Union Budget 2026 signals a notable shift in India’s public healthcare priorities by placing mental health firmly on the national agenda. Recognising that healthcare challenges extend beyond physical illness and infrastructure, the government has outlined measures aimed at addressing the country’s rising mental health burden.
A key announcement includes the establishment of a second campus of the National Institute of Mental Health and Neuro Sciences (NIMHANS) in northern India. In addition, national mental health institutions in Ranchi, Jharkhand, and Tezpur, Assam, are set to be strengthened. These initiatives are expected to expand access to psychiatric care, research, and professional training in regions that have long lacked specialised mental health services.
Recent public health assessments and data from the National Crime Records Bureau indicate a steady increase in cases of depression, anxiety, and psychological distress, particularly among young adults and the working population. India continues to report more than 1.6 lakh suicide cases annually, with factors such as financial pressure, substance abuse, and untreated mental illness playing a significant role.
Despite the growing need, access to mental healthcare remains limited. Experts estimate that nearly 80 percent of individuals requiring mental health support do not receive timely treatment. One of the main challenges is the uneven distribution of specialists, as psychiatrists and therapists are largely concentrated in metropolitan areas, leaving rural and semi-urban regions underserved.
Affordability is another major concern. Private mental health consultations in urban centres can cost between ₹1,000 and ₹3,000 per visit, with therapy sessions and long-term medication adding to the financial burden. Public healthcare facilities, on the other hand, often face manpower shortages and extended waiting periods, leading many patients to discontinue treatment. In this context, expanding national mental health institutions is seen as essential not only for patient care but also for developing skilled professionals and decentralising expertise.
Industry stakeholders have welcomed the Budget’s focus. Srikanth Keezhamadathil, founder of AIXE Labs, which develops Artograph AI, said the emphasis on institutional capacity and continued support for healthcare innovation could help strengthen diagnosis, treatment, and access to mental healthcare across the country.
Healthcare professionals also view the move as a positive step. Dr Jothi Neeraja, founder and managing director of People Tree Hospitals and Maarga Mind Care, noted that the Budget recognises the importance of depth and quality of care, rather than just physical infrastructure. She added that linking national centres with district-level services, digital counselling platforms, and community screening programmes would be crucial for early intervention.
Reflecting increased private sector participation, Maarga Mind Care has announced plans to establish 25 specialised mental health hospitals across India over the next five years.
While experts agree that Budget 2026 marks an important policy shift, they stress that effective implementation will determine its impact. Strengthening institutions, improving last-mile access, and making treatment more affordable will be critical to closing India’s mental health treatment gap.
