Budget 2026 Brings Relief: Customs Duty Removal on 24 Life-Saving Drugs to Lower Treatment Costs
In a significant move aimed at enhancing healthcare accessibility, the Union Budget 2026-27 has announced the removal of basic customs duty on 17 high-cost cancer medicines and seven rare disease drugs. This decision is expected to lead to a notable reduction in the prices of these imported life-saving treatments, making advanced therapies more affordable for patients across India.
Direct Impact on Cancer and Rare Disease Treatment Expenses
The customs duty exemption covers critical cancer medications including Ribociclib, Venetoclax, Ibrutinib, Ponatinib, Dabrafenib, Trametinib, Toripalimab, and Ipilimumab. For rare conditions, drugs targeting primary hyperoxaluria and cystinosis are among those benefiting from the duty removal. Typically, imported medicines attract customs duties ranging from 5% to 11%, and this elimination is projected to directly lower the landed cost of these essential treatments.
Bhansu Prakash Kalmath, partner and healthcare industry leader at Grant Thornton Bharat, emphasized the relief this brings to patients. "Many of these cancer therapies cost anywhere between Rs 20,000 and Rs 1.5 lakh per month in India. Removing basic customs duty on 17 high-cost cancer drugs is a major relief for patients," he stated.
Industry and Expert Reactions to the Healthcare Initiatives
Sharvil Patel, Managing Director of Zydus Lifesciences, welcomed the move, noting that "exempting 17 cancer drugs and seven rare disease drugs from customs duty will improve patient access." He added that "Budget 2026 has touched upon the important pillars of accessibility, affordability, and patient-centricity that are an urgent need."
However, not all feedback was uniformly positive. Gopa Nair of The Working Group on Access to Medicines and Treatment expressed concerns, suggesting that "this indirect measure does little to guarantee affordable access and allows states to sidestep its constitutional obligation to ensure affordability and accessibility of medicines." Nair advocated for more direct legal tools under the Patents Act, such as compulsory licensing and stricter patent scrutiny.
Broader Healthcare Sector Reforms and Budgetary Allocations
Beyond duty exemptions, Budget 2026 introduces comprehensive reforms to strengthen India's healthcare infrastructure. The budget proposes the creation of a national network of 1,000 accredited clinical trial sites, aimed at aligning India's drug approval processes with global standards. This initiative is expected to enable faster and more predictable regulatory clearances through a dedicated scientific review cadre.
Kiran Mazumdar Shaw, chairperson of Biocon, highlighted the strategic vision behind these measures. "With a Rs 10,000-crore commitment, expansion of NIPER institutions, creation of 1,000 accredited clinical trial sites, and strengthening of CDSCO to global approval standards, the strategy reflects a deep understanding of what it takes to compete globally," she remarked.
The budget also unveils the Biopharma SHAKTI programme (Strategy for Healthcare Advancement through Knowledge, Technology, and Innovation) with an outlay of Rs 10,000 crore over the next five years. This initiative is designed to boost India's biopharma manufacturing ecosystem and enhance domestic capabilities in advanced drug production.
Financial Commitments and Regulatory Predictability
Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance, revealed that Budget 2026 has allocated a Rs 1.1 lakh crore health budget, marking a 9% increase from the previous year. This substantial investment underscores the government's focus on scaling up healthcare services and infrastructure.
Sameer Sah, partner at Khaitan & Co, noted the broader implications of the budget's policy framework. "The Budget 2026–27 sets a strong policy foundation for India's healthcare sector by aligning regulatory reform with capacity creation. The Biopharma SHAKTI programme, coupled with expansion of clinical trial sites, represents a decisive move towards global quality regulatory timelines. This signals regulatory predictability, something the industry has long sought," he explained.
Sujay Shetty, global health industries advisory leader at PwC India, added that "time-bound regulatory approvals and increase in clinical trials sites will have a huge positive impact on the R&D ecosystem," fostering innovation and research within the country.
Addressing Healthcare Disparities in Tier 2 and Tier 3 Cities
Dharminder Nagar, co-chair of Ficci health and services and MD of Paras Health, pointed out that the budget's measures bring reassurance at a critical time. "Healthcare costs are rising and lifestyle-related illnesses are more common, especially in Tier 2 and Tier 3 cities, where access to specialised care remains limited," he observed. The duty exemptions and infrastructure enhancements are expected to mitigate these disparities by improving the availability and affordability of advanced treatments in underserved regions.
This year's budget follows last year's exemption of 36 life-saving drugs from basic customs duty, indicating a continued focus on reducing the financial burden of healthcare on Indian families. The combined efforts in duty removal, regulatory strengthening, and financial investment aim to create a more robust and accessible healthcare system for all citizens.
