Making cancer treatment more affordable, the Union Budget 2026–27 on Sunday announced exemption of basic customs duty on 17 cancer-related drugs and medicines, offering significant relief to patients and their families. Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman said the move was aimed at reducing the financial burden of life-saving treatment, particularly for vulnerable sections.
The Finance Minister also announced that seven more rare diseases would be added to the list eligible for import duty exemption on drugs, medicines and food meant for special medical purposes when imported for personal use. The decision is expected to ease access to costly therapies for patients suffering from rare and critical conditions.
Alongside the relief on cancer drugs, Sitharaman unveiled a major push to strengthen mental healthcare infrastructure. She announced the setting up of NIMHANS 2.0, a premier mental health institute in North India, noting the absence of a national-level mental health institution in the region. Existing national mental health institutes in Ranchi and Tezpur will also be upgraded as regional apex centres to enhance trauma and psychiatric care services.
To improve emergency response, the Finance Minister said emergency and trauma care facilities would be expanded by 50 per cent in district hospitals across the country. She highlighted that sudden medical emergencies often impose severe financial stress on poor households, making capacity expansion critical.
In another key announcement, Sitharaman said the Centre has accepted the 16th Finance Commission’s recommendation to retain states’ share in central taxes at 41 per cent, with an allocation of Rs 1.4 lakh crore proposed for states in 2026–27.
The Budget also focused on traditional medicine, with the government proposing three new All India Institutes of Ayurveda to meet rising global demand. Upgradation of AYUSH pharmacies, drug testing laboratories and the WHO Global Traditional Medicine Centre in Jamnagar was also announced to strengthen standards and skilled manpower.
