Budget 2026: How Biopharma Shakti and Duty Exemptions Target India’s Cancer Burden

In a significant stride toward healthcare affordability, the Union Budget 2026-27 has introduced key changes to the customs duty structure, aimed at drastically lowering the financial burden on patients battling life-threatening illnesses.

The government’s decision to provide full exemption from basic customs duty on 17 life-saving cancer drugs and expand support for rare diseases marks a transformative moment for oncology and specialty care in India.

Breaking barriers with customs duty relief

For thousands of families, the cost of imported medicines is often the steepest hurdle in the fight against cancer. By removing import duties on 17 critical drugs, the budget directly targets out-of-pocket expenditure.

The newly exempted list includes advanced therapies such as Ribociclib, Abemaciclib, Venetoclax, Ibrutinib and Trastuzumab deruxtecan.

These exemptions are expected to lower market prices significantly, making high-cost treatments more accessible to those without comprehensive insurance coverage.

Furthermore, the government has reduced the tax collected at source on medical remittances from 5% to 2%, providing further financial relief to families who must seek specialised care or therapies from abroad.

Expanded support for rare diseases

The scope of relief extends beyond oncology to the specialised needs of the rare disease community.

The finance minister proposed including seven additional rare diseases under the import duty exemption umbrella for personal medical use.

These conditions include congenital yyperinsulinemic hypoglycemia, cystinosis, and hereditary angioedema, among others.

By allowing the duty-free import of specialised medicines and "food for special medical purposes," the budget eases the extreme financial strain on families who rely on niche therapies that are currently not manufactured within the country.

Dr Ashish Joshi, Director, Co-founder and Medical Oncologist at M|O|C Cancer Care and Research Centre, hailed the move as a vital intervention for the Indian healthcare landscape.

"This Budget brings tangible relief for cancer patients. The exemption of basic customs duty on 17 critical cancer drugs, along with the inclusion of seven additional rare diseases under import duty exemption for personal medical use, will directly reduce treatment costs for many patients who rely on imported therapies," Joshi said.

With India recording over 14 lakh new cancer cases annually and cancer ranked among the top health burdens in the country, this cost relief is an important step toward lowering financial barriers to essential treatment.

Projections suggest that cancer incidence in India continues to rise and could reach around 2 million cases by 2040 highlighting the urgency of expanded care and innovation.

Building a sustainable future

The Budget complements immediate tax relief with long-term investments in domestic self-reliance through the Rs10,000 crore Biopharma Shakti initiative.

This strategy aims to position India as a global manufacturing hub for biologics and biosimilars over the next five years.

To support this ecosystem, the government plans to establish three new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgrade seven existing ones.

Additionally, a network of 1,000 accredited clinical trial sites will be developed to accelerate innovation and reduce the time it takes for new treatments to reach the patient.

Structural upgrades to healthcare infrastructure

Beyond drugs and manufacturing, the Union Budget 2026-27 proposes significant structural upgrades to India's healthcare delivery system.

This includes the establishment of five regional medical hubs in partnership with the private sector to promote medical tourism and integrated care.

To address the shifting disease burden toward non-communicable diseases, the government also plans to set up emergency and trauma care centres in every district hospital and upgrade premier mental health institutions.

Together, these measures signal a comprehensive effort to ensure that quality healthcare is an accessible right rather than a financial privilege.

Published on: Sunday, February 01, 2026, 05:19 PM IST