While corporate leaders have recently championed 90-hour workweeks and dismissed the idea of work-life balance, the Economic Survey 2024-25 — tabled in Parliament on Friday by Finance Minister Nirmala Sitharaman — presents a starkly different view. The survey warned that rising mental health concerns, particularly among the youth, could have significant consequences for productivity and long-term economic growth.
The survey highlighted workplace culture as a critical factor impacting mental health. It cautions that hostile work environments, long hours at desks, and high stress levels could hinder economic momentum. India’s economic ambitions, it argued, depend not just on a skilled and educated workforce, but also on their mental well-being. “A better workplace culture will lead to better mental well-being,” the survey noted, stressing that companies and policymakers must prioritise work-life balance to sustain productivity. “Low levels of mental well-being are worrying, and the ramifications of these trends on the economy are equally disturbing,” it adds.
With the nation’s demographic dividend at stake, the survey urges policymakers to place mental health at the heart of economic planning. “Given the direct costs to human welfare and the sentiment of the nation, prioritising mental well-being is both necessary and prudent,” the report states.
The economic impact of these mental health issues is considerable, with the World Health Organisation (WHO) estimating that mental health disorders could lead to an economic loss of $1.03 trillion for India between 2012 and 2030.
"State of Emotional Wellbeing Report 2024" released this month by 1to1help, an Employee Assistance Programme (EAP) service provider showed that India's corporate sector is grappling with an increase in mental health issues. Compiled from over 83,000 counselling sessions, the report reveals a 15% rise in mental health concerns, making these issues one of the primary reasons employees seek support. Even more concerning, suicide risks have increased by 22% and general distress cases by 17% compared to the previous year, with more than half of manager-referred employees showing signs of self-harm. These figures highlight the emotional toll of workplace pressures on the corporate workforce.
Employees under thirty are particularly vulnerable, experiencing higher levels of depression and anxiety. Factors such as career uncertainty, relocation, and relationship challenges contribute to the emotional strain they face while navigating the demands of a fast-paced, competitive environment.
Gender-specific insights show that women, despite comprising a smaller portion of the workforce, account for 52% of counselling sessions. Most of their counselling focuses on relationship issues, reflecting the emotional challenges of balancing personal and professional responsibilities. Meanwhile, there has been a 7% increase in men seeking counselling, driven by financial anxieties and pressures to be the primary earners.
In the digital era, the constant presence of technology exacerbates these issues, with only 3% of respondents achieving a healthy digital-life balance. This reliance on technology further compounds mental health challenges, highlighting the need for businesses to help employees manage their digital interactions.
“Managers can play a life-changing role, as over half of the manager referrals we received involved a presence of suicidal risk. This shows the importance of organisations and, crucially, of managers in helping employees access the right support at the right time,” said Mahua Bisht, CEO of 1to1help.
The Economic Survey 2024-25 called for urgent interventions at the school, family, and workplace levels to mitigate the impact of poor mental health on the economy. It also flagged lifestyle choices as a key determinant, noting that individuals who frequently consume ultra-processed or junk food report lower mental well-being than those who maintain healthier diets.
To address the growing crisis, the survey calls for early interventions, particularly in childhood and adolescence. Encouraging outdoor activities, social interactions, and stronger family bonds could help counter the negative effects of excessive internet use. “Returning to our roots may allow us to reach further for the skies in terms of mental health,” the survey said, emphasising that India’s long-term growth hinges on the psychological well-being of its youth.
The growing mental health crisis is clear. The National Mental Health Survey of India (2016) reported a 7.3% prevalence of psychological morbidity among adolescents aged 13 to 17 years. Suicide rates among adolescents are equally concerning. A study published in Child and Adolescent Psychiatry and Mental Health revealed that in 2021, around 5,075 males and 5,655 females under the age of eighteen died by suicide in India.
The Economic Survey 2024-25 also linked the surge in mental health issues among children and adolescents to the overuse of social media and excessive screen time. Citing Jonathan Haidt’s book The Anxious Generation, the survey highlights how the “great rewiring of children” through phone-based childhoods is altering their developmental trajectory. The survey noted that those who spend more time online, rarely exercise, or have weak family ties are more likely to experience lower mental well-being.
Are India Inc. and parents taking note?