Low ROI, high purpose? Why psychology remains top choice in India

India’s growing mental health crisis is reshaping career choices, with a rising number of students opting for psychology courses across the country.

Despite global concerns over psychology degree salaries and returns, increasing awareness around mental health, a widening treatment gap and the urgent need for trained professionals are driving this shift.

Demand for psychologists, counsellors and behavioural experts is growing rapidly, while expanding career opportunities in healthcare, education and corporate sectors are making psychology an increasingly relevant career option in India.

While salaries may still vary, the long-term scope and demand for psychology professionals continue to strengthen.

HOW SERIOUS IS INDIA'S MENTAL HEALTH BURDEN?

Government-backed data underscores the scale and urgency of the issue.

The National Mental Health Survey, conducted by the National Institute of Mental Health and Neurosciences (NIMHANS), estimates that nearly 13.7% of Indians experience mental health disorders during their lifetime.

Recent data from the Press Information Bureau (PIB) further highlights the severity, noting that mental health disorders contribute significantly to India’s overall disease burden, with a treatment gap ranging between 70% and 92%.

India also faces a critical shortage of trained professionals, including psychiatrists, clinical psychologists and counsellors, particularly in non-urban areas.

This widening gap between needed, and available professionals is a key reason psychology is gaining importance as an academic discipline.

WHY ARE STUDENTS CHOOSING PSYCHOLOGY DESPITE MODEST PAY?

A report by the Postsecondary Education & Economics Research Centre at American University, based on Yale Tobin Center data, suggests that psychology degrees in some contexts may deliver relatively low or even negative financial returns compared with tuition costs.

Yet student interest remains strong.

Experts say students are increasingly looking beyond immediate salary outcomes.

“There is escalating concern about Indian young adults as well as adults facing mental health challenges, and the numbers are increasing year after year,” says Professor Dr. A.W. Santhosh Kumar, Vice Chancellor, Amity University Mumbai.

He notes that growing awareness of psychological disorders, personality conditions and emotional wellbeing is pushing psychology and behavioural science courses into the spotlight.

This will certainly make this career choice more lucrative and relevant.

Counsellors and therapists are already seeing higher pay, and the bracket is rising. Over time, the scenario could become comparable to Western markets. While also urging institutions to prepare for rising demand.

A MARKET CATCHING UP WITH SOCIAL NEED

Why does the field appear to have a “low ROI” despite high demand?

“What looks like a paradox is actually how imperfect markets operate when social need outpaces monetisation,” says Dr Umesh Kothari, Assistant Dean and Assistant Professor at SP Jain School of Global Management.

The demand for mental health support is undeniable, but it is not yet fully backed by the ability or willingness to pay at scale.

However, he emphasised that students are not misjudging the field.

“They are redefining value itself, factoring in purpose, impact and long-term relevance alongside income,” he says.

Kothari adds that management education is expanding opportunities by integrating behavioural science into areas such as marketing, organisational leadership and people strategy, as well as emerging fields like corporate wellness, user experience research and behavioural insights.

“In that sense, this is less about low returns and more about entering a space early that is still evolving,” he explains.

“The growing interest in psychology, despite modest financial returns, reflects a deeper shift in how young people are defining success. Students today are not choosing careers only through the lens of pay or prestige; they are also responding to rising mental health concerns and their own lived experiences," says Ganesh Kohli, founder, IC3 Movement.

"Psychology is gaining traction not simply because mental health is part of public discourse, but because students are looking for work that feels meaningful and socially relevant. The responsibility of schools, then, is to ensure these choices are well-informed and and grounded in a clear understanding of pathways and outcomes," he adds.

IS PSYCHOLOGY NOW MOVING BEYOND CLINICS?

The demand is no longer confined to hospitals and therapy centres.

Psychology is increasingly being integrated into business and management functions, including:

• Marketing and consumer behaviour

• Organisational leadership

• HR and people strategy

• Corporate wellness programmes

• User experience (UX) research

• Behavioural insights for decision-making

This diversification means psychology graduates are entering industries that did not traditionally recruit them a decade ago.

WHAT DOES EMPLOYMENT DATA INDICATE?

India’s labour market trends also support this shift. The Periodic Labour Force Survey (PLFS) shows steady growth in service-sector employment, particularly in healthcare, education and professional services.

At the same time, government initiatives such as the National Mental Health Programme and expansion of mental health services indicate increasing institutional focus on wellbeing, which is expected to generate more roles in the coming years.

Many experts believe compensation will rise as demand continues to outpace supply. While earnings currently vary based on qualifications, specialisation, cities and experience, clinical practice, corporate consulting and private therapy tend to offer better returns.

WHAT EXPLAINS THE STUDENT RUSH?

The answer lies in a changing definition of career success.

For many students, psychology offers a mix of employability, long-term relevance and social impact. It aligns with growing conversations around stress, anxiety, burnout, relationships and youth wellbeing.

Students are not ignoring financial realities, they are betting on a field whose economic value is still evolving.

As India works to bridge its mental healthcare gap, the need for quality education and training in psychology, counselling and behavioural sciences will become even more critical.

The country’s mental health challenge is real. So is the shortage of professionals. And while pay scales may still be evolving, rising enrolments suggest many see psychology not as a risky choice, but as a future-facing one.