- Union Budget 2026-27 removes customs duty on 17 cancer-related drugs and medicines
- This exemption aims to reduce prices and improve access to imported cancer therapies
- Seven rare diseases will also receive customs duty relief for personal drug imports
The Union Budget 2026-27 has delivered significant relief to cancer patients and families coping with high treatment costs, with Finance Minister Nirmala Sitharaman announcing the removal of basic customs duty on 17 cancer related drugs and medicines. The move is aimed at making life saving therapies more affordable and improving access to essential treatment, particularly for patients dependent on imported medicines for complex and advanced cancers.
Presenting the Budget in Parliament, Sitharaman said the duty exemption would directly help reduce the prices of critical drugs used across multiple cancer treatments. Imported oncology medicines often attract basic customs duty, contributing significantly to their final retail price. By eliminating this levy, the government expects cost savings to be passed on to patients, easing one of the largest financial burdens associated with cancer care.
In addition to the cancer drug exemptions, the Finance Minister announced that seven more rare diseases will be brought under customs duty relief. Under the proposal, personal imports of drugs, medicines and foods for special medical needs used in the treatment of these rare diseases will be exempt from import duties. This measure is expected to especially benefit patients who rely on personalised or niche therapies that are not manufactured domestically and are often brought into the country on a named patient basis.
India has long grappled with the high cost of cancer treatment, with imported medicines forming a major component of therapy for several cancers. According to health experts, even marginal reductions in drug prices can translate into substantial savings for families undergoing prolonged treatment cycles. The customs duty exemption on 17 cancer related drugs is therefore being seen as a step towards mitigating catastrophic out of pocket expenditure for patients, particularly those without comprehensive insurance coverage.
The government has not publicly disclosed the full list of drugs covered under the exemption but clarified that they include widely used and high cost cancer medicines. Medicines for rare diseases, which often lack Indian manufacturing alternatives due to limited patient populations and high production costs, are also expected to benefit from reduced landed prices under the new duty free regime.
Officials said the measure aligns with the government's broader focus on healthcare affordability, alongside initiatives to strengthen domestic pharmaceutical manufacturing and rationalise customs duties where imports remain unavoidable. By targeting essential cancer and rare disease medicines, the Budget attempts to balance the objectives of self reliance with immediate patient needs.
Industry observers have welcomed the announcement, noting that customs duty removal is one of the most direct policy tools available to address medicine affordability in the short term. However, experts caution that while the move will lower drug prices, overall treatment costs, including hospitalisation, diagnostics and supportive care, remain high for cancer patients, underscoring the need for a broader healthcare financing strategy.
Nevertheless, the exemption of customs duty on cancer drugs and the expansion of relief for rare diseases marks one of the most targeted patient centric measures in the Budget 2026-27. For thousands of families navigating cancer and rare disease care, the announcement offers the promise of tangible, if partial, financial relief at a time when treatment costs continue to rise.
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