Budget 2026: Mental health prioritized as Sitharaman announces 'NIMHANS 2'
What's the story
In a major push for mental health, Finance Minister Nirmala Sitharaman has announced plans to set up a second National Institute of Mental Health and Neurosciences (NIMHANS) in North India. The move is part of the government's larger strategy to bolster India's mental healthcare infrastructure. The decision comes after the Economic Survey 2026 flagged mental health as a major public health challenge in India.
Institutional expansion
Proposed NIMHANS 2 to be modeled on Bengaluru institute
The proposed NIMHANS 2 will be modeled on the Bengaluru-based NIMHANS, which has been India's premier institution for mental health education and neuroscience research since its establishment as NIMHANS in 1974, although its origins date back to 1847. The new institute is expected to enhance India's capacity to tackle rising mental health issues such as stress-related disorders, depression, addiction, and trauma from accidents/disasters. It will also play a key role in research, policy support, and training of mental health professionals.
Decentralization efforts
Budget 2026 also proposed to upgrade Ranchi NIMHANS
Along with the new national institute, Budget 2026 also proposed to upgrade the existing National Institute of Mental Health and Neurosciences in Ranchi into a regional center of excellence. The move is aimed at improving access to specialized mental healthcare in resource-constrained regions of eastern India. Upgrading this institute is expected to improve clinical services, expand academic programs, and enhance research capabilities.
Survey insights
Economic survey flagged mental health as major issue
The Economic Survey 2026 had flagged mental health as a major issue, directly challenging India's public health. It noted a high prevalence of social media addiction among those aged 15-24 years and highlighted the rise in anxiety, depression, low self-esteem and cyberbullying-related stress. The survey emphasized on growing digital addiction among children and adolescents, which is affecting academic performance, productivity and sleep while eroding social connections.