Union Budget 2025-26: Relief for Patients with Exemption on Life-Saving Drugs and Medicines

New Delhi: In a significant move to support healthcare access and affordability, the Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, announced key proposals in the Union Budget 2025-26 regarding customs duty exemptions on life-saving drugs and medicines.

During her budget speech in Parliament today, Sitharaman stated that the government aims to ease the financial burden on patients, particularly those suffering from cancer, rare diseases, and chronic illnesses, by proposing the inclusion of 36 life-saving medicines in the list of those fully exempted from Basic Customs Duty (BCD). This move is expected to significantly lower the cost of these essential medicines and make them more accessible to a broader population.

The Budget also proposed adding 6 additional life-saving medicines to the list, which will attract a concessional customs duty of 5%. These medicines are crucial for treating a variety of severe health conditions, and the reduction in duty aims to alleviate the financial strain on both patients and healthcare providers.

In line with the government’s commitment to affordable healthcare, Sitharaman also revealed that bulk drugs required for the manufacture of these life-saving medicines will benefit from the same full exemption and concessional duty, ensuring the seamless availability of raw materials for pharmaceutical production.

Further, the Finance Minister acknowledged the Patient Assistance Programs run by pharmaceutical companies that provide free medicines to patients. In a positive development for these initiatives, the Budget proposed that medicines and drugs supplied free of cost to patients under such programs will continue to be fully exempt from BCD. The Budget also plans to add 37 more medicines to this list, alongside the inclusion of 13 new patient assistance programs to further ease the burden on patients from low-income backgrounds.

Addressing the Needs of Vulnerable Populations

This year’s Budget demonstrates the government’s strong commitment to addressing the healthcare needs of vulnerable populations, particularly in the fight against cancer and other life-threatening diseases. With this initiative, the government aims to reduce out-of-pocket expenses for patients, enabling them to access life-saving treatments without facing prohibitive costs.

The Union Budget 2025-26 highlights the government’s focus on improving access to medicines for those in dire need while ensuring that the pharmaceutical sector continues to thrive by reducing the cost burden on the domestic market. By providing relief in customs duties on these critical drugs and medicines, the government aims to make health and well-being more accessible and equitable for all.