Mental Health Takes Centre Stage in Budget 2026 And Why This Sharper Focus Is Long Overdue

Mental health has been a part of policy conversations before but Budget 2026 gave it the much desired push. Finance Minister Nirmala Sitharaman’s latest budget has put stronger focus on mental health infrastructure and access, showing a deeper acknowledgement of the scale and urgency of India’s mental health crisis.Some of the biggest announcements was the proposal to set up NIMHANS 2.0 in North India, along with the upgradation of major mental health institutes in Ranchi and Tezpur. The budget also underlined the need to strengthen mental health infrastructure, promote applied psychology, integrate wellness and yoga and expand trauma care services. This also points to our country's growing recognition that mental health disorders are rising

across age groups, genders and regions and that India’s existing system is struggling to keep pace.Globally, the burden is immense. The World Health Organization has consistently noted that mental health conditions are among the leading causes of disability worldwide. In 2021, an estimated 1 in 7 people globally over 1.1 billion people were living with a mental disorder. India mirrors this global trend. According to the National Mental Health Survey (2015–16) conducted by NIMHANS, about 10.6% of Indian adults, which means roughly 11 out of every 100 were living with a diagnosable mental health disorder. Nearly a decade later, experts believe the numbers are significantly higher. What makes the crisis even more alarming is how its impacting people across age groups. Mental health concerns are no longer limited to adulthood, in fact adolescents today face intense academic pressure, social media anxiety and identity stress. Young adults are grappling with job insecurity, loneliness and burnout, while elderly Indians increasingly struggle with depression, cognitive decline and social isolation, most often in silence.

The consequences are visible in suicide data too. Globally, over 727,000 people die by suicide each year, according to WHO estimates (2025). India’s own numbers are deeply concerning which have been steadily rising, as highlighted in the National Crime Records Bureau’s 2023 report, ‘Accidental Deaths & Suicides in India’. Behind these figures lie stories of untreated depression, substance abuse, academic pressure, financial distress and a persistent stigma that prevents people from seeking timely help.It is against this backdrop that Budget 2026’s announcements have been welcomed by mental health professionals. Dr Samir Parikh, chairperson - Mental health, Fortis healthcare and Adayu Mindfulnes described the renewed emphasis as a meaningful shift, calling it 'great news' and thanking the government for recognising mental health as a national priority. “Mental health has too long remained at the margins of public discourse, despite its profound influence on productivity, families and the social fabric of our nation. The recognition accorded in Budget2026 - particularly the proposal to establish NIMHANS 2.0 to widen access to specialised care, signals a thoughtful and necessary recalibration of national priorities. Investment in mental-health infrastructure is not merely a healthcare intervention; it is a commitment to dignity, inclusion, and long-term societal resilience. I extend my sincere appreciation to the Honourable Finance Minister and Prime Minister Shri Narendra Modi for foregrounding wellbeing in the national vision and for strengthening systems that can translate policy into accessible, ethical, and sustainable care. Such steps carry the promise of transforming lives at scale and building a healthier, more compassionate India for generations to come,” he said.Dr. Saurabh Mehrotra, Director, Neurosciences, Medanta, Gurugram further adds, "What stands out most is the clear prioritisation of mental health in the Budget. For far too long, mental health has remained under-recognised and underfunded despite growing demand across all sections of the population. The focus on expanding infrastructure, medical education and research reflects a much-needed shift in approach. It is heartening to see mental health finally receiving the attention and investment it truly deserves as an integral part of India’s healthcare system.” Moreover, The National Institute of Mental Health and Neurosciences (NIMHANS) in Bengaluru is the country’s premier institution for mental health and neurosciences, known for its excellence in clinical care, academics and research. Replicating such a comprehensive, multidisciplinary model in North India is a highly welcome step, he adds. ALSO READ: Budget 2026 Decoded: Full List of What Gets Cheaper and What Costs MorePsychiatrist Dr Achal Bhagat, however, gave a more measured assessment. While welcoming the continued attention, he pointed out that spending still appears heavily focused on tertiary institutions. “While one will have to study exact allocation for mental health in greater detail, it is encouraging that for two consecutive years mental health has been a focus for budgetary allocations. The spending however still seems to be focussed on tertiary institutions. What would be useful is to have a strategic plan for increasing access to a continuum of mental health services at the district and primary level. Increased spending on tertiary institutions actually continues to emphasise the need for people to travel to mental health care rather than access it closer to their homes and everyday lives. It would have also been useful to look beyond disaster and trauma as the lenses through which mental health is looked at. The proposed increased investment on human resource will help. But we are still a long way from bridging the treatment gap for mental health in India and the human resource gap for the same. If mental health policy and strategy were to focus on implementing the parity between health and mental health by investing in General Hospital Psychiatry Units at the district level and primary health care and mobile mental health teams in the urban areas, it is more likely to have a significant impact. Also investment in increased employability for people recovering from mental health problems would help. Budget is indicative to a good intent but it would be useful to revisit the mental health policy in a mission mode with a clear direction for the next decade."While funding alone will not erase stigma or immediately close India’s mental health gap, policy focus matters. It shapes priorities, unlocks resources and legitimises conversations that have long been pushed into the shadows. By sharpening and widening its focus on mental health in Budget 2026, the government has acknowledged what millions of Indians already know: mental well-being is not optional and it cannot wait.In a country grappling with rising stress, silent suffering and preventable loss of life, this renewed emphasis is not just timely, it is essential.