Mental healthcare received a policy mention in the Union Budget 2026–27, with Finance Minister Nirmala Sitharaman announcing a second National Institute of Mental Health and Neuro Sciences (NIMHANS) campus in North India.

Presenting the budget in Parliament, Sitharaman said the move was necessitated by the lack of adequate mental health institutions in the northern region of the country.

Along with the proposed NIMHANS 2.0, the government will also upgrade existing National Mental Health Institutes in Ranchi and Tezpur to strengthen specialised care and training capacity.

In the Economic Survey 2026, which was presented earlier this week, mental health was flagged as a major issue, imposing a direct challenge on India’s public health.

The survey highlighted a high prevalence of social media addiction among those aged 15 to 24, citing multiple studies that point to rising anxiety, depression, low self-esteem and stress linked to cyberbullying.

It further warned of increasing digital addiction among children and adolescents, noting that excessive screen time is affecting academic performance, productivity and sleep, while weakening social connections.

NIMHANS, based in Bengaluru, is India’s apex institution for mental health education and neuroscience research. Founded in 1847 as the Bangalore Lunatic Asylum, it was renamed the Government Mental Hospital in 1925 and later established as NIMHANS in 1974 under the Ministry of Health and Family Welfare.

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