The government has removed customs duty on 36 life-saving medicines, Finance Minister Nirmala Sitharaman announced while presenting the Union Budget 2025-26. This is aimed at reducing the cost of treatment for patients suffering from cancer and rare diseases. In addition to this, customs duty has also been waived on raw materials used to manufacture these drugs.
Along with the complete duty exemption on 36 medicines, six more life-saving drugs will now be subject to a reduced customs duty of 5%. The government has also exempted medicines provided under 13 patient assistance programs from basic customs duty, making treatments accessible to those who rely on financial aid.
Cancer treatment is expensive in India, and high import duties on medicines have been a major concern. According to the National Centre for Disease Control (NCDC), India saw 1.46 million new cancer cases in 2022. The exemption is expected to bring some relief to families struggling with treatment costs. Similarly, around 70 Million Indians are suffering from rare diseases in India.
This announcement follows last year’s reduction of customs duties on three cancer medicines, Trastuzumab Deruxtecan, Osimertinib, and Durvalumab from 10% to nil. As per the reports, healthcare experts have been calling for further tax relief on cancer-related treatments, including radiotherapy machines, which still attract high duties.
As part of its broader healthcare plan, the government has also proposed setting up 200 daycare cancer centres in district hospitals in 2025-26. These centres will provide chemotherapy, immunotherapy, and other essential treatments, reducing the need for patients to travel to major cities.
The government plans to add 10,000 medical seats next year and 75,000 seats over the next 5 years to address the shortage of healthcare professionals. There is also a push to promote medical tourism by improving infrastructure and specialised treatment facilities.
The customs duty exemption and other measures are expected to lower treatment costs and improve access to healthcare for patients across the country.
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Published on: Feb 1, 2025, 3:47 PM IST
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