In a significant move to make healthcare more affordable, Finance Minister Nirmala Sitharaman announced in the Union Budget 2025 that 36 life-saving drugs, including those for cancer and rare diseases, will be fully exempt from basic customs duty. This measure is designed to ease the financial burden on patients requiring critical medications while improving access to essential treatments. Key announcements in healthcare include a full customs duty exemption for these 36 drugs, reducing treatment costs for conditions like cancer, rare genetic disorders, and chronic illnesses. Additionally, six other medicines will benefit from a concessional 5% duty rate, further lowering healthcare expenses. The budget also expands patient assistance programmes, with exemptions on medicines distributed under 13 new initiatives to ensure financial relief reaches those in need.
To address the shortage of healthcare professionals, the budget allocates funding for 10,000 new medical college seats in 2025, with plans to add 75,000 seats over the next five years. Furthermore, the government will establish 200 new daycare cancer centres in district hospitals by 2025-26, significantly boosting cancer care infrastructure. In a move to support gig workers, Sitharaman confirmed their inclusion in the PM Jan Aarogya Yojana (PM-JAY), providing them with medical coverage.
Experts believe these measures will have a long-term impact on reducing out-of-pocket healthcare expenses, particularly for middle-class families and those facing high treatment costs for life-threatening diseases. Behram Khodaiji, CEO of Ruby Hall Clinic, described the customs duty exemption on essential drugs as a progressive step that will alleviate financial stress for patients battling cancer and rare diseases. Industry leaders have also called for continued reforms to make advanced treatments, such as targeted therapies and robotic surgeries, more affordable.
With India registering 12 lakh new cancer cases in 2019 and this number rising to 14.6 lakh by 2022, according to The Lancet, reducing treatment costs through tax and duty exemptions is crucial to improving patient outcomes. The Budget 2025 prioritises healthcare affordability and accessibility, aiming to make life-saving treatments more financially viable for millions. By expanding medical education, enhancing cancer treatment infrastructure, and extending healthcare benefits to gig workers, the budget lays the foundation for a stronger, more inclusive healthcare system in India.
