59% of Indian employees report burnout; workplace stress could cost India 8% of GDP

India’s corporate mental health crisis is escalating at a pace that can no longer be ignored. 59% of Indian employees report burnout, nearly half say workplace stress is their single biggest mental health trigger, and poor employee well being could drain $350 billion every year, close to 8% of India’s GDP, according to estimates from the McKinsey Health Institute.

Against this backdrop, The Live Love Laugh Foundation has released a powerful new report titled "Transforming Mental Health in Corporate India: A Roadmap for Action." It urges India Inc to recognise mental health not as an HR formality but as a core business priority that directly influences productivity, retention, culture and long-term competitiveness. The report notes that while awareness has risen in recent years, most organisations remain in the early stages of their mental health journey, with interventions often symbolic rather than systemic.

The report outlines a four-phase path for companies to follow. It begins with rigorous data collection to understand employee sentiment and organisational maturity, followed by leadership alignment to build cultures of care and psychological safety. It stresses the need to integrate mental health into everyday workflows, policies and leadership behaviours, and then calls for companies to focus on long-term resilience through continuous monitoring, empathetic management and structures that treat well-being as a strategic growth driver.

Launching the report, Anisha Padukone, Chief Executive Officer of Live Love Laugh, said, "Progress on mental health takes more than short-term fixes. It demands leadership commitment, systemic integration and a roadmap that links well-being with performance. This report is meant to help leaders move from awareness to action."

The data in the report paints a concerning picture. 80% of employees in India reported at least one adverse mental health symptom affecting their productivity. 42% reported symptoms of anxiety or depression. For younger professionals, mental health is becoming a decisive career factor, with 71% of Gen Z workers saying employer provided mental health support influences their job choices. Yet stigma remains entrenched. While 39% of Gen Z and 34% of Millennials took time off due to stress or anxiety, many still hesitate to seek help.

The report categorises Indian companies into three broad groups. There are those unaware or skeptical of the business relevance of mental health. There are those that are interested but lack resources or clarity. And there are early movers that have introduced programmes like employee assistance offerings, but struggle with low utilisation due to cultural barriers or lack of trust. Many organisations, it finds, are willing but unsure how to convert intent into meaningful, measurable action.

The report concludes that while India Inc has taken visible steps, from Mental Health Day events to chief executive messages, the approach remains fragmented. For mental health to deliver real returns, it must be embedded into organisational systems, leadership priorities and everyday employee experiences.

The message to corporate India is unequivocal. With burnout rising and economic losses mounting, employee well-being is no longer optional. It is a strategic and economic necessity for India’s growth story.

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