management, placing pressure on outpatient services, diagnostics and primary care facilities. Unlike acute illnesses, obesity-related diseases require sustained interaction with the healthcare system, adding to demand for consultations, diagnostics and follow-up care rather than inpatient hospitalisation.

It grouped obesity with non-communicable diseases and digital addiction among key health concerns and said addressing these issues cannot depend only on public healthcare systems. The health chapter focuses on “the roles of the private sector and citizens in managing obesity, non-communicable diseases, and digital addiction”, the Survey said.

Based on the 2019–21 National Family Health Survey, the Survey noted that “24% of Indian women and 23% of Indian men are overweight or obese”. Among adults aged 15–49 years, “6.4% of women and 4% of men are obese”. The prevalence of excess weight among children under five has increased from 2.1% in 2015–16 to 3.4% in 2019–21.

The Survey flagged childhood obesity as a growing concern. “Over 3.3 crore children in India were obese in 2020, and it is projected to reach 8.3 crore children by 2035,” it stated.

The Survey pointed to lifestyle factors behind rising obesity levels, including reduced physical activity, higher screen time and changes in dietary habits, particularly among children and young adults.

A key factor identified is the rapid expansion of ultra-processed foods in Indian diets. The Survey observed that “India is one of the fastest-growing markets for UPF sales”, with growth of more than “150% from 2009 to 2023”. Retail sales of UPFs increased from “$0.9 billion in 2006 to nearly $38 billion in 2019”, a period during which obesity levels “nearly doubled in both men and women”.

According to the Survey, UPFs are “displacing long-established dietary patterns, worsening diet quality”, and are associated with a higher risk of chronic diseases. Citing global evidence, it stated that “high UPF consumption is associated with several adverse health outcomes, such as obesity, chronic heart disease risk, diabetes and mental health disorders”.

The Survey also drew attention to the economic impact of rising UPF consumption. “The rising use of UPFs imposes a substantial economic cost through higher healthcare spending, lost productivity, and long-term fiscal strain,” it stated.

Data cited in the Survey showed the scale of the related disease burden. Under the National Programme for Prevention and Control of Non-Communicable Diseases, India has carried out 40.13 crore hypertension screenings and 39.86 crore diabetes screenings, reflecting the growing prevalence of lifestyle-related conditions.

From a policy perspective, the Survey said greater attention is needed on preventive healthcare, including early screening and lifestyle-related interventions, to manage obesity-related risks over time. It added that unchecked obesity trends could increase healthcare costs and place a continuing burden on the health system in the years ahead.

Marketing practices came under scrutiny. The Survey noted that “marketing strategies for UPFs often include explicit encouragements for overconsumption”, including emotional appeals, celebrity endorsements and promotional offers. Such practices, it stated, lead to “the displacement of whole foods and degrade the quality of the diet”. Evidence cited showed that children and adolescents exposed to unhealthy food advertising demonstrated higher intent to consume such products.

While India has policy frameworks in place, the Survey pointed to enforcement gaps. It stated that “enforcement against misleading food advertisements leaves much to be desired”, noting that existing rules do not define misleading claims using measurable or nutrient-based criteria. This regulatory ambiguity, it said, allows companies to continue making vague health or nutrition claims without violating clearly defined standards.

The Survey emphasised that improving diets “cannot depend solely on consumer behaviour change” and called for “coordinated policies across food systems that regulate UPF production, promote healthier and more sustainable diets and marketing”.

Among the measures discussed were restrictions on UPF advertising across media, including digital platforms, stronger protections for children, and clearer standards for front-of-pack labelling. The Survey stated that “studies have shown that warning labels are the most effective option for discouraging UPF consumption”, compared with rating-based labelling systems.

Fiscal measures were also outlined. “The possibility of introducing the highest slab of GST and a surcharge on UPFs which exceed thresholds for sugar, salt, or fat could be explored,” the Survey stated, with revenue potentially supporting nutrition education and non-communicable disease prevention programmes.

At the same time, the Survey outlined ongoing government interventions. Under the National Programme for Prevention and Control of NCDs, “over 31.5 crore adults have been screened, and 8.47 crore identified as overweight or obese”. Campaigns focused on diet awareness, physical activity and reduced oil consumption were cited as part of efforts to slow the rise in obesity.