At the CII Annual General Meeting on May 29, India’s Chief Economic Advisor (CEA) V Anantha Nageswaran delivered a thought-provoking keynote, calling attention to what he labelled the biggest threat to India’s demographic dividend – the growing consumption of ultra-processed foods and increasing screen time among Indian youth.

Nageswaran warned that while India's young population is often hailed as a key economic strength, this advantage could be lost if health and well-being are compromised. "We need to think seriously about what we are offering youth," he said, urging both policymakers and the private sector to act responsibly.

The Role of Brands and Corporate Responsibility

The CEA took a strong stand on the use of celebrities in advertising ultra-processed foods, arguing that the industry's corporate social responsibility (CSR) should go beyond just contributing 2% of profits. He reminded corporations that their influence on youth behaviour and lifestyle choices is immense, and that they must adopt a more ethically responsible stance.

"CSR is not limited to donations. It includes the values your brand promotes," Nageswaran added, encouraging companies to ensure their marketing strategies are aligned with national health goals.

India’s Mid-Term Economic Challenges

Besides addressing health-related issues, Nageswaran delved into the broader mid-term challenges facing India. He noted that uncertain global geopolitics, economic instability, and changing judicial responses are contributing to a volatile policy landscape.

However, despite these hurdles, the CEA expressed confidence that India is well-positioned to capitalise on existing silver linings.

Optimism Amid Uncertainty: India’s Economic Outlook

Nageswaran highlighted several factors that could support India's growth this year:

• Lower global energy prices, which reduce import costs and inflationary pressures.

• A more growth-friendly monetary policy, with interest rates less restrictive compared to previous years.

• Strong fundamentals in domestic consumption and infrastructure investments.

He projected that India could achieve GDP growth of 6.3% to 6.8% in the current financial year and continue this momentum over the medium term.

Building Trust in Society: A Core Requirement

In a rare but powerful note, Nageswaran emphasized the importance of trust within Indian society. He pointed out that in conversations around capital and energy, the underlying foundation of societal trust is often overlooked.

"We must ask ourselves how to build trust in society. Without trust, economic frameworks weaken," the CEA said, reflecting a broader view on sustainable growth and societal cohesion.

Towards Viksit Bharat: A Holistic Approach

The keynote also touched upon the Viksit Bharat mission, India’s long-term vision of becoming a developed country. For this mission to succeed, Nageswaran stressed the need to address both economic and non-economic challenges – from public health to education and community trust.

A Call to Action for Private Sector and Policymakers

Nageswaran’s speech was a clear call to action for the private sector, especially large brands and multinational corporations. By shifting focus from profit-only motives to socially responsible business practices, he argued, the corporate world can help protect and nurture India’s most valuable resource – its youth.

Conclusion: The Balance Between Growth and Responsibility

In sum, the CEA’s message was both cautionary and optimistic. While India stands at a promising economic juncture, it must be careful not to lose sight of long-term public health and societal well-being. From reducing unhealthy food promotions to strengthening societal trust, these less discussed but critical factors will play a central role in determining India's future success.

This comprehensive perspective is not only timely but essential as India charts its path towards becoming a developed economy under the Viksit Bharat roadmap.

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