In a move aimed at improving healthcare accessibility, Union Finance Minister Nirmala Sitharaman, in her budget speech on February 1, 2025, announced a full customs duty exemption for 36 life-saving medicines. These medicines, primarily targeting cancer and rare diseases, will be exempt from basic customs duty to alleviate the financial burden on patients. Additionally, six other critical drugs will now attract a concessional customs duty of 5%, further reducing the cost of advanced treatments.
Among the drugs receiving the full customs duty exemption are Tepotinib for non-small cell lung cancer, Avelumab, a monoclonal antibody for certain cancer types, Asciminib for white blood cell cancer, Alglucosidase Alfa for Pompe disease, and Mepolizumab for severe asthma. These exemptions will allow patients to access these life-saving treatments at a much lower cost, improving their chances of survival and quality of life.
Sitharaman also introduced a proposal to expand the Patient Assistance Programmes (PAP) of pharmaceutical companies. Medicines under these programs, when supplied free of cost to patients, will remain fully exempt from basic customs duty. Furthermore, the budget outlines the addition of 37 new medicines and the introduction of 13 new PAPs to further assist patients with financial difficulties.
In an effort to strengthen cancer care in India, Sitharaman revealed plans for the establishment of day-care cancer centers at district hospitals across the country. These centers, which will be equipped to administer first-line chemotherapy, will be set up over the next three years, with 200 new centers expected to open in FY26. These centers will provide essential treatment to cancer patients in rural and underserved areas.
Dr. Mandeep Singh Malhotra, a surgical oncologist at CK Birla Hospital in Delhi, emphasized the importance of day-care centers in managing cancer cases effectively. He highlighted that such centers, when properly equipped and supported, could significantly reduce the burden on dedicated cancer care facilities, which are still essential for treating more complex cancer cases.
India is facing a growing cancer burden, with cases projected to increase from 1.46 million in 2022 to 1.57 million in 2025, according to the National Cancer Registry Programme. The International Agency for Research on Cancer has ranked India third globally in terms of cancer cases, behind China and the United States. This makes the budget’s measures, including the customs duty exemptions and the expansion of cancer treatment infrastructure, crucial for meeting the increasing demand for cancer care.
Healthcare experts and industry leaders have welcomed these measures. Harsh Mahajan, chair of the Federation of Indian Chambers of Commerce & Industry (FICCI) Health Services Committee, praised the exemption of 36 life-saving drugs, noting that it would make critical treatments more affordable for patients. He also pointed out that the additional medicines and new patient assistance programs would further ease the financial burden on patients suffering from cancer, rare diseases, and chronic conditions.
Lahari Surapaneni, CEO of Bangalore Hospitals, recognized the expansion of bulk drug import exemptions and PAPs as a strategic move to support India’s growing pharmaceutical ecosystem. She stressed the need for continued investment in healthcare infrastructure, medical research, and preventive health care to ensure the success of these initiatives.
The Union Budget 2025’s healthcare provisions are a step forward in making life-saving medicines more accessible, particularly for patients battling cancer and rare diseases. However, the focus now shifts to implementing these initiatives effectively and ensuring that both rural and urban populations benefit from the expanded access to critical treatments.
In conclusion, with the proposed changes in customs duties and the introduction of additional support programs, the Indian government is taking significant steps to reduce the financial burden on patients in need of advanced medical treatments. However, continuous efforts will be necessary to improve healthcare infrastructure and encourage innovation within the pharmaceutical sector.
