In a significant move to reduce the financial burden on patients battling life-threatening diseases, Finance Minister Nirmala Sitharaman announced a full exemption from basic customs duty on several critical medicines in the Union Budget 2025-26. The exemption, set to take effect from February 2, 2025, aims to lower treatment costs for patients suffering from cancer, rare diseases, and chronic conditions, making essential medications more affordable and accessible through Patient Assistance Programmes (PAPs).
The policy covers a broad range of medicines, particularly those used in the treatment of rare genetic disorders, cancer, and immunological conditions. Among the key beneficiaries are treatments for spinal muscular atrophy (Onasemnogene Abeparvovec) and Gaucher disease (Velaglucerase Alpha)—both extremely expensive drugs manufactured by global pharmaceutical companies such as Novartis, Sanofi, and Takeda. With the exemption in place, these medicines will now become more affordable, especially for patients relying on PAPs.
In oncology, Daratumumab (used for multiple myeloma) and Atezolizumab (used for various cancers) will also be exempt from customs duty. These drugs, produced by Johnson & Johnson and Roche, are priced significantly high in India—Daratumumab costs over ₹7 lakh per dose, while Atezolizumab is priced around ₹1.5 lakh. With the customs duty exemption, prices could drop by ₹10,000 to ₹30,000 per dose, making them more accessible to patients.
The exemption further includes Teclistamab for multiple myeloma, Polatuzumab Vedotin for lymphoma, and cardiovascular therapies such as Alirocumab and Evolocumab, used to manage cholesterol levels. These drugs, manufactured by Amgen, Sanofi, and Merck, will now be more affordable, ensuring better access to essential treatments. Shweta Rai, Managing Director for India and Country Division Head for South Asia at Bayer Pharmaceuticals, emphasized that the expansion of PAPs with new medicines will ensure that more patients can access vital treatments.
The exemption is a significant step for both patients and pharmaceutical companies. Leading global drugmakers such as MSD Pharmaceuticals, Novartis, AstraZeneca, and Pfizer stand to benefit as it opens new opportunities to expand access to their medicines through PAPs. By eliminating customs duties, the government has reduced a key financial barrier, allowing companies to reach a broader patient base in India.
The exemption is expected to reduce treatment costs by 10-20%, depending on the drug. For example, Asciminib, a treatment for chronic myelogenous leukemia produced by Novartis, is one of the high-cost drugs expected to see price reductions. This measure is also expected to drive greater collaboration between pharmaceutical companies, healthcare providers, and government agencies to expand affordable treatment options in India.
Beyond cancer and rare diseases, the exemption extends to immunology and cardiovascular medicines, which are crucial for managing chronic conditions. Drugs like Inclisiran (cholesterol management) by Novartis and Spesolimab (inflammatory diseases) by GSK will also see reduced prices, making long-term treatments more affordable for patients.
The overall impact of this exemption is expected to be substantial, improving both affordability and accessibility of life-saving medicines across India. For many patients, high treatment costs have long been a barrier to essential therapies, particularly in areas with limited healthcare infrastructure. By addressing this financial hurdle, the government is taking a crucial step toward expanding healthcare access to a larger segment of the population.
As the exemption comes into effect, pharmaceutical companies are likely to intensify their efforts to ensure that patients benefit from these cost reductions. Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, welcomed the move, stating: “Exemptions and concessional duty on essential medicines will improve drug access to critical treatments nationwide.”
This policy marks a major shift in making life-saving treatments more accessible while paving the way for greater collaboration between the government and pharmaceutical industry to enhance healthcare affordability in India.