This chapter focuses on the nature of social policy with reference to mental health policy and planning of services. The contribution of the discipline of clinical psychology in the formulation of policies has been discussed. Epidemiological data pertaining to the prevalence of mental disorders in India have been presented to highlight the enormity and magnitude of the problem. A critique of current policies has been presented. The final section deals with critical issues which have important implications for policy planning. These include a discussion on human rights, stigma, and family caregiving and cultural factors.