The depressive illness is a major cause of psychosocial disability in the world causing great impairment of functional capacity, social participation, and quality of life. Although the mental health issue has gained momentum in the world and national policy agenda, the care provided to people with depressive illness is still very disparate and ad hoc in nature. This chapter investigates the new policy developments and prospects of policy in disability care of the depressive illness with certain correspondence to the Sustainable Development Goals (SDGs) and the Indian Mental Healthcare Act (MHCA), 2017. Based on the rights-based and person-centered approaches, the chapter puts depressive illness in the context of modern notions of psychosocial disability and considers the corresponding global commitments, such as SDG 3 (Good Health and Well-Being) and SDG 10 (Reduced Inequalities). Indian policy environment is discussed to point out the legislative progress, implementation issues, and gaps in access, equity, and interactions between sectors. The specific focus is on the models of community-based care, the digital mental health programs, and the methods of integrated service delivery as the policy innovations. The chapter ends with suggestions of strategic policy points to enhance inclusive, accessible, and sustainable disability care systems to depressive illness in low- and middle-income country settings.