In a significant move to make cancer treatment more affordable, Union Finance Minister Nirmala Sitharaman announced the exemption of three additional cancer medicines from customs duty while presenting the Union Budget 2024-25 recently.

The medicines, Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, were exempted following a request from the Ministry of Health and Family Welfare (MoHFW) to address the needs of the country’s 27 lakh cancer patients. These three drugs are essential in treating various cancer types: Trastuzumab Deruxtecan for breast cancer, Osimertinib for lung cancer, and Durvalumab for lung cancer and biliary tract cancer. This exemption aims to reduce the financial burden on cancer patients by lowering the cost of these crucial medications.

In addition to the exemptions on cancer drugs, the Finance Minister announced revised customs duty rates on X-ray tubes and flat panel detectors. This revision is expected to benefit the X-ray machine industry by reducing component costs, thus promoting domestic manufacturing and enhancing the affordability of advanced medical imaging.

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 for the fiscal year 2024-25. The NHM, a centrally sponsored scheme, primarily focuses on primary and secondary healthcare service delivery. The increased funding aims to strengthen public healthcare facilities, implement preventive and curative health measures, and reduce out-of-pocket expenditure for the public.

The budget also proposes developing Digital Public Infrastructure (DPI) applications on a population scale to drive productivity, business opportunities, and innovation in the private sector. These initiatives are expected to enhance various sectors, including credit, e-commerce, education, health, law and justice, logistics, MSME services, and urban governance.

A notable urban development initiative in the Union Budget 2024-25 is the proposal to develop 100 weekly “haats” or street food hubs in select cities. This initiative aims to boost local economies and enhance the street food experience, contributing to community engagement and urban development.

Trastuzumab Deruxtecan, one of the exempted drugs, has an annual turnover exceeding Rs 276 crore in its various strengths. The 440mg/50ml variant is under the National List of Essential Medicines (NLEM) 2022, with a ceiling price of Rs 54,725.21 per vial. Osimertinib and Durvalumab, the other two exempted medicines, are non-scheduled under the Drug Price Control Order (DPCO), 2013. Osimertinib, regulated under Trade Margin Rationalisation, had an annual turnover of Rs 52.26 crore in 2023-24, while Durvalumab recorded Rs 28.8 crore.

The phased manufacturing program (PMP) for Medical X-ray machines and components, initiated in 2021, aimed to boost domestic production through escalating tariff rates. However, industry representatives highlighted the need for more time to develop manufacturing capacities for X-ray tubes and flat panel detectors. Consequently, the Ministry of Finance revised the duty rates to support the industry until sufficient domestic capacity is established.

These announcements in the Union Budget 2024-25 highlight the government’s commitment to improving healthcare accessibility and affordability, promoting domestic manufacturing, and fostering urban and economic development through innovative initiatives.