Establishment of cancer care centres and enhanced social security provisions for online platform workers. Boosting medical tourism in the country, the FM announced, a ‘Heal in India’ campaign in partnership with the private sector
New Delhi:In a move aimed to provide relief to patients battling severe chronic ailments, Union Finance Minister Nirmala Sitharaman on Saturday announced the expansion of the list of lifesaving drugs and medicines fully exempted from Basic Customs Duty (BCD) in the Union Budget 2025-26. This initiative aims to reduce the financial burden on patients suffering from cancer, rare diseases, and other critical health conditions.
“Basic customs duty exempted for 36 life-saving drugs, while 6 life-saving drugs will have 5 per cent customs duty,” the FM said, as she presented her eighth consecutive budget and the NDA government’s second full Union Budget of its third term.
“This will provide relief to patients, particularly those suffering from cancer, rare diseases, and other severe chronic diseases,” the FM said.
As part of this measure, the government has added 36 more lifesaving drugs and medicines to the fully exempted category.
These include advanced treatments for cancer, genetic disorders, and immune-related conditions, making them more affordable for patients in need. Additionally, six more lifesaving medicines have been included in the concessional duty list, attracting a reduced customs duty of 5 percent.
To further support accessibility, full exemption and concessional duty will also apply to the bulk drugs used in the manufacture of these medicines.
Recognizing the crucial role of pharmaceutical companies’ Patient Assistance Programmes (PAPs) in providing free medicines to those in need, the government has also expanded this category.
A total of 37 more medicines have been added to the fully exempted list when supplied free of cost under 13 new Patient Assistance Programmes. This move will significantly benefit patients who rely on such programs for expensive and critical treatments.
The newly exempted drugs cover a wide range of conditions, including cancer treatments such as Onasemnogene abeparvovec, Asciminib, Daratumumab, and Teclistamab. Treatments for rare diseases like Risdiplam, Spesolimab, Velaglucerase Alpha, and Agalsidase Alfa have also been included.
Additionally, medicines for severe chronic illnesses such as Alirocumab, Evolocumab, and Inclisiran are part of the expanded exemption list.
Medical Tourism
Further, in a bid to boost medical tourism in the country, the FM announced, a ‘Heal in India’ campaign in partnership with the private sector.
Visa procedures have also been simplified for patients seeking treatment in India to enhance the country’s medical tourism sector.
Medical Tourism in India is estimated to be around $9 billion.
On the Global Medical Tourism Index, India stands at number 10.
The country has seen significant growth in medical tourism in the past year, especially due to the rise of the AYUSH system (Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homeopathy).
In 2023, the government also implemented medical visa provisions to facilitate the entry of international tourists seeking health and wellness treatments in the country.
Sitharaman also announced 10,000 additional seats in medical colleges as well as daycare cancer centres in all district hospitals.
Among other initiatives for the healthcare sector, Sitharaman in her Union Budget for FY25 announced the the establishment of cancer care centres and enhanced social security provisions for online platform workers.
The government will establish cancer care centres in every district across India by FY25 and 200 cancer day-care centres will be added by the end of the financial year, aiming to make cancer treatment more accessible across the country.
In view of the growing role of 1 crore gig workers across the country in the digital economy, the government has proposed a series of measures to improve their welfare.
Gig workers engaged with online platforms will be provided with identity cards and registered on the e-Shram portal, which will enable them to receive healthcare benefits under the PM Jan Arogya Yojana.
Meanwhile, the Centre’s healthcare Budget saw a 9.78 per cent increase to Rs 99,857 crore for 2025-26, with a 28.8 per cent rise in the allocation for Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), which is now at Rs9,406 crore.