Union Budget 2026: Mental healthcare emerged as a key priority in the Union Budget 2026-27, with Finance Minister Nirmala Sitharaman unveiling a major institutional expansion to address chronic gaps in India’s mental health infrastructure. Acknowledging the absence of sufficient national-level institutions dedicated solely to mental health, the government announced plans to set up two new national mental health institutes in Ranchi and Tezpur, along with 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 proposed institutes will significantly improve access to specialized mental healthcare, advanced academic training, and research, particularly in underserved regions. The new centers in Ranchi and Tezpur are expected to function as national hubs for treatment, professional training, and policy-driven research, helping decentralized services currently concentrated in a few urban centres.

One of the most significant announcements was the creation of “NIMHANS 2,” a second campus modeled on the Bengaluru-based NIMHANS, India’s premier mental health and neurosciences institute. The upcoming North India campus will focus on specialized psychiatric care, trauma management, neurosciences, and cutting-edge research, addressing the region’s long-standing lack of advanced mental health facilities.

Government officials said the expansion is designed to strengthen India’s capacity to respond to rising cases of depression, anxiety, addiction, and trauma to accidents, disasters, and conflict. By replicating the NIMHANS model, the government aims to scale expertise, improve clinical outcomes, and expand postgraduate and specialist training for mental health professionals.

The announcement comes amid growing recognition of mental health as both a public health and economic priority. Despite initiatives like Tele MANAS improving access to counselling, India continues to face a significant treatment gap due to a shortage of trained professionals and specialized institutions. Experts have consistently stressed the need for sustained investment in physical infrastructure and training centers to achieve long-term impact.

By proposing national-level institutes in Ranchi and Tezpur, the government seeks to strengthen regional access to quality mental healthcare in eastern and northeastern India. These institutes are also expected to support state health systems through research, referral services, and capacity building, contributing to a more balanced and resilient national mental healthcare network.

While details on funding and implementation timelines are awaited, the Budget 2026 focus on mental health marks a clear shift from previous years. Sitharaman’s emphasis on institutional capacity building signals a move towards structural reform, a step widely welcomed by policymakers and mental health professionals alike.