Union Budget 2026: Govt waives customs duty on cancer and rare disease drugs — key health sector updates

Finance minister Nirmala Sitharaman, presenting her ninth consecutive Union Budget on Sunday, announced several major healthcare measures, including customs duty waivers on 17 cancer drugs and duty exemptions for medicines for seven rare diseases.

The finance minister highlighted India’s economic stability, fiscal discipline, and sustained growth under the Narendra Modi-led NDA government since 2014, pledging to continue the “reform express” to maintain momentum.

‘Biopharma Shakti’

The Budget launched the Biopharma Shakti initiative with an outlay of Rs 10,000 crore over five years. The program will accelerate research, manufacturing, and innovation in biotechnology and pharmaceuticals.

Support for cancer patients

To ease medical costs, the government waived basic customs duty on 17 cancer drugs and extended import duty exemptions for seven additional rare diseases for personally imported medicines, drugs, and specialised medical food.

Expanding healthcare workforce

The government plans to upgrade existing institutions for allied health professionals and set up new ones across public and private sectors. Over the next five years, 1 lakh allied health professionals will be trained across disciplines like optometry, radiology, anaesthesia, and applied psychology.

To strengthen elder care and allied services, 1.5 lakh multi-skilled caregivers will be trained through programs aligned with the National Skills Qualifications Framework (NSQF), combining core care with wellness, yoga, and operation of medical assistive devices.

Medical tourism and regional healthcare hubs

To promote India as a hub for medical tourism, the government will support states in establishing five regional healthcare hubs in partnership with the private sector.

These integrated complexes will include AYUSH centres, medical value tourism facilitation centres, diagnostic and rehabilitation infrastructure, and research and educational facilities, generating significant employment for doctors, allied health professionals, and caregivers.

Strengthening traditional medicine

The Budget proposed the establishment of three new All India Institutes of Ayurveda, upgrading AYUSH pharmacies and drug testing labs, and enhancing the WHO Global Traditional Medicine Centre in Jamnagar.

These initiatives aim to meet global demand for traditional medicine and increase the availability of skilled professionals in the sector.

Mental health and hospital infrastructure

A focus on mental health includes the creation of NIMHANS 2.0, a premier mental health institute in North India. The capacity of district hospitals will also be increased by 50% through new emergency and trauma care centres, improving access to critical care.