Economic Survey Highlights Digital Addiction as a Major Threat to India's Growth

Economic Survey 2025-26 Addresses Digital Addiction

In a significant move, the Economic Survey 2025-26, presented in Parliament on January 29, 2026, just three days before the budget session, has prominently included the aspects of physical and mental health in its analysis of the country's economic landscape. The survey identifies the rising issue of digital addiction among children and youth not only as a social concern but also as a serious threat to the nation's economy, productivity, and mental well-being.

According to the survey, the excessive time spent by youth on smartphones, social media, online gaming, and other digital platforms has emerged as a significant challenge. This addiction is linked to various issues such as anxiety, depression, sleep deprivation, low self-esteem, cyberbullying, and difficulties in concentration. Consequently, it adversely affects academic performance, career prospects, and workplace productivity, which could ultimately impact the country's GDP and economic growth in the long run.

The Scale of the Digital Addiction Threat

How Serious is Digital Addiction?

• High prevalence of social media addiction has been observed in the age group of 15-24 years, corroborated by both Indian and global studies.


• Excessive screen time leads to 'sleep debt', distractions, and reduced focus, which diminishes academic performance and efficiency.


• This addiction is eroding social capital and causing economic losses due to impulsive online spending, gaming, and cyber fraud.


• The survey warns that if not addressed, this could escalate into a public health crisis, jeopardizing India's demographic dividend.

Recommendations from the Survey

What Measures Have Been Suggested?

The Economic Survey has proposed a multi-faceted approach to tackle digital addiction:

• Age-based restrictions: Implementing age limits on social media and other platforms, such as mandatory access blocks or age verification for younger children.


• Digital wellness education: Incorporating curricula on cyber safety, digital hygiene, and screen time management in schools.


• Parental and community interventions: Training parents in screen time management, promoting device-free hours at home, and encouraging offline activities.


• Improvements in schools: Setting screen time limits, mandating physical activities, creating technology-free zones, and establishing peer-mentor programs.


• Platform accountability: Holding social media companies responsible for harmful content, banning autoplay features, and default blocking high-risk content.


• Expansion of government initiatives: Extending Tele-MANAS for digital addiction and enhancing facilities like NIMHANS's SHUT clinic.


• Other suggestions include establishing offline youth hubs (especially in urban slums and rural areas), differentiated data plans (educational vs recreational), and national data collection on digital addiction.

Global Actions Against Digital Addiction

What Steps Have Other Countries Taken?

Several countries have already implemented strict measures against digital addiction, as referenced in the survey:

• China: Limits gaming time for children to three hours per week and enforces age restrictions on social media.


• European Union: Mandates data protection for children and age-appropriate design under GDPR and DSA.


• Australia and the USA: Some states require parental consent or impose restrictions on social media for children under 16.


• In India, initiatives like the PRAGYATAH framework (safe internet in schools), the Online Gaming (Regulation) Act 2025, and CBSE guidelines are already in place.