Will reducing tobacco consumption help India’s economy?

Health By Sumit Jha Oct 09, 2024 Read the article

There is a common belief in India that the government does not ban tobacco products because it generates a large amount of revenue, which is then spent on public welfare.

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However, a study by Indian health economists presents a different view.

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While they acknowledge that reducing tobacco consumption may initially impact the country’s GDP, they argue that in the long run, it will lead to an increase in GDP.

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The study found that a 10 percent reduction in tobacco consumption would initially negatively affect GDP and employment.

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However, these initial losses are offset by the positive economic effects of averted premature deaths caused by reduced tobacco use.

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The study was led by Kerala-based health economist Dr Rijo M John, along with Badri Narayanan from Boston College, USA, with funding from the WHO.

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India is one of the world’s largest consumers and producers of tobacco, with 267 million (26.7 crore) people using some form of it.

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