Budget 2026: Customs Duty Removed on 17 Cancer Drugs, Major Relief for Patients

Budget 2026 Focuses on Affordable Life-Saving Medicines

Union Finance Minister Nirmala Sitharaman has announced significant healthcare relief in the Union Budget 2026 by eliminating basic customs duty on a range of critical cancer medicines and extending duty exemptions to treatments for rare diseases. The measures are aimed at easing the financial burden on patients who depend heavily on imported, high-cost therapies.

Customs Duty Relief for Cancer Treatments

While presenting the Budget in Parliament, the Finance Minister stated that basic customs duty has been removed on 17 cancer-related drugs . Many advanced oncology medicines used in chemotherapy, targeted therapy, and immunotherapy are imported and become substantially more expensive due to customs duties. The removal of this levy is expected to bring down retail prices, making modern cancer treatment more accessible across public and private healthcare systems.

Expected Impact on Patient Expenditure

Medical experts point out that drug costs form a major component of cancer care, especially for long-duration treatments. Even a modest reduction in medicine prices can significantly lower overall expenses over multiple treatment cycles. The exemption is therefore expected to reduce out-of-pocket spending, particularly for patients without adequate insurance coverage, and help families avoid catastrophic health expenditure.

Expanded Support for Rare Disease Patients

In addition to cancer drugs, the Budget has extended customs duty exemptions to medicines and specialised nutritional products used in the treatment of seven rare diseases . These benefits apply to personal imports, recognising that many rare disease therapies are not produced domestically due to limited demand and high manufacturing costs. For affected families, import duties often add a prohibitive layer to already expensive treatments.

Important Facts for Exams

• Basic customs duty has been removed on 17 cancer-related medicines.

• Duty-free personal imports are permitted for drugs used in select rare diseases.

• Imported medicines account for a large share of cancer treatment costs in India.

• Reducing out-of-pocket healthcare expenditure is a key objective of Budget 2026.

Balancing Patient Needs and Industrial Policy

Government officials said the decision reflects a calibrated approach—supporting healthcare affordability while continuing to encourage domestic pharmaceutical manufacturing where feasible. By rationalising duties in areas where imports are unavoidable, the Budget prioritises immediate patient needs. Health policy analysts, however, note that medicine costs are only one part of the cancer care burden, and broader reforms in diagnostics, hospital costs, and health insurance will remain crucial for long-term relief.