Healthcare budget crosses ₹1 lakh crore:Govt extends support to rare disease, cancer patients; will diagnosis costs reduce?

The Union Budget 2026 raised India’s healthcare allocation by 10% over the previous year. Finance Minister Nirmala Sitharaman earmarked ₹1,06,530.42 crore for the Ministry of Health and Family Welfare, and announced a proposal to assist states in setting up five regional medical hubs, including institutions such as NIMHANS. Union Finance Minister Nirmala Sitharaman, in her ninth consecutive Union Budget 2026, announced that import duties on 17 cancer-related medicines will be removed. In addition to cancer drugs, medicines used for seven rare diseases will also be made customs duty-free. Union Health Minister JP Nadda said, “Over the past 12 years, the budget for the health sector has increased by 176 per cent. This year’s allocation of over ₹105,000 crore for the health sector is approximately 9% higher than last year’s budget.” In today’s explainer, we understand how the Budget announcement will reduce the financial burden on cancer patients and their families. What did the Finance Minister announce about cancer? Nirmala Sitharaman announced that 17 cancer-related medicines and drugs imported into the country will be made duty-free. This means the government will remove basic customs duty on medicines coming from other countries that are used by critically ill cancer patients. These medicines are mostly used in advanced stages of cancer treatment and are significantly expensive for patients and their families. “India’s disease burden is observed to be shifting towards non-communicable diseases like diabetes, cancer and autoimmune diseases. Biological medicines are key to longevity and quality of life at affordable costs,” the Finance Minister added. How will the announcement lower the cost of cancer treatment? The announcement is likely to reduce the burden of cancer treatment on families who are forced to spend a large portion of their income on cancer medicines and drugs. The move will improve access to healthcare for patients suffering from complex cancer-related conditions. The government’s decision will enable them to purchase imported medicines at lower prices compared to earlier. Patients at advanced stages of the disease are expected to benefit the most from the move. Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman said the duty exemption would directly help bring down the prices of critical cancer drugs. Imported oncology medicines currently attract basic customs duty, which significantly adds to their retail cost. By removing this levy, the government expects the savings to be passed on to patients, easing one of the biggest financial burdens associated with cancer treatment. When asked how this announcement is different from last year’s, Dr Sudhir said that this time the government has increased the number of medicines. It has fully exempted basic customs duty on 17 essential cancer drugs, and the announcement supersedes the previous Budget decision. Will it also reduce charges like hospitalisation and diagnosis? Industry experts have welcomed the announcement, noting that removing customs duties is one of the most effective short-term measures to make medicines more affordable. However, they caution that even if drug prices fall, the overall cost of cancer treatment—including hospitalisation, diagnostics and supportive care—remains high, pointing to the need for a broader healthcare financing strategy. Which medicines will be cheaper? The Finance Minister has not yet announced the list of medicines to be made duty-free. However, medicines generally used at advanced stages of cancer treatment are expected to become cheaper. How many Indians suffer from cancer? Cancer is among the world’s leading causes of death. In 2022, nearly 20 million new cases were recorded globally, while about 9.7 million people lost their lives to the disease. In India, cancer remains a major public health concern, with the burden expected to increase in the coming years. Roughly 100 people per one lakh population are diagnosed with cancer. Data from the Indian Council of Medical Research (ICMR) shows that the number of cancer cases in the country crossed 14 lakh in 2023. Are there any other diseases whose treatment costs will be reduced? In addition to the cancer drug exemptions, the Finance Minister announced that seven more rare diseases will be covered under customs duty relief. Under the proposal, personal imports of drugs, medicines and food for special medical purposes used to treat these rare diseases will be fully exempt from import duties. The move is expected to particularly benefit patients dependent on personalised or niche therapies that are not manufactured in India and are often imported on a named-patient basis. Dr Sudhir says treatments for rare diseases are extremely expensive and are often referred to as orphan drugs because usually only one treatment exists. For example, in neurology, Spinal Muscular Atrophy (SMA) requires treatment that can cost ₹3–4 crore. This is unaffordable for most families in India, but the treatment can save a child’s life. The government has announced a duty exemption for medicines used in seven rare diseases. Making them duty-free can significantly reduce costs and improve affordability. Currently, families often have to rely on fundraising platforms to arrange money for treatment. Even if only a few patients benefit, it can make a life-changing difference for those families. What are the other major announcements linked with healthcare? The Union Budget 2026–27 has laid strong emphasis on strengthening India’s healthcare system, with a series of capacity-building measures. Finance Minister Nirmala Sitharaman announced the setting up of three new All India Institutes of Ayurveda to boost traditional medicine. Over the next five years, one lakh allied health professionals will be added to address workforce shortages, while 1.5 lakh caregivers will be trained nationwide. The government will also support states in establishing five regional medical hubs and set up NIMHANS-2 to expand mental health services. Additionally, district hospitals will see a 50% capacity increase through new emergency and trauma care centres. Graphics: Anas Shakir