Cancer and rare disease drugs go cheaper in Budget 2025

Health Budget

In a major effort to provide relief to patients, particularly those suffering from cancer, rare diseases and other severe chronic diseases, the Union government on Thursday announced that 36 lifesaving drugs and medicines are proposed to be added to the list of medicines fully exempted from basic customs duty.

Presenting the budget, Union finance minister Nirmala Sitharaman also said that the government will facilitate setting up of daycare cancer centres in all district hospitals over the next three years and 200 of these will be established in 2025-26. Finance minister also announced 10,000 seats will be added in medical colleges next year towards the goal of adding 75,000 seats in the next five years.

In her speech, the minister said medical tourism and ‘Heal in India’ will be promoted in partnership with the private sector along with capacity building and easier visa norms. She also said that gig workers will be provided healthcare facilities under PM Jan Aarogya Yojana (PM-JAY) that would benefit nearly 1 crore such workers.

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As a relief on the import of drugs/medicines, 36 lifesaving drugs for treating cancer, rare diseases and chronic diseases have been fully exempted from basic customs duty (BCD). The government had earlier cut customs duty on Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 10 per cent to zero. Further, 37 medicines along with 13 new drugs and medicines under Patient Assistance Programmes have been exempted from BCD, if supplied free to patients.

In the budget, the Centre has allocated Rs 99,858.56 crore for the health ministry, an increase of about 11 percent over the last fiscal’s outlay of Rs 89,974.12 crore. Of the Rs 99,858.56 crore allocated for the health ministry, Rs 95,957.87 crore have been earmarked for the Department of Health and Family Welfare and Rs 3,900.69 crore to the Department of Health Research. The budgetary allocation for the AYUSH ministry has been increased from Rs 3,497.64 crore to Rs 3,992.90 crore, recording a 14.15 per cent increase.

The allocation for AIIMS, New Delhi, has been increased from Rs 5,000 crore to Rs 5,200 crore while ICMR has been earmarked Rs 3125.50 crore as against Rs 2,869.99 crore in the 2024-25 fiscal. Among the centrally sponsored schemes, the allocation for the National Health Missionhas been increased from Rs 36,000.00 crore in 2024-25 to Rs 37,226.92 crore in 2025-26. Moreover, the allocation for Ayushman Bharat Pradhan Mantri Jan ArogyaYojna (AB PM-JAY) has been hiked from Rs 7,605.54 crore to Rs 9,406.00 crore.

For the National Tele Mental Health Programme, the budgetary allocation has been increased from Rs 45 crore to Rs 79.60 crore while the National Digital Health Mission has been earmarked Rs 340.11 crore from Rs 225 crore in the 2024-25 fiscal.