Economic cost of tobacco consumption estimated at 1.16 percent of GDP
Commemorating the World No Tobacco Day, Dr Harsh Vardhan, Union Minister for Health & Family Welfare released the highlights of a report on the “Economic Burden of Tobacco Related Diseases in India”.The report, supported by the Ministry of Health & Family Welfare, Government of India and the WHO Country Office for India, was developed by the Public Health Foundation of India (PHFI).
The report highlights that the total economic costs attributable to tobacco use from all diseases in India in the year 2011 amounted to a staggering Rs. 1,04,500 crores. Looking through GDP lens this is 1.16 percent of GDP and 12 percent more than the combined state and central government expenditure on health care in 2011.
The report also brings out that massive direct medical costs of tobacco attributable diseases amounted to Rs.16,800 crore and associated indirect morbidity cost of Rs. 14,700 crore. The cost from premature mortality was Rs. 73,000 crores, indicating a substantial productive loss to the nation.
The Health Minister also unveiled a print advertisement featuring Mr Rahul Dravid, India’s Brand Ambassador for Tobacco Control. Releasing the findings, Dr Harsh Vardhan said, “It makes perfect economic sense to regulate tobacco towards the goal of noncommunicable disease control in India. Tobacco is a preventable risk factor for major diseases and the resultant economic consequences.”
“I firmly believe that unless all of us come together and fight back tobacco resolutely, the financial burden of tobacco-attributable diseases will continue to push families of millions of tobacco users towards poverty and steadily decelerate the economic growth of the country. We cannot and must not let happen”.
Speaking about the Report, Dr Nata Menabde, WHO Representative to India said, “The evidence couldn’t be more clear and stark. It is, therefore, imperative that we seize the moment. Raising taxes is one of our strongest weapons to fight out tobacco and this is what the WHO Framework Convention on Tobacco Control mandates.”
Dr. Monika Arora, Director- Health Promotion, PHFI and one of the authors of the study said, “The report provides scientific basis to the public health argument against tobacco, clearly highlighting the enormous economic burden that country is bearing due to tobacco use while the revenue earned from tobacco is only a small fraction (17 percent) of the estimated economic cost of tobacco”.The launch event was followed by a panel discussion consisting of eminent experts and senior officials from various stakeholder ministries.
EH News Bureau–Mumbai