Economic Survey Flags Digital Addiction as Major Economic Concern for India
The Economic Survey of India has issued a groundbreaking warning about the profound economic consequences of digital addiction, marking the first time this issue has been formally recognized as a significant threat to the nation's productivity and financial stability. While digital connectivity offers undeniable benefits like enhanced learning opportunities, job creation, and civic engagement, the survey presents a stark analysis of the mounting economic and social risks associated with compulsive internet use.
Weighing Digital Benefits Against Growing Economic Costs
The report meticulously balances the advantages of widespread internet access against a spectrum of negative outcomes. It identifies substantial economic drains, including lost study hours among students, diminished workplace productivity, escalating healthcare expenses, and financial losses stemming from risky online behaviors such as cyber fraud. The survey concludes that digital addiction is rapidly evolving into a pressing economic concern that demands immediate policy attention.
Beyond direct financial losses from online shopping, gaming expenditures, and cybercrime, digital addiction can severely impact employability, reduce productivity, and lower lifetime earnings potential. The document notes a strong correlation between compulsive digital usage and increased instances of anxiety, stress, depression, and sleep disorders. These issues are particularly acute among students, who face dual pressures from academic demands and exposure to cyberbullying and high-stimulus digital platforms.
Global Context and India's Regulatory Steps
This government assessment arrives as numerous countries implement measures to curb social media usage among minors. For example, Australia has enacted a ban on social media accounts for children under 16. In India, the survey references the Online Gaming (Regulation) Act, 2025, which banned real-money gaming apps, as a step in a similar regulatory direction aimed at mitigating digital harms.
The Challenge of Digital Natives: Generations Alpha and Beta
Narayanan Ramaswamy, partner and national leader for education and skill development at KPMG India, provides critical insight into the generational dimension of this issue. "Generations Alpha and Beta are true digital natives, born into a world dominated by smartphones and digital devices," he explains. "Their average daily screen time reaches six to seven hours, leaving minimal opportunity for personal development and diminishing focus on other essential activities."
Ramaswamy emphasizes a more profound concern: "Digital technology isn't merely a part of their lives; it has become their way of life. Many young users lack awareness of alternatives, so they don't recognize their behavior as addictive or understand its potential downsides." He further cautions that if India were to implement a social media ban for minors similar to Australia's, young people could experience severe withdrawal symptoms, presenting significant coping challenges.
Digital Economy Growth Versus Societal Impact
The survey underscores a critical paradox. While the digital economy's contribution to national income is substantial—pegged at 11.74% in FY23 and projected to rise to 13.42% by FY25—its negative impacts on the population are intensifying. It highlights the scale of digital engagement in India, with 350 million social media users and 400 million consumers of OTT and food delivery services.
Addressing the Data Deficit and Proposing Solutions
A significant hurdle identified is the lack of comprehensive nationwide data on mental health risks linked to digital usage. This includes an absence of standardized metrics for screen-time-related issues like sleep debt, anxiety, productivity loss, and cyberbullying, coupled with limited programs focused on adult digital wellness.
To bridge these gaps, the survey proposes actionable strategies. Governments and communities are urged to establish offline youth hubs in urban slums and rural areas. Recognizing that digital access cannot be entirely restricted, the report suggests that schools or similar institutions could host moderated, safe online spaces. These environments would offer peer support and verified mental health resources under the supervision of trained facilitators.
Expert Insights on Cognitive and Developmental Risks
Aanchal Anand, a child and adolescent psychologist at Mindzcraft in Delhi, elaborates on the developmental dangers. "The primary concern for psychologists is the 'displacement effect'—where screens replace hands-on, sensory-rich play that is crucial for building neural pathways," she states. "Excessive screen time is associated with difficulties in impulse control, organization, and focus."
Anand adds, "Over-reliance on digital devices can limit a child's capacity to observe and interact with their natural environment, potentially leading to slower cognitive processing and reduced flexibility in thinking."
Educational Institutions as Frontline Defenders
The survey calls on schools to take a leadership role by integrating a digital wellness curriculum. This should encompass screen time literacy, cybersecurity education, and mental health awareness. Supportive measures like cybersafety drills, peer mentor programs, and mandatory daily physical activity are recommended to build student resilience.
Furthermore, the report advises a strategic shift away from the heavy reliance on online teaching tools that expanded during the COVID-19 pandemic. It advocates for a renewed emphasis on greater offline engagement and interactive learning methods to foster a more balanced digital lifestyle for India's youth.
