HEALTH

India waives custom duty on cancer, rare diseases drugs

Wednesday, 04 Feb, 2026
India announced a Rs 10,000 crore outlay for the Bio Pharma Shakti scheme. (Photo courtesy: Tara Winstead/www.pexels.com)

New Delhi: The Government has proposed to waive customs duty on 17 drugs for cancer, seven for rare diseases, as well as to build a second National Institute of Mental Health and Neurosciences (NIMHANS) in North India to boost mental healthcare in the country.

Presenting the ninth Union Budget 2026 in the Parliament, Union Minister Nirmala Sitharaman announced relief for cancer and rare disease patients. “Basic customs duty on 17 drugs and medicines will be exempt to help reduce treatment costs,” the Finance Minister said.

“In addition, seven more rare diseases will be brought under duty exemptions for personal imports of drugs, medicines and foods for special medical needs used in cancer care, expanding financial support for patients requiring specialised therapies,” she added.

Sitharaman also emphasised the Centre's support for mental health issues and proposed to set up a NIMHANS 2 in North India. NIMHANS, based only in Bengaluru as of now, is India's only leading centre for psychiatric care and neuroscience research.

Since its establishment, it has played a central role in shaping mental‑health education, advancing research, and providing specialised treatment across the country. In addition, the government will also work on upgrading the National Mental Health Institutes in Ranchi and Tezpur.

The government also proposed two schemes to empower Divyangjan with dignified livelihood opportunities -- Divyangjan Kaushal Yojana and Divyang Sahara Yojana. Sitharaman also announced a Rs 10,000 crore outlay for the Bio Pharma Shakti scheme for biologics and biosimilar drugs to make India a global bio-pharma hub.