In one of the biggest announcements in healthcare in several years, the Budget has made a number of life-saving drugs a lot more affordable and accessible. The finance minister has fully exempted 36 cancer and rare diseases therapies from basic customs duty, and she has reduced the import duty to 5% on six critical medicines.
“Additionally, 13 patient assistance programmes (PAP) have been included under this exemption framework, which will further ease the financial burden on patients requiring critical therapies,” Anil Matai, director general of OPPI (Organisation of Pharmaceutical Producers of India), an industry body representing MNCs, said.Under PAP, MNCs provide drugs at a discounted rate to patients under several schemes.
Typically, most high-priced therapies used in cancer and other critical ailments are imported into the country by MNCs, and additional import duties further escalate their prices. As a result, these life-saving treatments often remain out of reach for the poor and even the middle class, pushing them to indebtedness. At present, finished formulations are levied a customs duty between 5% and 10%, while bulk drugs (raw materials) around 10%.
In India, there has been an alarming rise in cancer, with 15 lakh people diagnosed with the ailment and many more undiagnosed cases.
Sudarshan Jain, secretary general of Indian Pharmaceutical Alliance, said: “Exemptions and concessional duty on essential medicines will improve drug access to critical treatments nationwide. The establishment of cancer centres in district hospitals and the expansion of medical education will strengthen the healthcare workforce and infrastructure. Research fellowships and focused funding will propel innovation in Indian pharma. The thrust on medical tourism, ‘Heal in India’, increased FDI limit in the insurance sector, and nutritional programmes underscore a holistic approach towards public health, further positioning India as a global healthcare hub.”
Meanwhile, the domestic industry also renewed its long-standing request for a GST waiver on cancer and chronic therapies. “While the customs duty waiver is welcome, I hope this extends to GST relief for indigenously available medicines for cancer, rare diseases, and chronic conditions like autoimmune diseases to truly benefit the patients,” Kiran Mazumdar-Shaw, chairperson, Biocon Group, said.
Satish Reddy, chairman, Dr Reddy’s Laboratories, said the budget measures including cancer day care centres, medical education, custom duty exemptions for life-saving drugs, and encouragement to medical tourism and ‘Heal in India’ will boost the country’s healthcare ecosystem. ‘Heal in India’ came in for appreciation from across the spectrum. The initiative will be promoted in partnership with the private sector along with capacity building and easier visa norms.
Abhay Soi, chairman and MD of Max Healthcare Institute, also said the ‘Heal in India’ medical tourism initiative will further position India as a global healthcare destination. Preetha Reddy, executive vice chairperson, Apollo Hospitals, said the ‘Heal in India’ initiative reinforces India’s leadership in global healthcare.
The Rs 20,000 crore fund earmarked for private sector-driven R&D is also expected to boost innovation in healthcare. Dr Krishna Ella, executive chairman, Bharat Biotech, said he was pleased to see the strong focus on research, development, and innovation. “This investment will play a crucial role in driving significant breakthroughs and advancing progress,” he said.
“The relief on lifesaving drugs, particularly for cancer and rare diseases, is a crucial step towards improving patient care and making treatments more affordable,” he said.
