Introduction

India is facing a mental health crisis that is enormous in scale, largely invisible in public discourse, and deeply underfunded. Approximately 197 million people — about 14.3% of the population — live with some form of mental disorder, ranging from depression and anxiety to severe conditions that require sustained psychiatric care. 

Yet more than 80% of those who need treatment never receive it. The treatment gap is not a policy footnote; it is an ongoing human emergency that touches every community, every workplace, and every family in India. 

Against this backdrop, mental health CSR India is still a fraction of what it needs to be — but that is beginning to change.

The barriers to treatment are well understood. India has approximately 0.3 psychiatrists per 100,000 people — one of the lowest ratios in the world. Mental health infrastructure is concentrated in urban areas, with rural communities often having no accessible service at all. 

Stigma remains powerful: the fear of being labelled “pagal” deters people from seeking help even when services are available.

Public spending on mental health is less than 1% of the total health budget. These are not problems that the government can solve alone, and Schedule VII of the Companies Act 2013 provides corporate India with both the legal framework and the moral call to act.

The Scale of the Challenge

The numbers bear repeating because they are so frequently underestimated. Around 197 million Indians are living with mental health conditions. India accounts for nearly 15% of all disability-adjusted life years (DALYs) attributable to mental disorders globally.

Depression and anxiety are among the leading causes of workplace absenteeism and reduced productivity. Suicide is the leading cause of death among young adults in India aged 15 to 29.

These statistics represent real people — employees who cannot focus at work, mothers unable to care for their children, young students whose academic trajectories are derailed by untreated anxiety. They also represent a significant economic cost.

The World Health Organization has estimated that mental health conditions cost the global economy approximately $1 trillion annually in lost productivity. India’s share of that cost is substantial.

The government has made efforts to respond. The National Mental Health Programme has been running for decades. The National Tele Mental Health Programme (Tele-MANAS), launched in 2022, provides 24/7 free tele-counselling and psychiatric support and had handled over 2.38 million calls by mid-2025. These are meaningful initiatives. 

Mental Health CSR India: The Schedule VII Case

Mental health qualifies for CSR funding under Schedule VII in two principal ways.

• First, it falls under the promotion of healthcare — explicitly listed in Schedule VII as an eligible CSR activity under the Companies Act 2013.

• Second, where mental health programmes are delivered in the context of livelihood or women’s empowerment, they qualify under those heads as well.

 A mental health programme delivered to women in a self-help group network, for example, can simultaneously qualify under health and women’s empowerment — a strong case for integration.

The legal clarity on Schedule VII eligibility removes one barrier that previously caused CSR committees to hesitate. Mental health is not a peripheral or experimental CSR category — it is a core health issue with explicit statutory backing. 

What Mental Health CSR India Looks Like in Practice

Mental health CSR India programmes take two broad forms: workplace wellness and community mental health. Both are important. Both are underinvested. And both produce measurable returns.

Workplace mental health programmes address the mental wellbeing of a company’s own employees and, in many cases, their families. These programmes include Employee Assistance Programmes (EAPs) that provide confidential counselling services, mental health awareness campaigns that reduce stigma within the organisation, manager training to identify and sensitively respond to signs of distress in team members, and structured resilience-building initiatives. 

The business case is direct: employees with good mental health are more productive, more engaged, and less likely to leave. Companies with strong workplace mental health programmes report lower absenteeism, higher retention, and stronger employee satisfaction scores.

Community mental health programmes extend the reach of corporate investment beyond the company’s own workforce. These programmes fund counsellors in government schools, community mental health camps in underserved areas, training for frontline health workers (ASHAs, ANMs) to screen for mental health conditions and make referrals, and awareness campaigns in rural communities to reduce stigma.

The impact here is harder to measure but is potentially transformative: a community that recognises mental health conditions and responds with support rather than shame is a community where treatment seeking increases and human suffering decreases.

Samabhavana’s health programmes — described in more detail on our health page — take a holistic view of community wellbeing, integrating mental health support with physical health and social support structures.

This integrated approach is more effective than stand-alone mental health interventions because mental health is inseparable from physical health, economic security, and social belonging.

The Workplace Dimension

Indian workplaces are under considerable mental health pressure. The acceleration of working hours, the blurring of work-life boundaries, and the persistent culture in many organisations of presenting strength rather than vulnerability create conditions where mental health deteriorates silently. 

Research suggests that India’s workforce experiences among the highest stress levels in Asia, with significant proportions reporting burnout, anxiety, and sleep disturbance.

The Mental Healthcare Act 2017 established a right to mental health care in India, and while its implementation has been uneven, it has created a normative expectation that employers have responsibilities in this area. 

Progressive companies are moving beyond EAPs — which are often underutilised because they feel clinical and confidential — toward cultures of psychological safety where mental health is discussed openly and help-seeking is normalised.

For CSR heads, the workplace mental health angle creates an interesting opportunity to fund programmes that serve both internal (employee) and external (community) populations — maximising Schedule VII eligibility while building internal culture simultaneously.

Samabhavana’s Approach – Mental Health CSR

Samabhavana brings to mental health CSR the same characteristics that define its work across all programme areas: deep community relationships, trained field staff, multi-year programme design, and rigorous outcome tracking.

We understand that mental health support cannot be delivered through a single awareness camp or a one-day workshop. It requires sustained presence, trusted relationships, and integration with the broader social support ecosystem of the community.

We work with corporate partners to design mental health programmes that are honest about what they can and cannot achieve in a given timeline — and that build toward sustainable impact rather than brief visibility. 

Learn more about our approach to health programmes on our health page, and explore our work across related sectors including women empowerment and skill development.

The Workplace Wellness Policy Landscape

India’s regulatory environment is slowly catching up with the mental health crisis. The Mental Healthcare Act 2017 established a legal right to mental health care and placed obligations on establishments to ensure that employees with mental illness are not discriminated against. 

The Occupational Safety, Health and Working Conditions Code 2020 extends welfare provisions to a broader workforce.

While implementation of these frameworks remains uneven, the regulatory direction is clear:

• Employer responsibility for employee mental wellbeing is becoming part of India’s formal legal framework, not just a progressive HR practice.

• For CSR heads and HR leaders, this regulatory context reinforces the case for investment.

Mental health programmes that create genuinely supportive workplace cultures and extend support to community populations are not just good social investments — they are increasingly aligned with the direction of Indian law.

Companies that build this capability now are ahead of a curve that will become steeper over the next decade.

The Government of India’s National Mental Health Policy, last updated in 2014 and under revision, articulates a vision of universal mental health coverage — a vision that the current public infrastructure cannot deliver without substantial private and civil society co-investment. 

CSR-funded programmes that complement government services rather than duplicating them, that extend reach to populations the public system does not serve, represent exactly the kind of strategic co-investment that India’s mental health challenge requires.

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 FAQ

Q1: What is mental health CSR India and is it eligible under Schedule VII? 

Mental health CSR India refers to corporate-funded programmes addressing mental health awareness, prevention, and treatment support in communities and workplaces. It is eligible under Schedule VII of the Companies Act 2013 as a healthcare CSR activity, making it a qualifying use of the mandatory 2% net profit CSR spend.

Q2: How many people in India are affected by mental health conditions? 

Approximately 197 million people — around 14.3% of India’s population — live with some form of mental disorder. More than 80% of those who need treatment do not receive it, due to a severe shortage of mental health professionals, poor infrastructure, and widespread stigma.

Q3: What is the Tele-MANAS programme? 

Tele-MANAS is India’s National Tele Mental Health Programme, launched in 2022, providing free 24/7 tele-counselling and psychiatric services through a national helpline. By mid-2025, it had handled over 2.38 million calls, making it one of India’s most impactful public mental health initiatives.

Q4: What does a corporate mental health CSR programme include? 

A comprehensive mental health CSR programme includes Employee Assistance Programmes (EAPs), manager sensitisation training, community mental health camps, training for frontline health workers to screen and refer, and awareness campaigns to reduce stigma. The most effective programmes address both internal (employee) and external (community) populations.

Q5: Why is mental health under-represented in India’s CSR spend? 

Mental health has historically been under-represented in CSR due to stigma, difficulty in measuring outcomes, and a lack of qualified NGO partners with credible delivery capability. These barriers are reducing as awareness grows, Schedule VII eligibility is well established, and the business case for employee mental health is documented.

Q6: How can companies partner with Samabhavana on mental health CSR?

Samabhavana designs and delivers community and workplace mental health programmes with multi-year frameworks, trained counsellors, frontline worker training, and robust outcome measurement. Contact us to discuss a programme aligned with your CSR goals.

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CONCLUSION

India’s mental health crisis is not going away. With 197 million people affected and more than 80% untreated, the gap between need and provision is simply too large for government alone to close. 

Corporate India — through mental health CSR India programmes designed with care, backed by Schedule VII compliance, and delivered by experienced implementing organisations — has both the means and the mandate to make a difference.

This is not charity. It is investment in the people who drive India’s economy, the communities where employees live, and the social fabric that holds everything together.

Contact Samabhavana to explore how your company can design a mental health CSR programme that creates real, lasting change — for your workforce, for your community, and for your CSR impact record.