The highly anticipated Union Budget 2024 was announced today by Finance Minister Nirmala Sitharaman, marking her seventh consecutive Budget presentation. This is the first Budget of the Modi government following its re-election for the third consecutive term.
In her speech, Sitharaman proposed schemes in the healthcare sector to provide relief to cancer patients, exempting three cancer treatment medicines viz. Trastuzumab deruxtecan, Osimertinib, and Durvalumab from Customs Duties. Furthermore, the Basic Customs Duty (BCD) on x-ray tubes and flat panel detectors for use in medical x-ray machines has been decreased to synchronise them with domestic capacity addition.
According to the budget documents, the scheme-wise allocation for the National Health Mission in 2024-25 is set at Rs. 38,183 crore, reflecting a 12.7 per cent increase compared to the previous year’s Revised Estimate (RE) to the current year’s Budget Estimate (BE) for 2024-25.
Previously, the Union Health Ministry had been allocated Rs 90,171 crore in the interim Budget for 2024-2025, a significant increase from the ₹79,221 crore allotted in 2023–24.
Healthcare Industry experts share their opinions on the budget:
D.S. Negi, CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC):
“We welcome the government’s announcement in the Budget 2024-25 to fully exempt three additional cancer medicines from custom duties. This is a significant step towards making essential cancer treatments more accessible and affordable for patients across India. The high cost of cancer medications has been a major barrier for many patients, and this exemption will undoubtedly provide much-needed financial relief to those battling the disease.
Furthermore, the proposed reduction in the basic custom duty (BCD) on x-ray tubes and flat panel detectors for use in medical x-ray machines are commendable. By aligning these changes with domestic capacity addition, the government is not only supporting the growth of local manufacturing but also ensuring that advanced medical technology is available to improve diagnostic accuracy and treatment outcomes for cancer patients. We applaud the government for these decisive measures and are confident that they will bring us closer to a future where every cancer patient has access to the best possible care.”
Dr P N Arora, Chairman of Yashoda Super Speciality Hospitals Kaushambi:
“The first budget of Modi 3.0 presented by FM Nirmala Sitharaman has outlined nine priority areas paving the way for ‘Viksit Bharat’. The budget is a big boost to farmers, women and youth. While promoting inclusive growth, the focus given to employment, manufacturing, innovation, R&D, and next-gen reforms amongst others will augur well for the healthcare and medical industries. Cancer poses a significant health burden in India and the announcement to exempt three more essential medicines for cancer treatment comes as a big relief for patients. We welcome this initiative to enhance and support the healthcare sector. Besides, giving special attention to encouraging domestic manufacturing aligned with the Make-in-India initiative, FM proposed a revision in the Basic Customs Duty (BCD) on medical X-ray equipment, including X-ray tubes and flat panel detectors. While accessibility and affordability are critical aspects of the healthcare industry, these proposed initiatives have come at the right time to strengthen the government’s comprehensive healthcare strategy further.”
Behram Khodaiji, CEO of Ruby Hall Clinic:
“ We are delighted to see the government’s proactive measures in the Union Budget 2024 aimed at providing substantial relief to cancer patients. The changes in Basic Customs Duty (BCD) for X-ray tubes and flat panel detectors used in X-ray machines under the phased manufacturing program are highly appreciated. Synchronising these changes with domestic capacity addition will bolster our diagnostic capabilities and promote the growth of the domestic medical device industry. These measures reflect a comprehensive strategy to enhance India’s healthcare infrastructure and patient care.The exemption of three additional cancer treatment medicines from customs duty is a welcome step towards making vital treatments more accessible and affordable for cancer patients.”
Hitesh Sharma, Partner and Life Sciences Leader – Tax, EY India :
“The budget has maintained a neutral stance towards the Pharmaceutical and Healthcare sector. Noteworthy advancements include a commitment to enhance R&D, with an emphasis on basic research and the development of prototypes – reemphasis of commitment made in interim budget. Additionally, the budget proposes the elimination of customs duties on select cancer medications and a reduction of Basic Customs Duty (BCD) on specific X-ray related products. Also skilling initiative and support would help the healthcare sector. However, the budget did not focus on healthcare infrastructure, the manufacturing of medical devices, or incentives for R&D, which were notable omissions.”