In a significant move to bolster mental healthcare infrastructure across the country, Union Finance Minister Nirmala Sitharaman announced plans to establish a new unit of the National Institute for Mental Health and Neuro Sciences in North India. The announcement was made during her Union Budget 2026-27 speech in Parliament, highlighting the government's renewed focus on addressing critical gaps in mental health services.
Addressing Regional Disparities in Mental Healthcare
During her budget presentation, Sitharaman acknowledged the concerning lack of national-level mental health institutions in North India, stating that this gap has long been a pressing issue in the region's healthcare landscape. "Reaffirming our commitment to mental health and trauma care, there are no national institutes for mental health care in North India," the Finance Minister declared, emphasizing the urgent need for specialized facilities.
Comprehensive Upgrade Plan for Mental Health Institutions
The government's comprehensive plan includes establishing what has been termed "NIMHANS 2.0" - a new branch of the premier Bengaluru-based institution that will serve North India. Additionally, Sitharaman announced that existing national mental health institutes in Jharkhand's Ranchi and Assam's Tezpur will receive substantial upgrades to transform them into regional apex institutions.
"We will therefore set up a NIMHANS 2.0 and also upgrade national mental health institutes in Ranchi and Tezpur as regional apex institutions," Sitharaman stated, outlining the government's multi-pronged approach to strengthening mental healthcare infrastructure across different regions of the country.
Broader Healthcare Initiatives in Budget 2026
The mental health announcements formed part of a broader healthcare push in the Union Budget 2026-27. Sitharaman's speech featured several significant healthcare initiatives, including customs duty waivers on 17 cancer drugs and duty exemptions for medicines used to treat seven rare diseases, aimed at making critical treatments more affordable and accessible.
Traditional Medicine and Inclusive Healthcare
In her post-budget press conference, Sitharaman elaborated on the government's commitment to creating an inclusive healthcare system that ensures dignified treatment for all citizens, including 'divyangajan' (persons with disabilities). The budget also included substantial provisions for traditional medicine, with plans to add three new Ayurveda institutes, upgrade Ayush pharmacies and drug-testing laboratories to meet top-tier certification standards, and strengthen the WHO Global Traditional Medicine Centre in Jamnagar.
The Finance Minister emphasized that these healthcare initiatives represent the government's holistic approach to building a robust, accessible, and comprehensive healthcare ecosystem that addresses both modern and traditional medical needs while prioritizing mental health as a critical component of overall wellbeing.
