The Economic Survey 2023-24 was tabled by Union Finance and Corporate Affairs Minister Nirmala Sitharaman in Parliament on July 22. For the first time, the economic impact of mental health was discussed in the Survey which associated mental health disorders with “significant productivity losses”. It also stated that mental health problems lead to “absenteeism, decreased productivity, disability, increased healthcare costs, among others”. The Survey noted that 10.6 per cent of adults in the country suffered from mental disorders. It also showed a higher prevalence of mental morbidity in urban metro regions (13.5 per cent) as compared to rural areas (6.9 per cent) and urban non-metro areas (4.3 per cent).
The Survey also pointed out poverty as a reason for increasing mental health issues among people. It showed that “stressful living conditions, financial instability, and a lack of opportunities for upward mobility contribute to heightened psychological distress”. It also highlighted an increasing prevalence of poor mental health among adolescents exacerbated by the Covid-19 pandemic. Citing the NCERT’s Mental Health and Well-being of School Students Survey, it showed that 11 per cent of students reported feeling anxious, 14 per cent as feeling extreme emotion, and 43 per cent experiencing mood swings.
Mental health issues are highly prevalent, yet are poorly managed and are affecting a significant number of our population. Unfortunately, people are not reporting these conditions as the cost of the available medications and therapies often proves challenging. Out of an estimated 150 million people needing mental health services, only fewer than 30 million seek help. Lack of mental health professionals is crippling in India, with merely 0.3 psychiatrists, 0.07 psychologists, and 0.07 social workers available per 100,000 people. There is a need for comprehensive policies to handle India’s mental health crisis and the need to increase the workforce in the sector.
Mental health is a key area of concern that can have a significant impact on the productivity and economy of the country and it should get the attention of the new budget. In the budget of 2024-25, the government should remove or reduce the 18 per cent Goods and Services Tax (GST) on mental health services. By removing or limiting the 18 per cent GST on mental health services, and allocating resources strategically, it would help India become a mentally resilient society. The government should also incorporate mental health services into healthcare insurance coverage.
There is an immediate need to strengthen India’s mental health workforce which is presently just one psychiatrist per two lakh people. The government can introduce scholarships to train professionals to help reduce this gap. Extending tax benefits to private practitioners is crucial, given the high operational costs for the average therapist. In addition to acknowledging the financial difficulties experienced by private practitioners, this change would help lower the cost and increase public accessibility to mental health care. This will help citizens access mental healthcare without burdening them financially.
