Budget 2026: Cancer Drug Duty Exemptions and Big Push For Healthcare

Budget 2026 brings major relief for patients by exempting basic customs duty on 17 cancer drugs and medicines for seven rare diseases. Nirmala Sitharaman announced NIMHANS 2.0 in North India, expanded trauma care, three new Ayurveda institutes.

Budget 2026 brings major relief for patients and boosts healthcare system

Union Budget 2026-27 has brought major relief for patients across India, especially those suffering from cancer and rare diseases. Presenting her record ninth budget in Parliament, Finance Minister Nirmala Sitharaman announced the exemption of basic customs duty on 17 important drugs and medicines.

The move is expected to make treatment more affordable for thousands of patients who depend on expensive imported medicines. The Finance Minister said the step is aimed at easing the financial burden on families dealing with serious health conditions.

She also announced that seven more rare diseases will be added to the list of conditions eligible for duty-free personal imports of medicines, special drugs, and food used in treatment. This will help patients who often rely on costly medicines not made in India.

Customs duty exemptions to reduce treatment costs

During her budget speech, Sitharaman clearly stated that the exemption is meant to support patients facing high medical expenses. Cancer treatment and care for rare diseases often involve imported medicines that are extremely expensive.

By removing basic customs duty on 17 cancer-related drugs and medicines, the government hopes to reduce prices and improve access. The inclusion of seven additional rare diseases for duty-free personal imports will also help families bring in medicines and special food products without extra tax costs.

The announcement has been widely seen as a patient-friendly move, especially for middle-class and low-income households.

Other consumer items to become cheaper

Along with healthcare relief, the Finance Minister announced changes in customs duties that will benefit consumers in other areas as well. Items such as microwave ovens and aircraft parts will become cheaper due to reduced duties.

The government also reduced the Tax Collected at Source (TCS) rate on overseas tour packages. This move is expected to lower costs for people travelling abroad and support the travel and tourism sector.

These measures show the government’s effort to balance relief for households while supporting industry growth.

NIMHANS 2.0 to strengthen mental health care in North India

A major highlight of Budget 2026 is the announcement of NIMHANS 2.0, a new premier mental health institute to be set up in North India. The Finance Minister pointed out that there is currently no national-level mental health institute in the region.

NIMHANS 2.0 will address this gap and strengthen mental health care, trauma services, education, and research. Sitharaman said the move reflects the government’s strong commitment to mental health support.

Along with the new institute, existing national mental health institutes in Ranchi and Tezpur will be upgraded and developed as regional apex institutions.

Emergency and trauma care to be expanded nationwide

The Finance Minister highlighted that medical emergencies often place sudden and heavy financial pressure on families, especially the poor and vulnerable. To tackle this issue, the government will significantly strengthen emergency and trauma care services.

District hospitals across India will see a 50 per cent increase in capacity through the establishment of new emergency and trauma care centres. This expansion is expected to improve timely medical response and save lives, especially in accident and emergency cases.

Major push for Ayurveda and traditional medicine

Budget 2026 also places strong emphasis on traditional Indian systems of medicine. Sitharaman announced the establishment of three new All India Institutes of Ayurveda to meet rising global demand for Ayurvedic treatment and products.

She noted that Ayurveda has gained wide global acceptance, especially after the COVID-19 pandemic. The growing interest in natural and traditional medicine has increased demand for high-quality Ayurvedic education and healthcare services.

The existing All India Institute of Ayurveda in New Delhi already functions as a centre of excellence for tertiary healthcare in Ayurveda.

Upgrading AYUSH facilities and global traditional medicine centre

In addition to new institutes, the government will upgrade AYUSH pharmacies and drug testing laboratories. The aim is to improve quality standards and train more skilled professionals in traditional medicine.

The Finance Minister also announced the upgradation of the WHO Global Traditional Medicine Centre (GTMC) in Jamnagar. This step will strengthen India’s role as a global leader in traditional medicine research and practice.

Training one lakh allied health professionals

To address shortages in the healthcare workforce, Budget 2026 includes a strong plan to expand allied health education. Existing institutions for allied health professionals will be upgraded, and new ones will be established in both government and private sectors.

The initiative will cover 10 selected disciplines, including optometry, radiology, anaesthesia, operation theatre technology, applied psychology, and behavioural health.

Over the next five years, one lakh allied health professionals will be trained, helping meet growing demand in hospitals, clinics, and diagnostic centres across India.

Building a strong care system for elderly and vulnerable groups

The Finance Minister also announced the development of a strong care system covering geriatrics and allied care services. This is an important step as India’s elderly population continues to grow.

A range of programmes aligned with the National Skills Qualifications Framework (NSQF) will be developed. These programmes will train multi-skilled caregivers who can provide basic care along with allied skills.

Caregivers will be trained in areas such as wellness, yoga, and the use of medical assistive devices. Over the coming year alone, 1.5 lakh caregivers will be trained under this initiative.

Promoting India as a medical tourism hub

Budget 2026 also focuses on positioning India as a global destination for medical tourism. The government will launch a new scheme to support states in setting up five regional medical tourism hubs across the country.

These hubs will be developed in partnership with the private sector and will function as integrated healthcare complexes. They will combine medical services, education, and research facilities in one place.

The hubs will include AYUSH centres, medical value tourism facilitation centres, and infrastructure for diagnostics, post-treatment care, and rehabilitation.

Job creation in healthcare and allied sectors

The medical tourism hubs are expected to create large employment opportunities. Doctors, nurses, allied health professionals, technicians, and caregivers will benefit from the increased demand for services.

By combining healthcare delivery with education and research, the hubs aim to build a strong ecosystem that supports both domestic and international patients.

Higher devolution to states approved

In a key fiscal decision, Sitharaman announced that the government has accepted the 16th Finance Commission’s recommendation to retain the vertical devolution share to states at 41 per cent.

An allocation of Rs 1.4 lakh crore has been made to states for the 2026-27 financial year. This will help states strengthen healthcare, education, and social welfare programmes at the local level.

Healthcare focus reflects people-first approach

The wide range of healthcare-related announcements in Budget 2026 shows a strong people-first approach. From making life-saving medicines cheaper to improving mental health care, emergency services, and workforce training, the budget addresses both immediate needs and long-term system building.

By supporting traditional medicine, modern healthcare, and allied professions together, the government aims to create a balanced and inclusive healthcare ecosystem.

Confederation of Indian Industry VP hails Union Budget 2026

CII Vice President Suchitra Ella said Budget 2026 strongly prioritises the biopharma sector, with ₹10,000 crore support over five years. She highlighted India’s strength in affordable generic medicines, while stressing the need to invest in research, clinical trials, new technologies, and strict domestic and global regulatory compliance.

(With inputs from agencies)