The Union Finance Minister Smt. Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament, bringing some good news for cancer patients and the healthcare sector. In a move to make cancer treatment more affordable, three additional cancer drugs—Trastuzumab Deruxtecan, Osimertinib, and Durvalumab—have been exempted from customs duty. This decision comes following a request from the Ministry of Health and Family Welfare (MoHFW), considering the 27 lakh cancer patients in the country.
Cancer Medicines Get Customs Duty Exemption
The three exempted cancer drugs are crucial for treating various types of tumors:
- Trastuzumab Deruxtecan – Used for Breast Cancer
- Osimertinib – Used for Lung Cancer
- Durvalumab – Used for Lung Cancer and Biliary Tract Cancer
This exemption aims to make these expensive drugs more affordable for patients, potentially reducing the overall cost of cancer treatment.
Revised Custom Duty Rates for Medical Equipment
In addition to the cancer drugs exemption, the Finance Minister also announced revised custom duty rates for X-ray tubes and flat panel detectors. These changes are expected to lower the costs of X-ray machines, benefiting the domestic medical device industry. By making these components cheaper, the government hopes to enhance the availability of advanced medical imaging and reduce healthcare costs, making it more accessible to the public.
Increased Budget for National Health Mission
The budget for the National Health Mission (NHM) has been increased by approximately Rs 4,000 crore, from Rs 31,550 crore to Rs 36,000 crore. The NHM focuses on primary and secondary healthcare services across the country. This increase in funding will help improve public healthcare facilities, emphasizing preventive and curative healthcare to reduce out-of-pocket expenses for the public.
Development of Digital Public Infrastructure
To drive innovation and improve productivity, the budget proposes the development of Digital Public Infrastructure (DPI) applications on a large scale. These applications will target various sectors including credit, e-commerce, education, health, law and justice, logistics, MSME services, delivery, and urban governance. The aim is to enhance services and create new business opportunities.
Promotion of Street Food Hubs
The budget also includes a proposal to develop 100 weekly “haats” or street food hubs in selected cities. This initiative is designed to boost local economies, enhance the street food experience, and promote community engagement, contributing to urban development.
Background on Cancer Drugs and Medical Equipment
Cancer Drugs:
- Trastuzumab Deruxtecan: Trastuzumab Injection 440mg/50ml is a scheduled drug under the National List of Essential Medicines (NLEM) 2022, with a ceiling price fixed by the National Pharmaceutical Pricing Authority (NPPA) at Rs. 54,725.21 per vial. However, its other strength variants are not scheduled, and the drug has an annual turnover of more than Rs. 276 crores.
- Osimertinib and Durvalumab: These are non-scheduled drugs under the Drug Price Control Order (DPCO) 2013. The NPPA monitors their maximum retail prices (MRP) to ensure they do not increase by more than 10% annually. Osimertinib had an annual turnover of Rs. 52.26 crore in 2023-24, and Durvalumab had Rs. 28.8 crore.
Manufacturing of Medical X-Ray Machines:
The government aims to promote the domestic manufacturing of medical X-ray machines and their components through the Phased Manufacturing Programme (PMP), introduced in January 2021. This program proposed increasing tariffs on X-ray machines and their parts in phases to encourage local production. However, the industry requested a revision of the PMP schedule due to insufficient domestic manufacturing capacity for X-ray tubes and flat panel detectors. The revised customs duty rates for these components were announced on July 23, 2024.
The Union Budget 2024-25 reflects the government’s commitment to improving healthcare affordability and accessibility, supporting domestic manufacturing, and fostering innovation and urban development.
