In a significant move to alleviate the financial burden on patients, Finance Minister Nirmala Sitharaman announced in the Union Budget 2025-26 that 36 life-saving medicines will be fully exempted from customs duty.
This initiative is part of a broader strategy aimed at reducing the cost of essential healthcare treatments, particularly for cancer patients, who have long advocated for more affordable options.
The announcement, made on February 1, 2025, includes a proposed 5% concessional duty on these medicines, along with a complete exemption from customs duties for their manufacturing.
This is expected to make critical medications more accessible to millions of patients across India.
In February 2024, the government slashed GST (Goods and Services Tax) from three major cancer drugs: Trastuzumab Deruxtecan, Osimertinib and Durvalumab. Health experts have been saying that this move should extend to targeted therapy drugs as well as advanced cancer treatment equipment like radiotherapy machines and robotics, most of which have around 37% in customs duties.
The medical sector has been vocal about the need for reduced costs in cancer treatment, and this latest budget aligns with those demands, providing much-needed relief to families facing the high expenses associated with cancer care.
Sitharaman emphasised that this decision reflects the government’s commitment to improving healthcare affordability and accessibility. The exemption is particularly crucial given the rising number of cancer cases in India. With many patients requiring long-term treatment, reducing the financial strain is vital for improving health outcomes.
The finance minister also announced provisions to set up cancer care centers in all districts of India during her presentation of the Union Budget for 2025-26.
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