In a bid to ease the financial burden on cancer patients, Finance Minister Nirmala Sitharaman announced key reforms in the Union Budget 2025-26, presented in Parliament on Saturday. The government aims to make cancer treatment more affordable by reducing the cost of essential drugs and strengthening cancer care infrastructure across the country.
"To provide relief to patients, particularly those suffering from cancer, rare diseases, and other severe chronic conditions, 36 life-saving drugs and medicines are proposed to be added to the list of medicines fully exempted from basic customs duty (BCD)," Sitharaman stated. She further said that six additional life-saving medicines would attract a concessional customs duty of 5%.
To further support pharmaceutical manufacturing, the finance minister announced full exemptions and concessional duties on bulk drugs used in the production of these medicines. "Specified drugs and medicines under patient assistance programmes run by pharmaceutical companies are fully exempted from BCD, provided the medicines are supplied free of cost to the patients," she said. Additionally, thirty-seven more medicines and 30 new patient assistance programmes are proposed to be included under this exemption.
The finance minister also announced the establishment of daycare cancer centres in all district hospitals over the next three years. "The government will facilitate the setting up of daycare cancer centres in all district hospitals in the next three years. Two hundred centres will be established in 2025-26 itself," she said. These measures seek to address the growing cost of cancer treatment in India. A study published in The Lancet Regional Health – Southeast Asia in July 2023, titled Financial Toxicity of Cancer Treatment in India: Towards Closing the Gap, conducted by researchers from the Indian Council of Medical Research (ICMR) and other institutions, estimated that the total annual direct out-of-pocket expenditure (OOPE) on cancer treatment was ₹3.3 lakh per patient. The study, which surveyed 12,148 cancer patients across seven cancer centres in India, found that diagnostics accounted for 36.4% of outpatient treatment costs, while medicines constituted 45% of hospitalisation expenses.
The financial strain is compounded by India's rising cancer burden. According to a study titled Cancer Incidence Estimates for 2022 and Projection for 2025, published in the Indian Journal of Medical Research in December 2022, India recorded approximately 1.46 million new cancer cases in 2022, with a crude incidence rate of 100.4 per 100,000 individuals. The study noted that lung cancer was the most prevalent among males, while breast cancer had the highest incidence among females.
Industry experts have welcomed the government’s move to decentralise cancer treatment by enabling daycare centres to administer first-line chemotherapy. They believe this step will significantly improve access to cancer care, particularly for underprivileged patients, while reducing the burden on specialised cancer hospitals.
"Cancer statistics indicate that head and neck cancers (including oral and throat cancer), breast cancer, and gynaecological cancers account for nearly 70% of the cancer burden in India. For most of these cases, first-line chemotherapy can be effectively administered at well-equipped daycare centres with proper training and support," said Dr Mandeep Singh Malhotra, Director, Surgical Oncology, CK Birla Hospital, Delhi.
"This approach will help manage a substantial portion of the country’s cancer load. However, patients with haematological malignancies, paediatric cancers, or recurrent cancers require specialised facilities with advanced backup support. These cases should continue to be treated in dedicated cancer care centres. Overall, enabling daycare centres to administer first-line chemotherapy is a major step forward in expanding accessible cancer care. I once again commend the government for this progressive initiative," he added.
The expansion of daycare centres is also expected to create a demand for trained oncology professionals, experts have said. Dr Shyam Agarwal, Chairman, Medical Oncology, Sir Ganga Ram Hospital and Vice President, Indian Society of Medical and Paediatric Oncology, highlighted the growing need for skilled specialists.
"Every year, nearly three hundred newly trained medical oncologists (DNB and DM) graduate from government and private medical colleges. These centres will provide facilities for cancer chemotherapy, immunotherapy, and daycare operations for various types of cancer. In addition, trained surgical and radiation oncology staff will be required for these centres. These centres will offer accessible and affordable cancer care to underprivileged patients," he said.