Union Budget 2026-27 proposes NIMHANS-2, expands trauma care

Union Budget 2026: Acknowledging gaps in access to mental healthcare and emergency services in the country, the government in the Union Budget 2026-27 announced plans to expand specialised mental health institutions and strengthen trauma care capacity at district hospitals.

“There are no national institutes for mental healthcare in north India. We will therefore set up a NIMHANS-2 and upgrade National Mental Health Institutes in Ranchi and Tezpur as Regional Apex Institutions,” Finance Minister Nirmala Sitharaman said while presenting the Budget in Parliament February 1.

At present, the National Institute of Mental Health and Neurosciences (NIMHANS), Bengaluru, is the country’s only centrally funded apex institute for mental health and neurosciences, drawing patients from across India. The absence of similar institutions in north and eastern India has meant long travel, higher costs and delays for patients requiring advanced psychiatric and neurological care.

The Budget also addressed emergency and trauma care at the district level. “Emergencies expose families, particularly the poor and vulnerable, to unexpected expenditure,” Sitharaman said, adding that emergency and trauma care capacities would be strengthened by 50 per cent in district hospitals through the establishment of Emergency and Trauma Care Centres.

Dr Devi Prasad Shetty, Founder and Chairman of Narayana Health, said the twin focus on mental health institutions and district-level emergency care addressed structural gaps in healthcare delivery. “Strengthening district hospitals through a 50% increase in emergency and trauma care capacity, alongside the establishment of a second NIMHANS and regional mental health apex centres, addresses critical gaps in last-mile and mental healthcare,” he said.

India continues to face a large unmet need in mental healthcare. The National Mental Health Survey estimates that nearly one in seven Indians lives with a mental health condition, while close to 75 per cent of those requiring care do not receive adequate treatment. Workforce shortages remain acute, with government and World Health Organization assessments showing fewer than one psychiatrist per one lakh population, alongside gaps in psychologists, psychiatric social workers, and mental health nurses.

The expansion of specialised institutions is expected to improve access to advanced care, training, and research beyond a handful of centres. Dr Samir Parikh, Chairperson, Mental Health Programme at Fortis Healthcare and Adayu Mindfulness, said the Budget’s recognition of mental health marks an important shift. “Mental health has too long remained at the margins of public discourse, despite its profound influence on productivity, families, and the social fabric of our nation. The proposal to establish NIMHANS 2.0 to widen access to specialised care signals a necessary recalibration of national priorities,” he said.

The Budget’s emphasis on institutional strengthening also drew attention from the diagnostics industry. Rishubh Gupta, Managing Director for India and Neighbouring Markets at Roche Diagnostics India, said early diagnosis must accompany infrastructure expansion. “As national institutions, including mental health services, are strengthened, robust diagnostics and equitable investment in screening remain critical to enabling early and accurate diagnosis and effective disease management,” he said.

District hospitals are expected to play a central role in the trauma care push, particularly in rural and semi-urban areas where they serve as the first point of contact for accident victims and emergency cases. Improved emergency response is seen as critical not only for survival outcomes but also for reducing long-term physical disability and psychological trauma.

The Budget however did not outline timelines or funding details for the proposed institutions and trauma centres.