\India’s Economic Survey 2025-26 has called for age-based restrictions on digital platforms, warning that compulsive screen use among young people is imposing measurable economic and social costs on the country.
The survey recommends social media companies enforce age verification and implement age-appropriate defaults, “particularly for social media, gambling apps, auto-play features, and targeted advertising.” The proposal targets an “intensely digital environment” where near-universal access has shifted the challenge from connectivity to behavioural health. “Digital addiction negatively affects academic performance and workplace productivity due to distractions, ‘sleep debt’, and reduced focus,” the survey states, flagging risks to India’s long-term economic prospects.
The recommendations come as the digital economy accounts for 11.74% of national income as of FY23, with internet connections surging from 250 million in 2014 to nearly 970 million in 2024. Over 85% of households now own at least one smartphone, making digital access universal among the 15-29 age group. “With near-universal mobile/internet use among 15-29-year-olds, access is no longer the binding constraint; the focus needs to shift to behavioural health considerations such as the rising problems of digital addiction,” the survey says.
Chief economic adviser V Anantha Nageswaran, who authored the preface of the survey, backed state-level moves toward restrictions. “We are very happy to know that the Andhra Pradesh government is contemplating restricting social media for children under 16. So is the Goan government,” Nageswaran said on Thursday, describing digital addiction as a “silent scourge” that could undermine development if left unaddressed.
The survey proposes structural interventions beyond regulatory bans. These include promoting “simpler devices”—such as basic phones or education-only tablets—for children to limit exposure to harmful content. It also suggests “network-layer safeguards” where internet service providers could offer family data plans with differentiated quotas, allowing unlimited data for education apps but capping recreational usage.
The survey explicitly recommends creating “offline youth hubs,” particularly in urban slums and rural areas, to provide spaces for socialisation and recreation without digital devices, directly countering the isolation bred by excessive screen time.
Regulatory framework Under the Digital Personal Data Protection Act 2023, social media companies—or data fiduciaries—must obtain verifiable parental consent before processing children’s personal data. “Verifiable parental consent has already been introduced by the DPDP Act 2023. The rules regarding VPC lay down a framework by which platforms need to verify whether a user is a child or an adult,” said Aparajita Bharti, founding partner of public policy firm The Quantum Hub.
She added that the framework was designed to be flexible to ensure that the industry can develop privacy-preserving methods. “In that sense, Economic Survey’s suggestions aren’t indicating any extra obligations on age gating,” she said.
The survey links compulsive digital use to reduced employability, productivity and lifetime earnings. Citing Indian and global studies, it associates different forms of digital addiction with specific harms: social media addiction correlates with anxiety and depression among those aged 15 to 24; gaming disorder connects to sleep disruption and social withdrawal; and online gambling ties to financial stress and suicidal ideation.
Streaming and short-video platforms also come under scrutiny, with the survey linking “binge-watching and endless video loops” to poor sleep hygiene and reduced concentration.
Data from the Annual Status of Education Report 2024 shows only 57% of children aged 14 to 16 used phones for educational purposes, while 76% used them for social media. Nageswaran noted platform algorithms are often designed to maximise engagement among users aged 15 to 24.
The government passed the Online Gaming (Regulation) Act, 2025 last year, banning online money games involving wagering—a move the survey describes as an effort to curb compulsive behaviour.
However, policy experts caution against overreach. “I think we need to be careful about how we define ‘digital addiction’,” said Meghna Bal, director at tech policy think tank Esya Centre. “Many of the proxies relied on in the survey—such as sleep quality, anxiety, stress and workplace outcomes—are not solely borne out of spending too much recreational time on screens.”
Child psychologists report the risks flagged by the survey are already playing out. “Children as young as 2 years old are hooked on to tiny screens and that is disrupting the brain’s developmental processes,” said Dr Stuti Kumar, a child psychologist based in Pune. Ayushika Anand, a Noida-based child psychologist, cautioned that how limits are imposed matters. “If the limits are purely done from a perspective of punishment or without reasonable explanation, then the kids will come up with workarounds.” The survey’s proposals include introducing digital wellness education, encouraging screen-time limits, and expanding services such as the Tele-MANAS mental health helpline. For adults, the survey recommends “digital diets” involving voluntary device-free periods and workplace “buddy systems”.
