Finance Minister Nirmala Sitharaman Proposes Full Customs Duty Exemption for 36 Life-Saving Medicines

Finance Minister Nirmala Sitharaman announced a full exemption from customs duty on 36 drugs used to treat cancer, rare diseases, and other severe chronic conditions. Previously, the government had reduced customs duties on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab from 10% to zero. This initiative aims to provide relief to patients by making essential medicines more affordable.

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Sitharaman also proposed adding six life-saving medicines to the list that will attract a concessional customs duty of 5%. The exemptions and concessional duties will apply to bulk drugs used in manufacturing these medicines. She highlighted that specified drugs under Patient Assistance Programmes are fully exempt from Basic Customs Duty (BCD) if supplied free of charge to patients.

Healthcare Access and Affordability

The Indian Pharmaceutical Alliance Secretary General, Sudarshan Jain, stated that these exemptions will enhance access to critical treatments nationwide. Apollo Hospitals Founder Prathap C Reddy praised the government's efforts in setting up 200 daycare cancer centres and including critical medicines for rare diseases under custom duty exemptions. These steps are expected to reduce out-of-pocket expenses for patients.

Max Healthcare Institute Chairman Abhay Soi mentioned that adding 10,000 medical seats by next year and aiming for 75,000 over five years will help improve the doctor-patient ratio. Establishing 200 cancer centres will significantly boost oncology care across India. The customs duty exemption on critical drugs is seen as a necessary step to make advanced treatments more affordable.

Industry Reactions and Future Implications

Alembic Pharmaceuticals MD Shaunak Amin noted that duty exemptions on life-saving medicines and bulk drugs would strengthen industry collaboration among healthcare providers, policymakers, and manufacturers. Paras Health MD Dharminder Nagar commended the government's decision, stating it will lower treatment costs and make healthcare more accessible for patients.

Deloitte India Partner Shuchi Ray remarked that reducing import duties on cancer medicines is a move towards making healthcare affordable for all. Biocon Group Chairperson Kiran Mazumdar-Shaw observed that the Union Budget reflects a focus on stable growth. She added that while the exemption improves access to imported medicines, GST relief for domestically developed drugs would further benefit patients.

The government's decision to exempt customs duty on essential drugs is expected to have a significant impact on healthcare affordability in India. By reducing costs associated with life-saving treatments, these measures aim to improve access and support national efforts against non-communicable diseases.