Mental health issues have economic implications, notes Economic Survey 2024

The Economic Survey 2024 on Monday flagged the rise in mental health issues among Indians and suggested that investments in the area promise greater returns.

“In the Indian context, the estimated return on investment in the implementation of the Mental Health Care Act, 2017, by the government to be 6.5 times,” the survey said.

The Survey 2024, presented by Union finance minister Nirmala Sitharaman, said individuals aged 25-44 years are the most affected by mental illnesses that affect an individual's quality of life and constrain the realisation of their potential.

“At an aggregate economic level, mental health disorders are associated with significant productivity losses due to absenteeism, decreased productivity, disability, increased healthcare costs, etc.,” it pointed out.

Also Read: Economic Survey 2024 Live Updates: Corporations need to step up hiring, increase worker salaries, document says

Quoting the National Mental Health Survey (NMHS) 2015-19 data, the Economic Survey said 10.6% of adults suffered from mental health disorders in the country, while the treatment gap for mental disorders ranged between 70% and 92% for different disorders.

Besides, according to the NMHS, the prevalence of mental morbidity was higher in urban metro regions at 13.5% as compared to 6.9% in rural areas and 4.3% in urban non-metro regions.

Also Read: Indian economy grows over 7% for a 3rd consecutive year; 10 key highlights

The Survey said the second and more expansive NMHS is in the process.

“Apart from mental health impacting economic development, there is also evidence of poverty affecting the risk of mental health via stressful living conditions, financial instability and a lack of opportunities for upward mobility, which contribute to heightened psychological distress," said the Survey.

The survey also highlighted that rising urbanization and migration can disrupt social cohesion, traditional support systems, and stability, causing significant mental stress.

The Economic Survey is an annual report or comprehensive review of the Indian economy during the fiscal year ended. It is prepared by the economics division of the finance ministry's department of economic affairs under the guidance of the India's chief economic advisor (CEA).

Also Read: Increase in retail investors in Indian stock market calls for careful consideration: Economic Survey 2024

As per the World Health Organization, in 2019, one in every eight people, or 970 million people globally, were living with a mental disorder, with anxiety and depression being the most common conditions. 

The covid-19 pandemic led to a 27.6% increase in cases of major depressive disorders and a 25.6% increase in cases of anxiety disorders in 2020 globally.

In India, a survey by the National Council of Educational Research and Training showed an increasing prevalence of poor mental health among adolescents exacerbated by the pandemic, with 11% reporting as feeling anxious, 14% as feeling extreme emotion, and 43% as experiencing mood swings. 

About half of the students surveyed cited studies as a reason for anxiety, and 31% cited examination and results.

“There is a need to address mental health issues among the Indian population. Mental health plays an important role in functioning, including work,” said Rajesh Sagar, professor, psychiatry department, at the All-India Institute of Medical Sciences, Delhi. 

“A patient who is suffering with mental health condition does not show interest in any activity and not even work, which may lead to absenteeism, loss of productivity or efficiency,” he added. "As per a WHO report, in India the economic loss due to mental health conditions is estimated at $1 trillion between 2012-2030.”