Private Sector’s Major Contribution to ‘Toxic Habit Mix’: Ecological Study

New Delhi: The private sector’s contribution to the “toxic mix of habits” such as social media, screen time and junk food that can undermine public health, productivity and reduce India’s economic potential is significant, the Economic Survey said on Monday. The survey, tabled by Finance Minister Nirmala Sitharaman in Parliament, also said that “the privileging of capital over labour is detrimental to the long-term growth prospects of businesses”, referring to the reluctance of businesses to invest, citing a lack of visibility of demand. “India’s working-age population needs skills and good health to be employable. Social media, screen time, sedentary lifestyle and junk food are a deadly mix that can undermine public health, productivity and reduce India’s economic potential,” it said.

It further stated that “the private sector’s contribution to this toxic mix of habits is significant and shortsighted.”

The report found that the new dietary habits of Indians are not only unhealthy but also environmentally unsustainable. The country’s traditional lifestyle, food and recipes have for centuries shown how to live healthily and in harmony with nature and the environment.

“It makes good business sense for Indian companies to understand and leverage these companies as they have a global market waiting to be led, not just exploited,” the study suggests.

On job creation, it said, “Finally, jobs are being created in the private sector. India’s corporate sector has never done better, with profitability at a 15-year high in fiscal 2024. Profits have quadrupled between fiscal 2020 and fiscal 2023.”

Companies are sometimes reluctant to invest, citing a lack of visibility into demand. This can be due to external and internal factors, such as weak job and income growth, it has been admitted.

“In this respect, the lack of transparency of demand is an endogenous factor.

“Privileging capital over labor is detrimental to the long-term growth prospects of enterprises. Enterprises have an obligation to find the right balance between the use of capital and the use of labor. Importantly, the share of capital and labor in income must be fair,” it noted.

As the study reminds us, companies fascinated by artificial intelligence and fearing a decline in competitiveness must remember their responsibility for creating jobs and the related impact on social stability.

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