Introduction: Mental health in children is significantly influenced by socio-economic status, poverty, and income inequality. However, existing child psychiatric research focuses on clinical variables and developed nations. Hence, this study explored the impact of these factors on the psychosocial functioning of children visiting a mental health clinic in India.

Methods: A cross-sectional research design was employed, with data collected from children and their parents/caregivers using the Children’s Global Assessment Scale (CGAS) and Indian Disability Evaluation and Assessment Scale (IDEAS). Participants included 120 children recruited from an outpatient clinic in a tertiary mental healthcare center. Non-parametric tests were employed to examine the influence of socio-economic status and poverty on functioning among the participants.

Results: Our study observed significant differences in functioning scores related to socio-economic status, monthly family income, and sources of income, with family income source significantly affecting disability scores. A significant proportion of the participants scored below the functioning benchmark and above the disability benchmark.

Conclusion: Socio-economic disparities and income inequality significantly influence mental health outcomes. The findings emphasize the role of social determinants of mental health and underscore the importance of integrating mental health services with socio-economic support systems.