In an effort to soften the impact of high drug prices on patients with cancer, and specific rare diseases - Budget 2026 exempted from tax, certain drugs used to treat them.

The proposal exempted 17 drugs from basic customs duty (from 5 / 10 per cent to nil). Another seven rare diseases were exempt from import duties on personal imports of drugs, medicines and Food for Special Medical Purposes (FSMP) used in treatment, the Budget said.

While pharma industry experts said the move signalled the Centre’s intent to get innovative medicines to patients, treatment activists are calling for publication of data on previous BCD exemptions and whether it was passed on to patients.

The exemption will make medicines more accessible to patients, because without it, prices would have spiralled higher, Hitesh Sharma, Partner and National Health Science Tax Leader – EY India, told businessline. The medicines were from multinational drugmakers including Novartis, AstraZeneca, Eli Lilly, among others.  

Anil Matai, Director, Director General - Organisation of Pharmaceutical Producers of India (OPPI), said, the “patient-first” intervention reduced the cost burden of advanced, often life-saving therapies for families. “By easing the financial barriers to accessing complex treatments, the Budget meaningfully advances equitable access to care,” as non-communicable diseases such as cancer, autoimmune disorders, and diabetes rise. OPPI represents largely multinational companies.

Minimal benefits?

The Working Group on Access to Medicines and Treatment pointed out, this was the third consecutive budget announcing BCD exemption. However, they added, it “will deliver minimal benefit to patients”.

The maximum retail prices of these medicines remain unaffordable for most Indians even after the BCD exemption, the Group said, adding that only a fraction of the population with access to huge finance would be able to afford it. “More troubling is the fact that there is no evidence that companies reduced prices in response to the (previous) BCD waiver,” the Group said, alleging that companies “are not passing the benefit of lowering of price to the patients and hence, the waiver is benefitting the foreign multi-nationals, not the Indian patients.”

The Group urged the Centre to publish the MRP of all medicines benefitting from BCD exemptions, along with transparent data on the actual price reduction passed on to the patients after exemptions are granted.

17 medicines and 7 rare diseases

Ribociclib (Novartis)

Abemaciclib (eli lilly)

Talycabtagene autoleucel (CAR-T)

Tremelimumab (AstraZeneca)

Venetoclax (AbbVie)

Ceritinib (Novartis)

Brigatinib (Takeda)

Darolutamide (Bayer)

Toripalimab (Shanghai Junshi Biosciences / India partner Dr Reddy’s )

Serplulimab ( Shanghai Henlius Biotech / Intas Pharmaceuticals – India partner)

Tislelizumab (BeOne Medicines (formerly BeiGene) / Glenmark Pharma (India partner)

Inotuzumab ozogamicin (Pfizer)

Ponatinib (Takeda)

Ibrutinib (AbbVie / J&J)

Dabrafenib (Novartis)

Trametinib (Novartis)

Ipilimumab (Bristol Myers Squibb)

Rare diseases

Congenital Hyperinsulinemic Hypoglycemia (CHI)

Familial Homozygous Hypercholestrolemia

Alpha Mannosidosis

Primary Hyperoxaluria

Cystinosis

Hereditary Angioedema

Primary Immune Deficiency Disorders

Published on February 1, 2026