Among the key highlights of the Union Budget 2025, presented on Saturday by Finance Minister Nirmala Sitharaman, is the customs duty exemption announced for 36 lifesaving drugs, and the government’s plans to establish cancer daycare centres at district hospitals.
Cancer daycare centres are facilities that provide essential services, like chemotherapy and blood transfusion, without requiring patients to stay in hospitals (daycare centres discharge them the same day). Setting them up at the level of district hospitals — the government has set a 3-year timeframe to cover all district hospitals, with 200 envisaged over 2025-26 — is expected to widen cancer-care access while easing the burden on big-city facilities.
Apart from this, the government has added 36 lifesaving drugs — for cancer, rare diseases and other severe chronic diseases — to the list of medicines fully exempted from Basic Customs Duty (BCD). Six other medicines have been added to the list of drugs that court a concessional customs duty of 5%.
“Full exemption and concessional duty will also respectively apply on the bulk drugs for manufacture of the above,” the FM said in her speech.
In a post on social media, the Ministry of Health said: “The Budget 2025-26 brings patient-focused measures with relief for those battling cancer, rare diseases, and chronic conditions… Life-saving drugs are now exempt from customs duties, ensuring better access and affordability.”
The Budget 2025-26 brings patient-focused measures with relief for those battling cancer, rare diseases, and chronic conditions.
Life-saving drugs are now exempt from customs duties, ensuring better access and affordability.#Budget2025#HealthForAll pic.twitter.com/LnsKxbRY1z
— Ministry of Health (@MoHFW_INDIA) February 1, 2025
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Cancer Daycare Centres In District Hospitals: Much-Awaited Initiative
Talking about the Budget’s focus on expanding cancer care and strengthening medical infrastructure, D.S. Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre, sought to underscore the impact of the proposed initiatives on accessibility, affordability, and the future of healthcare in India. “The government’s ongoing efforts for comprehensive improvements in healthcare are commendable. The Budget announcement to establish daycare cancer centres in all district hospitals within the next three years is a significant step forward. The addition of 200 centres in 2025-26 itself will make cancer treatment more affordable and accessible, particularly for patients from economically weaker sections,” Negi said.
Urvaksh Bhote, COO of Ruby Hall Clinic, Pune, said “the establishment of daycare cancer centres… will help patients gain access to better treatment while dispersing urban health care facilities”. “The implementation success depends on trained medical staff along with state-of-the-art technology for these newly established centres,” Bhote told ABP Live.
Exemption Of Lifesaving Drugs From Basic Customs Duty
The FM’s announcement vis-a-vis some essential medicines for cancer and rare and chronic diseases is expected to reduce the cost burden for patients and their families, who otherwise suffer immensely on account of mammoth medical bills.
Announcing another measure, the FM referred to patient assistance programmes run by pharmaceutical companies, noting how specified drugs and medicines under such initiatives are fully exempt from BCD provided the medicines are supplied free of cost to patients. Looking to broaden their impact, the government has sought to add 37 more medicines as well as 13 new patient assistance programmes in the exempt list.
Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Limited, described the basic-customs-duty exemption as a “much-needed step to make advanced treatments more affordable”. D.S. Negi agreed. “The reduction of basic customs duty on 36 life-saving drugs to nil, including some cancer drugs, and concessional customs duty on six lifesaving medicines to 5% will significantly decrease cost of treatment for patients,” he said.
Urvaksh Bhote said the “benefits of these policies will properly reach those patients in greatest need depending on how efficiently the implementation works together with proper transparency standards”.
A Big Push To Make India Global Health Leader
Over the last few years, India has gained traction as a hub for affordable and world-class medical care. Promoting medical tourism (‘Heal in India’) was a key focus area of Budget 2025, apart from increasing medical-education seats.
Soi welcomed the government’s emphasis on medical tourism through the ‘Heal in India’ initiative, saying it will further position India as a global healthcare destination.
Bhote added, “Initiatives under the ‘Heal in India’ programme supported by medical-tourism development with the private sector will reinforce India’s position as a global healthcare leader. The international-healthcare market competition power of India depends on investments that build both infrastructure and patient treatment experience.”
Behram Khodaiji, CEO, Ruby Hall Clinic, appreciated the government’s focus on medical tourism, saying that, with relaxed visa norms and private sector collaboration, this initiative has the potential to strengthen India’s position as a global healthcare destination. “To capitalise on this, investment in infrastructure, quality care, and seamless patient experiences must be prioritised, ensuring India remains competitive in the international healthcare market,” Behram Khodaiji added.
On the initiatives to create more medical-education seats, D.S. Negi said the “announcement to add 75,000 medical seats over the next five years, including 10,000 additional seats in FY26, is a crucial step in strengthening medical infrastructure in the country”.
“This significant increase in medical-education opportunities will not only address the growing demand for healthcare professionals but can better serve the needs of the population, especially in underserved areas. This will enhance the current doctor-to-population ratio of 1:1263, and will allow us to meet the WHO standard of 1:1000 by 2030,” he added.
Dr Rakesh Gupta, Chairman, Sarvodaya Healthcare, said “… the forward-looking investment in AI-driven healthcare solutions will not only enhance treatment outcomes in India but also position the country as a global leader in medical tourism”.
Niteen Tulpule, Co-founder & Director, Orthobiologix Biotech Pvt. Ltd, said Budget 2025 is an initiative to strengthen the healthcare sector so that quality care is available to one and all, irrespective of their geography or ability to pay for it. “The fund earmarked for upgrading hospitals, telemedicine services, and formulating AI-based solutions in the healthcare sector will matter in creating a real impact by working on more personalised and efficient service delivery… This massive investment in medical education and skills development will allow the government to train another generation of healthcare workers who will increasingly absorb skilled resources in the domain.”
Soi said “continued investments in healthcare infrastructure, innovation, and accessibility will be key to ensuring quality care for all and achieving a truly ‘Viksit Bharat’ in healthcare”.
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The ‘Hidden’ Benefit
Niteen Tulpule also pointed out how the tax exemption announced on individual incomes of up to Rs 12 lakh could “allow for significant savings”, adding that some portion of this will “hopefully… go towards investment in health insurance premiums”. “This will allow families to acquire better health coverage to ease financial stress due to health emergencies. This holistic approach aims not only to improve healthcare delivery but also to ensure health coverage for all,” he added.
Dr Himani Narula Khanna, Developmental Behavioural Paediatrician and Adolescent Mental Health Expert, and Co-founder of Continua Kids, was all praise for the aforementioned initiatives of the government, but had one grievance. “The Budget could have adopted a more holistic strategy to tackle broader healthcare challenges. Mental health remains a pressing issue in India, and I had hoped for the introduction of specific programmes dedicated to children’s mental well-being,” she said. “Ultimately, our children represent the future of our nation, and prioritising their mental health is imperative.”
The writer is a senior independent journalist.
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