Union Finance Minister Nirmala Sitharaman’s announcement of customs duty exemptions for three cancer drugs in the 2024-25 Union Budget has been met with widespread approval from the medical community. This decision, revealed during the Lok Sabha session, is expected to significantly benefit patients undergoing long-term cancer treatment by reducing the cost of these essential medications.
Dr. Shyam Aggarwal, Chairman of Medical Oncology at Sir Ganga Ram Hospital, welcomed the move, stating, “All imported life-saving drugs are costly, and the same goes for cancer drugs. Therefore, customs duty exemption is a welcome step. Patients mostly require long-term treatment, so any measure to bring down costs is more than welcome.”
The exempted drugs are Trastuzumab Deruxtecan, Osimertinib, and Durvalumab—each playing a crucial role in targeted cancer therapy. Trastuzumab Deruxtecan is used for HER2-positive breast cancer and is also being explored for other cancers, including gastric cancer. Osimertinib targets specific mutations in non-small cell lung cancer (NSCLC) and is effective against cancers resistant to earlier treatments. Durvalumab, an immunotherapy drug, helps the immune system combat cancer cells in NSCLC and bladder cancer.
Experts predict that the overall cost of these drugs could decrease by up to 20% due to the customs duty exemption. Mandeep Singh Malhotra, Director of Surgical Oncology at CK Birla Hospital, explained, “The exact reduction in cost will depend on current customs duty rates and associated costs such as import taxes and logistics. However, exemption from basic customs duty could potentially reduce the price by 10-20%, making these treatments more affordable.”
In addition to the cancer drugs, the Finance Minister announced customs duty exemptions on components for X-ray tubes and digital detectors. Rajiv Nath, Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD), noted, “Since there are no domestic manufacturers for these critical components, the government’s relief is appreciable.”
Ashutosh Raghuvanshi, Managing Director and CEO of Fortis Healthcare Limited, added, “Changes in basic customs duty for X-ray tubes and flat-panel detectors will significantly benefit domestic OEM manufacturers by reducing costs, encouraging local sourcing, and enhancing competitiveness. This aligns with the ‘Atmanirbhar Bharat’ initiative and supports local manufacturing, technological investment, and job creation.”
While the health sector saw a substantial allocation of ₹90,658.63 crore, reflecting a 12.59% increase from the previous year, and the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) received ₹3,200 crore, some experts feel that health could have been given more prominence in the budget.
Aashish Chaudhry, Managing Director of Aakash HealthCare, remarked, “Health was not one of the nine main priorities. The budget could have addressed broader healthcare challenges with a more comprehensive plan. By not prioritizing health among the top nine, it misses the opportunity to fully address the sector’s wider issues and potential.”
Overall, the budget’s focus on reducing drug costs and supporting domestic medical device manufacturing marks a positive step forward, though the sector’s broader needs remain a topic for ongoing discussion.