Productivity Loss

India’s Mental Health crisis: Challenges, Budget response, and the way ahead

India is facing a growing mental health crisis marked by a high burden of depression, anxiety, addiction, and suicides, with nearly 70–92% treatment gap and a severe shortage of professionals. The Union Budget 2026 has focused on institutional expansion, including a second campus of the National Institute of Mental Health and Neurosciences, upgradation of regional institutes, and continued support for digital services like Tele MANAS. However, mental health spending remains below 2% of the health budget, and challenges such as stigma, limited community-level services, workforce shortages, and rising youth and digital-age stress persist. Addressing the crisis requires greater funding, community-based care, preventive strategies, and stronger primary healthcare integration to ensure accessible and affordable mental health services for all.