36 life-saving medicines fully exempted from customs duty: FM Sitharaman

Budget 2025: This decision is part of a broader push to make essential healthcare more affordable, especially for cancer patients struggling with the high costs of treatment

In a landmark move to ease the financial burden on patients, Finance Minister Nirmala Sitharaman announced in the Union Budget 2025-26 that 36 life-saving medicines will now be completely exempt from customs duty.

 

This decision is part of a broader push to make essential healthcare more affordable, especially for cancer patients who have long struggled with the rising costs of treatment.

 

What’s changing?

 

Announced on February 1, 2025, the new policy goes beyond customs duty exemption. It also proposes a 5 per cent concessional duty on these critical drugs, along with a full customs duty exemption on raw materials used in their manufacturing. This move is expected to make these medicines more accessible to millions of patients across India. 

 

A step forward after 2024’s GST cuts

 

This announcement follows the government’s 2024 decision to slash GST on three major cancer drugs—Trastuzumab Deruxtecan, Osimertinib, and Durvalumab—in February 2024. Health experts have since urged the government to extend such tax relief to other targeted therapies and advanced cancer treatment equipment, such as radiotherapy machines and robotics, which currently face customs duties of up to 37 per cent.

 

Why this matters

 

Cancer treatment costs have been a major concern for Indian families. The medical community has consistently highlighted the urgent need to reduce expenses related to cancer care. This latest Budget announcement directly addresses those concerns, offering a lifeline to countless families struggling with high treatment costs.

 

Finance Minister Sitharaman stated that this move underscores the government’s commitment to making healthcare more affordable and accessible. With cancer cases rising sharply across the country, reducing financial stress on patients is crucial for improving treatment outcomes.  ALSO READ: Startups get another Rs 10k crore 'Fund of Funds' fillip in Budget 2025

 

More good news: Cancer care centres in every district

 

In addition to the customs duty exemptions, Sitharaman revealed plans to establish cancer care centres in every district of India. This initiative aims to bring quality cancer treatment closer to patients, eliminating the need for long, costly journeys to major cities.