Budget 2026: Major Relief for Patients as 17 Cancer Drugs Get Customs Duty Exemption

In a significant move to make critical healthcare more affordable, Finance Minister Nirmala Sitharaman, in the Union Budget 2026-27, announced a complete exemption of basic customs duty on 17 essential cancer drugs. This targeted relief measure is expected to substantially reduce treatment costs for thousands of patients across India who depend on expensive imported medicines. The budget also expanded support for individuals with rare diseases and lowered the general duty on personal imports, reinforcing the government's focus on accessible healthcare.

Complete Exemption on Critical Cancer Medications

The cornerstone of the healthcare announcements in Budget 2026 is the full waiver of basic customs duty on a specific list of 17 cancer drugs and medicines. These medications are often high-cost, forming a significant portion of a patient's overall treatment expenditure. By eliminating the import duty, the government aims to directly lower the market price of these therapies, easing the immense financial strain on patients and their families. This step is crucial for improving access to advanced cancer treatments that are not yet manufactured in India.

Expanding Support for Rare Diseases

Beyond cancer care, the budget extended its relief measures to patients with rare diseases. The Finance Minister announced that seven additional rare diseases will be added to the list eligible for customs duty exemption on the personal import of drugs, medicines, and Food for Special Medical Purposes (FSMP). This expansion of the exemption list acknowledges the prohibitive cost of treating such conditions, many of which require lifelong medical support with imported therapies. This move is expected to provide substantial financial relief to families managing these complex and often life-threatening ailments.

Lowering the Cost of Personal Imports

To provide broader relief, the government also rationalised the duty structure for goods imported for personal use. The Finance Minister proposed a reduction in the tariff rate on all dutiable goods imported for personal use from 20% to 10%. This general reduction benefits patients who need to import specific medicines or medical equipment that may not be covered under the targeted exemptions for cancer or rare diseases. It simplifies the import process and makes a wider range of medical products more affordable for individuals.

Financial Impact: Making Treatment More Affordable

The high cost of treatment is a primary barrier to healthcare in India, often forcing patients to delay or discontinue essential therapies. The customs duty cuts announced in Budget 2026 directly address this challenge. By making life-saving drugs cheaper, the government hopes to ensure that more patients can start and complete their treatment regimens. This not only improves health outcomes but also reduces the risk of families falling into debt or poverty due to medical expenses.

Key Duty Reductions in Union Budget 2026

The following table summarises the key customs duty changes for healthcare announced in the budget:

Measure	Old Rate	New Rate	Impacted Group
17 Specific Cancer Drugs	Varies	0% (Fully Exempt)	Cancer Patients
Drugs for 7 New Rare Diseases	Varies	0% (Exempt)	Rare Disease Patients
Personal Imports (General)	20%	10%	General Public, Patients

A Broader Push for Accessible Healthcare

These duty rationalisations are part of a larger, multi-pronged strategy to strengthen India's healthcare sector. The budget also launched the 'Biopharma Shakti' initiative with a significant outlay of ₹10,000 crore over five years. This program is designed to accelerate research, innovation, and manufacturing in the biotechnology and pharmaceutical sectors, fostering long-term self-reliance.

Furthermore, the budget addresses the need for a skilled workforce by announcing a plan to train one lakh Allied Health Professionals over the next five years. This initiative will create a robust support system for doctors and hospitals, improving the quality and delivery of care across the country.

Continued Government Focus on Health

The announcements in Budget 2026 build upon the government's consistent focus on the health sector. In the previous budget for 2025, the government had already increased the health sector allocation and taken steps to waive duties on other life-saving drugs. The continued emphasis on reducing the cost of critical medicines indicates a clear policy direction towards making healthcare more inclusive and affordable for all citizens.

Conclusion: A Significant Step Towards Affordable Care

The customs duty exemptions for cancer and rare disease drugs in Union Budget 2026 represent a compassionate and impactful policy decision. By directly targeting the high cost of imported medicines, the government has provided tangible relief to some of the most vulnerable patients. These measures, combined with a broader focus on biopharmaceutical innovation and workforce development, signal a strong commitment to building a resilient and accessible healthcare system for the future.