Budget 2026: FM's Proposals To Support Mental Health A Message To Shed Stigma

Finance Minister Nirmala Sitharaman proposes to set up NIMHANS-2 and upgrade the existing National Mental Health Institutes in Ranchi and Tezpur

Budget Bottomline, Union Budget, Budget 2026, Nirmala Sitharaman, WHO, Mental Health, India Budget

When Finance Minister Nirmala Sitharaman announced the government’s commitment to mental health and trauma care, it was a clear indication that this epidemic, if not addressed in time, could even jeopardise India’s growth story.

Not only did the Finance Minister propose to set up a NIMHANS-2, but she also said that existing National Mental Health Institutes in Ranchi and Tezpur will be upgraded as regional apex institutions.

Why is a deteriorating mental health condition among Indians becoming a cause for concern?

The Ministry of Health and Family Welfare estimated an economic loss of ₹1.03 lakh crore between 2012 and 2030 due to mental health conditions.

This is even more important for India, where about 65% of the population is under 35.

Challenged mental health – anxiety, depression and fatigue, can potentially erode productivity as it dents cognitive functions, leading to errors and slowing of completion of tasks. In India, mental health disorders are becoming more and more prominent among the youth.

A study by the National Institute of Mental Health and Neurosciences (NIMHANS) undertaken in 2015-16 pointed out that about 10.6% of Indian adults – roughly 11 out of every 100 adults – were living with a diagnosable mental health disorder.

Rising Rates

Suicide rates in India are rising. In 2023, India recorded more than 1,71,400 suicides.

The report showed that 70% to 92% of the people with mental disorders do not receive proper treatment due to a lack of awareness, stigma, and a shortage of professionals.  

While most insurance policies in India do not provide any coverage for mental health disorders, sources said that the Budget announcements could push insurers to plug this gap.

According to the World Health Organization (WHO), more than 1 billion people live with mental health disorders. India also needs to increase the number of mental health counsellors, therapists and psychiatrists. At present, the country has less than one psychiatrist per 100,000 people, while the WHO recommendation is to have at least three per 100,000. 

Tele MANAS

The government has taken a host of measures to address rising mental health challenges in the country. Tele MANAS, a phone-supported helpline, National Suicide Prevention Strategy and District Mental Health Programme (DMHP), among others, are government-led programmes aimed at supporting mental health.

Several countries, including the Netherlands, Portugal, and Australia, are grappling with rising mental health crises.

Depression is becoming not only a pandemic in India but globally. Sitharaman's proposals to support mental health are not only an acknowledgement of the problem, but are also a message for the people -- that there should be no stigma attached to this.

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