Budget 2024: Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2024-25 in Parliament on Tuesday, announced that three cancer treatment medicines will be exempted from basic customs duty.
The health minister also outlined modifications to the Basic Customs Duty (BCD) on X-ray tubes and flat panel detectors used in medical X-ray machines as part of the Phased Manufacturing Program to "enhance domestic production capacity."
Addressing the Budget speech here, FM Sitharaman said, “To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties. I also propose changes in the BCD on x-ray tubes & flat panel detectors for use in medical x-ray machines…”
These initiatives are part of the government's comprehensive strategy to improve healthcare affordability and accessibility, while also promoting local manufacturing and innovation in the medical sector.
Industry players welcomed the government's robust measures to fortify India's healthcare infrastructure and accelerate growth in the pharmaceutical sector, saying it reflects a significant stride towards sustainable development and innovation in healthcare.
Dr Harsh Mahajan, founder and chairman of Mahajan Imaging & Labs and Chairman of the FICCI Health Services Committee, said this is a budget for continuity and inclusive growth.
“Exemption of three life saving medicines for cancer treatment is a welcome step. Exemption of customs duty on components of Xray tubes and digital detectors, will lead to spurring of indigenous manufacturing of digital Xray machines in India,” he told LiveMint.
Dr Kunjal Patel, molecular oncopathologist at Neuberg Centre for Genomic Centre, said the move aims to make life-saving medications more accessible and affordable for patients battling cancer, reflecting the government's commitment to improving public health.
“The exemption is expected to enhance the overall quality of healthcare and support the fight against cancer across the nation," he said.
“The reduction in GST and Import Duty on APIs will help in stabilising the Pharma prices in the country, boost the domestic manufacturing and make the medicines available for the common people at lower prices. This is in alignment with Government's mandate of providing accessible health for all,” said Dr. Pradeep Multani, Former President, PHDCCI and Chairman, Multani Pharmaceuticals Ltd.
The decision to exempt cancer medicines from basic customs duty is a crucial step in addressing the rising challenge of chronic diseases, particularly cancer, which is emerging as a significant public health problem in India, according to Neuberg Sehgal Path Lab Director Dr. Kunal Sehgal.
“The government aims to make life-saving treatments more affordable and accessible to patients. This move reflects a strong commitment to public health and aims to alleviate the financial burden on families affected by cancer,” he added.
With cancer responsible for 71% of deaths in the 30 to 69 age group and 15% of cancer patients being children and adolescents in India, timely diagnosis and personalized care are paramount, said Dheeraj Jain, chairperson, Redcliffe Labs.
“The exemption of custom duty on cancer medicines will enhance their accessibility and affordability for many. By combining early diagnosis with immediate access to treatment for advanced-stage patients, we can significantly improve the overall healthcare landscape across the nation,” he added.
The Budget 2024 is a game-changer for the medtech industry, with the government's decision to reduce customs duties on X-ray tubes and flat panel detectors, components not currently manufactured in India, said Gaurav Agarwal, Co-Chair, Medical Devices Committee, PHDCCI & MD, Innvolution Healthcare Pvt Ltd.
“This strategic move will lower costs for healthcare providers, making advanced medical imaging technologies more accessible and affordable. Additionally, the budget's focus on skill development and R&D funding will help cultivate a highly skilled workforce and foster innovation, positioning India as a global leader in manufacturing of novel technologies,” he said.
