India’s healthcare sector is set for transformative changes with the introduction of the Union Budget 2025, announced by Finance Minister Nirmala Sitharaman on February 1, 2025. A key feature of the budget is the full exemption from basic customs duty on 36 life-saving medicines, aimed explicitly at patients battling life-threatening illnesses such as cancer and rare diseases. This exemption, effective from February 2, 2025, aims to substantially reduce the financial burden on patients, making these necessary treatments more affordable.
Among the drugs benefiting from this exemption are treatments for serious conditions, including spinal muscular atrophy and Gaucher disease, with notable names like Onasemnogene Abeparvovec and Velaglucerase Alpha. The prices of some of these treatments are expected to decrease considerably. For example, drugs used to treat cancer, such as Daratumumab and Atezolizumab, could see price drops ranging from ₹10,000 to ₹30,000 per dose, making them much more accessible for patients across the country.
During her budget speech, Sitharaman stated, "To provide relief to patients, particularly those suffering from cancer, rare diseases, and other severe chronic diseases, I propose to add 36 lifesaving drugs and medicines to the list of medicines fully exempted from Basic Customs Duty (BCD)." This comprehensive approach not only targets cancer treatments but also addresses chronic conditions and rare genetic disorders, making strides in bringing down the high costs associated with such therapies.
Dr. Harsh Mahajan, chair of the FICCI Health Services Committee, remarked, “The exemption of 36 lifesaving drugs from basic customs duty will make treatments more affordable for patients suffering from cancer, rare diseases, and chronic conditions.” His emphasis on the importance of such changes indicates wide support among healthcare experts.
The budget also proposes to levy concessional customs duty of 5% on six additional life-saving medicines. This is seen as part of the broader strategy to alleviate healthcare costs. The commitment continues with the government planning to establish 200 daycare cancer centers across district hospitals by 2025-26, bringing treatment closer to patients’ homes.
Healthcare experts have welcomed the nearly 10% increase to the health budget, which now stands at ₹99,858.56 crore. Dr. Krishna Prasad, CMD of Granules India, stated, “Exempting 36 life-saving pharmaceuticals from basic customs duty will significantly improve access to therapies.” His insights reflect the hopes of many professionals involved with health care as they anticipate the positive ramifications of this budget.
It is also worth noting the potential effects on Patient Assistance Programs (PAPs) run by pharmaceutical companies. The budget stipulates full duty exemptions for specified drugs under PAPs, provided they are supplied at no cost and typically aim to improve distribution to patients who might otherwise go without necessary medications.
Alongside the changes to customs duties, the budget allocates funds for the Ayushman Bharat Digital Mission, aiming to bolster digital health services. Dr. Abhishek Jinwal, nodal officer for hospital administration, pointed out the significance of such digital advancements, stating, “While the budget includes health sector funding, focusing on human resource allocation, especially in rural areas, is equally important.”
Industry leaders are optimistic about the new measures. The establishment of daycare cancer centers is considered particularly important, noting the rise of cancer incidents; the Indian Cancer Registry projects annual new cases to reach 1.57 million by 2025. Dr. Mandeep Singh Malhotra, director of surgical oncology at CK Birla Hospital, stressed the importance of such facilities for effective management of patients' needs.
Dr. Azad Moopen, founder and chairman of Aster DM Healthcare, shared his views, saying, “The Union Budget 2025 strengthens India's commitment to... ensuring accessibility, affordability, and quality care for all.” His statement reassures stakeholders of the intent behind the budgetary policies to bridge gaps within the existing healthcare ecosystem.
Significantly, experts from various fields underline concerns for the necessity of follow-through after the announcement. Although the customs exemptions will aid significantly, attention must be directed toward ensuring adequate medical infrastructure and workforce training to manage the increased demand for services stemming from these policy changes. Dr. Bhupendra Singh Shekhawat, chairman of IMA central zone, reflects, “Success will depend on the effective implementation of these initiatives, especially focusing on quality education and trained staff.”
With these strategic budget allocations, the government is making substantial progress toward providing life-saving treatments and enhancing healthcare access for millions of people. Understanding this budget’s impact on patient outcomes is imperative, as it reflects India's commitment to fostering health equity and granting all citizens the opportunity for care when facing life-threatening diseases. The changes brought by this budget could mark the beginning of significant advancements within the Indian healthcare system, as aimed industries prepare for the influx of opportunities.