The Economic Burden of Mental Health in India: A Deep Dive

World Mental Health Day is observed on October 10 to emphasise the importance of mental health and raise awareness about it. In India, concerns about the state of mental health services have persisted for a long time, particularly since the COVID-19 pandemic. As mental health issues rise, the demand for related services is also increasing.

This article will discuss the current landscape of India’s mental health industry, its challenges, and future opportunities.

Current Landscape of Mental Health in India

According to the WHO, 56 million Indians suffer from depression and anxiety disorders, and one in eight individuals is grappling with some mental health issue. Notably, 14% of India’s population is affected by mental disorders, contributing to 15% of the global mental health burden. The economic impact of mental health issues could cost India between $2-3 billion by 2030 and $1 trillion globally.

The Disability-Adjusted Life Years (DALY), a measure of years lost due to illness, stands at 2,400 per 1,00,000 population in India, indicating the severity of the mental health burden.

Shortage of Mental Health Services

Despite growth in the industry, the availability and quality of mental health services in India remain critically limited. There are only 0.75 psychiatrists and 0.07 psychologists/social workers available per 1,00,000 population. In contrast, the United States has more than 30 psychologists per 1,00,000 individuals. This shortage is particularly felt in rural and underserved areas.

According to the WHO, India’s population of 1.4 billion requires approximately 20,000 clinical psychologists and 35,000 mental health social workers. However, currently, only about 1,000 specialists are available.

Challenges Facing the Mental Health Industry

Lack of Awareness: There is a significant lack of awareness and education regarding mental health in society. Many individuals do not recognise that they are struggling with mental health issues, which prevents them from seeking help.

Stigma and Discrimination: Social stigma surrounding mental disorders is a major problem. Over 70% of people hold stigmatised beliefs about mental disorders, and nearly 40% do not want a mentally ill person as a neighbour.

Resource Constraints: The severe shortage of mental health professionals and limited government funding are the biggest barriers to the industry’s growth.

Social Fear: Individuals who are aware of their mental health issues often hesitate to seek help due to fear of discrimination and stigma from society and peers. This social stigma becomes a significant barrier for individuals struggling with mental health problems.

Government Initiatives in Mental Health

In November 2022, the Ministry of Health and Family Welfare launched the ‘National Suicide Prevention Strategy’, aiming to reduce the suicide mortality rate by 10% by 2030 compared to 2020. Additionally, the 2022-23 budget introduced the ‘National Tele-Mental Health Program’ (NTMHP), allocating Rs 120.98 crore for this initiative.

Budget Allocation for Mental Health

On July 23, 2024, Finance Minister Nirmala Sitharaman presented a budget that allocated Rs 90,958.63 crore to the Ministry of Health, which is a 12.9% increase from the revised estimate of Rs 80,517.62 crore for 2023-24. Out of this, Rs 87,656.90 crore is allocated to the Department of Health and Family Welfare and Rs 3,301.73 crore to the Department of Health Research.

In the 2024 budget, the allocation for the National Tele-Mental Health Program has increased to Rs 90 crore from the previous Rs 65 crore.

Future of the Mental Health Industry

The global mental health market is expected to reach $540 billion by 2030, up from the current $380 billion, with the largest share coming from electronic health records.

Additionally, according to UnivDatos Market Insights, the mental health industry is projected to grow at a compound annual growth rate (CAGR) of 15% by 2028.

Moreover, Statista indicates that the revenue of the Indian mental health industry could rise from $80 million in 2016 to $1.20 billion by 2029.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

This article is for informational purposes only. This is not investment advice. Disclaimer: Teji Mandi Disclaimer