The Economic Survey 2025 does not propose a specific fiscal intervention for ultra-processed foods (UPFs) but highlights their health hazards.
That's the word coming in from Chief Economic Advisor to the Government of India V Anantha Nageswaran, who noted that fiscal policy has been used to discourage harmful consumption. The survey states that raising consumer awareness, front-of-pack labelling, and discussions beyond government intervention are necessary, Nageswaran told NDTV Profit in an exclusive interview after the release of economic survey data for the fiscal 2025-26, ahead of the Union Budget, which will be tabled at Lok Sabha on Saturday by Finance Minister Nirmala Sitharaman.
The survey released on Friday suggested a multi-pronged approach to address concerns over rising UPF consumption in India. It mentions that a higher tax rate on UPFs could be considered as a “health tax” targeting brands and products that advertise them.
It recommended that the Food Safety and Standards Authority of India (FSSAI) regulate UPFs by defining clear standards and implementing stricter labelling requirements. Improved monitoring of branded products is suggested to ensure compliance and build consumer confidence.
The survey, which cited a cited a 22-country study showing that self-regulation has been ineffective, noted that consumer protection measures should be strengthened to address aggressive marketing, misleading nutrition claims, and advertising targeted at children and youth.
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