Customs Duty Scrapped on 17 Cancer Drugs

Union Finance Minister Nirmala Sitharaman has announced major relief for patients battling cancer and rare diseases in the Union Budget 2026. The Budget removes basic customs duty on 17 cancer-related drugs and extends duty exemptions to treatments for seven rare diseases, aiming to reduce the financial burden of life-saving therapies that are largely dependent on imports.

Relief for Cancer Patients Through Duty Exemption

Presenting the Budget in Parliament, Sitharaman said the removal of basic customs duty on 17 cancer drugs is intended to make advanced and complex treatments more affordable. Imported oncology medicines currently attract customs duty, which significantly inflates retail prices. By eliminating this levy, the government expects a direct reduction in treatment costs across several high-value cancer therapies, improving access for patients across income groups.

Impact on Treatment Costs and Access

Health experts have noted that imported medicines form a substantial portion of overall cancer treatment expenses in India. Even marginal reductions in drug prices can translate into meaningful savings over prolonged treatment cycles. The duty exemption is therefore expected to reduce out-of-pocket expenditure, particularly for patients without comprehensive health insurance, and help prevent catastrophic healthcare spending among vulnerable households.

Extended Relief for Rare Diseases

Beyond oncology drugs, the Budget extends customs duty relief to medicines and specialised foods used in the treatment of seven additional rare diseases. Under the proposal, personal imports of such drugs and medical nutrition products will be exempt from import duties. This measure benefits patients who rely on personalised or niche therapies that are not manufactured domestically due to limited demand and high production costs.

Important Facts for Exams

• Basic customs duty has been removed on 17 cancer-related drugs.
• Duty-free personal imports allowed for medicines treating select rare diseases.
• Imported drugs significantly influence cancer treatment costs in India.
• Healthcare affordability is a stated objective of Union Budget 2026.

Healthcare Affordability and Policy Balance

Officials said the move aligns with the government’s broader strategy to improve healthcare affordability while continuing to support domestic pharmaceutical manufacturing. By rationalising duties where imports are unavoidable, the Budget seeks to balance self-reliance with urgent patient needs. While industry observers have welcomed the decision as a quick and effective cost-relief measure, experts cautioned that overall cancer care expenses remain high due to hospitalisation, diagnostics, and supportive treatment, underlining the need for wider healthcare financing reforms.