In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman declared that 36 life-saving medications will be completely exempt from customs duties, a major step to lessen the financial burden on patients.
This program is a component of a larger plan to lower the cost of necessary medical care, especially for cancer patients who have long pushed for less expensive alternatives.
A projected 5% concessional duty on these medications is part of the announcement, which was made on February 1, 2025, along with a full exemption from customs duties for their production.
Millions of people in India are anticipated to have easier access to essential pharmaceuticals as a result.
The government reduced the Goods and Services Tax (GST) on three important cancer medications in February 2024: Durvalumab, Osimertinib, and Trastuzumab Deruxtecan. According to health experts, this change should also apply to targeted therapy medications and sophisticated cancer treatment equipment, such as robotics and radiotherapy machines, the majority of which carry customs taxes of about 37%.
The medical community has been outspoken about the need for lower cancer treatment costs, and our most recent budget complies with those calls, giving families much-needed respite from the high expenditures of cancer care.
The 2025 Budget underscores the government’s commitment to strengthening healthcare infrastructure and accessibility. At VarcoLegCare, we welcome the increased allocation towards digital health initiatives, preventive care, and medical R&D. These measures will enhance patient outcomes and drive innovation in the sector. The emphasis on public-private partnerships aligns with our mission to deliver advanced, patient-centric solutions. We remain dedicated to leveraging these opportunities to expand quality healthcare access, particularly in underserved areas. This budget is a step forward in building a resilient, technology-driven healthcare ecosystem for a healthier future.
– Dr. Apurba Ganguly, Founder, Chairman & Chief Scientist Officer – Nano Phyto Care & bioGAN
The 2025 Budget highlights a progressive approach to healthcare and insurance technology, reinforcing the need for digital transformation in the sector. At HealSpan, we applaud the government’s focus on expanding health coverage, AI-driven diagnostics, and interoperability of medical records. The push for insurtech innovation and greater accessibility to affordable policies will empower millions. Strengthening data security frameworks will also ensure patient trust in digital healthcare solutions. This budget paves the way for a more inclusive, tech-enabled ecosystem, and we remain committed to leveraging these advancements to enhance seamless, efficient, and personalized healthcare experiences for all.
– Abhi Sinha, Co-Founder, HealSpan
“The Union Budget 2025-26 takes promising steps to strengthen India’s startup ecosystem with a dedicated Startup Fund of Funds and enhanced credit guarantees for SMEs, improving capital access and fostering innovation. The National Manufacturing Mission creates new opportunities for startups aligned with ‘Make in India.’ Simplified regulations and reduced income tax will ease compliance burdens, allowing founders to focus on scaling their businesses while managing salary costs more effectively. However, broader tax incentives for startup investors could have further boosted capital inflows. We look forward to policy refinements that drive sustained entrepreneurial growth.”
— Sushanto Mitra, CEO, Lead Angels
“The Union Budget 2025-26 is a boost for startup founders, strengthening ease of doing business and improving access to capital. The dedicated Startup Fund of Funds and enhanced SME credit guarantees will help founders secure much-needed funding, while streamlined regulations reduce compliance burdens. The focus on manufacturing through the National Manufacturing Mission also creates new opportunities for startups aligned with ‘Make in India.’ With these measures, founders can spend less time navigating red tape and more time building and scaling their ventures. This is a step in the right direction for India’s entrepreneurial ecosystem.”
— Hanuman Tripathi, Partner – Fintech, Lead Angels
“A critical step in lowering treatment expenses for individuals battling cancer, uncommon disorders, and chronic illnesses is the removal of basic customs duty on 36 life-saving medications and concessional rates on six more. Furthermore, removing the customs charge on medications given through patient assistance programs is a positive step that will provide access to necessary medications for people who are struggling financially, according to Behram Khodaiji, CEO of Ruby Hall Clinic.
Sitharaman emphasized that the government’s commitment to enhancing healthcare accessibility and affordability is reflected in this decision. Considering the growing number of cancer patients in India, the exemption is very important. Since many patients need ongoing care, easing the financial burden is essential to enhancing health results.
According to Anurag Yadav, CEO of Gleneagles Healthcare India, “the addition of 36 pharmaceuticals to the customs-free list is a great gesture, but further efforts to address the overall price of prescription prescriptions are also essential.”
When the finance minister presented the Union Budget for 2025–2026, she also mentioned plans to establish cancer care centers in every Indian district.
– Raja Aditya
