- Mental health featured prominently in Union Budget 2026-27 with new institutional plans
- A second NIMHANS campus will be set up in North India for specialised care and research
- Expansion aims to improve access, training, and research in underserved regions
Mental health took centre stage in the Union Budget 2026-27, with Finance Minister Nirmala Sitharaman announcing a major institutional expansion aimed at addressing long standing gaps in India's mental healthcare infrastructure. Acknowledging that the country currently lacks sufficient national level institutions dedicated exclusively to mental health, the government proposed the establishment of two new national mental health institutes, to be located in Ranchi and Tezpur, alongside plans to create a second campus of the National Institute of Mental Health and Neuro Sciences (NIMHANS) in North India.
Presenting her ninth consecutive Budget in Parliament, Sitharaman said the new institutions are intended to improve access to specialised mental healthcare, advanced training and research, particularly in regions that remain underserved. The proposed institutes in Ranchi and Dispur will function as national level centres for treatment, academic training and policy oriented research, helping decentralise mental health services that are currently concentrated in a handful of locations.
A key highlight of the announcement was the proposal to establish "NIMHANS 2", a second campus modelled on the Bengaluru based NIMHANS, India's premier mental health and neurosciences institute. According to the Finance Minister, the new NIMHANS campus will be set up in North India to address the absence of advanced mental health institutions in the region. The institute will focus on specialised care, trauma management, academic training and cutting edge research in psychiatry, psychology and neurosciences.
Officials said the expansion is aimed at strengthening India's capacity to respond to a growing mental health burden, including depression, anxiety, addiction and trauma related to accidents, disasters and conflict. By replicating the NIMHANS model, the government hopes to scale up expertise, improve clinical outcomes and expand postgraduate training opportunities for mental health professionals.
The announcement comes amid increasing recognition of mental health as a public health and economic priority. India faces a significant treatment gap, with demand for psychiatric care far outstripping the availability of trained professionals and specialised institutions. While programmes such as Tele MANAS have improved access to counselling services, experts have long argued that sustained investment in physical infrastructure and training institutions is essential for long term impact.
By proposing national level institutes in Ranchi and Dispur, the government aims to strengthen regional access to high quality care in eastern and northeastern India, areas that have historically lacked tertiary mental health facilities. The new institutes are also expected to support state level health systems through research, capacity building and referral services, creating a more balanced national mental healthcare network.
The Budget's focus on mental health marks a notable shift from previous years, when the sector received limited attention in budget speeches. Sitharaman's emphasis on institutional capacity building signals a move towards long term structural reform rather than short term interventions. While details on funding timelines and implementation are awaited, policymakers and mental health professionals have welcomed the announcements as a significant step towards strengthening India's mental healthcare ecosystem.
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