Affordable Cancer Medicines in India: Customs Duty Exemption Reduces Treatment Costs
24 March 2026
Affordable Cancer Medicines in India: Customs Duty Exemption Reduces Treatment Costs
The Government of India has announced full exemption of basic customs duty on 17 cancer medicines, aiming to make cancer treatment more affordable. With rising cancer cases and high treatment costs, especially in public hospitals and rural areas, this policy is a significant step toward reducing out-of-pocket expenditure and improving access to life-saving drugs. The measure highlights India’s commitment to strengthening public healthcare and supporting vulnerable patients.
Why in the News?
The Government of India has announced
full exemption of basic customs duty on 17 cancer-related drugs and medicines
in the
Union Budget of India
.
The decision aims to
reduce the cost of cancer treatment
, which is one of the most expensive medical treatments in India.
Cancer treatment costs are
three times higher than the average hospitalisation cost for other diseases
.
Data from the
National Sample Survey Office (NSS) Health Survey 2017-18
shows that the financial burden on cancer patients is extremely high.
The move is also important because India has experienced a
26.4% increase in cancer cases between 1990 and 2023
, making treatment affordability a major public health concern.
What are the Key Highlights?
Rising Cancer Incidence in India
India has witnessed a
26.4% increase in cancer cases between 1990 and 2023
.
This is one of the
highest increases globally
.
The growing number of cases has increased the
financial burden on patients and the health system
.
High Cost of Cancer Treatment
Cancer treatment is much more expensive than other medical treatments.
According to the
NSS 2017-18 health survey
:
Average cost of a typical hospital stay:
₹20,135
Average cost per cancer hospital visit:
₹61,000
This means cancer treatment costs
around three times more than a normal hospitalisation
.
Cost Differences Between Private and Public Hospitals
The cost of cancer treatment varies depending on the type of hospital.
Private hospitals
Average cancer treatment cost:
₹93,305
Average normal hospitalisation:
₹31,845
Cancer care cost is
about three times higher
than normal treatment.
Public hospitals
Average cancer treatment cost:
₹22,520
Average normal hospitalisation:
₹4,452
Cancer care cost is
about five times higher
than normal treatment.
This shows that the
relative financial burden is higher in public hospitals
, where poorer patients seek treatment.
Rural–Urban Differences in Treatment Costs
The financial burden varies by location.
Rural public hospitals
Cancer treatment cost multiplier:
5.5 times higher than normal hospitalisation
Urban public hospitals
Cancer treatment cost multiplier:
4.1 times higher
This shows that
rural patients face greater financial stress
.
In private hospitals, the
cost difference between rural and urban areas is much smaller
.
Widening Cost Gap Over Time
Data from the
National Sample Survey Office Health Survey 2014
shows the earlier situation.
Private hospitals (2014)
Cancer treatment:
₹78,050
Normal hospitalisation:
₹25,850
Cost multiplier:
3 times
Public hospitals (2014)
Cancer treatment:
₹24,526
Normal hospitalisation:
₹6,120
Cost multiplier:
4 times
By
2017-18
, the cost multiplier in public hospitals
increased from 4 to 5
, showing a widening burden.
Medicines as the Largest Component of Treatment Cost
Medicines account for the
largest share of hospitalisation expenditure
.
In public hospitals:
Spending on medicines accounts for
about 40% to 50% of total treatment costs
.
Doctor and surgeon fees are relatively
very low in government hospitals
.
Therefore,
medicine costs become the biggest financial burden
, especially for poor patients.
Government Decision to Reduce Medicine Costs
The government has
removed basic customs duty on 17 cancer medicines
.
This policy aims to:
Reduce treatment costs.
Improve affordability of life-saving drugs.
Lower out-of-pocket expenditure for patients.
What are the Significances?
Reduction in Treatment Costs
Removing customs duty will
reduce the price of cancer medicines
.
Lower drug prices can significantly
reduce the overall treatment cost
.
Relief for Poor Patients
Poor patients depend mainly on
public hospitals
.
Since medicines form a
large share of their expenses
, the duty exemption can reduce their financial burden.
Improvement in Access to Life-Saving Medicines
Lower prices can
increase access to cancer drugs
.
More patients may be able to continue treatment without financial hardship.
Support for Rural Healthcare
Rural patients face a
higher cost multiplier
in public hospitals.
Cheaper medicines can help
reduce rural-urban health inequalities
.
Strengthening Public Health Policy
The measure shows that the government is
recognising the financial burden of cancer treatment
.
It is an important step toward
improving affordability in healthcare
.
Challenges
Rising Cancer Cases
The number of cancer cases in India is
rapidly increasing
.
This will continue to put pressure on
patients and the health system
.
High Out-of-Pocket Expenditure
Many patients still pay a large part of treatment costs
from their own savings
.
Financial protection remains limited.
Limited Public Healthcare Resources
Public hospitals have
limited infrastructure and resources
for cancer treatment.
Increasing patient numbers can overload the system.
Rural Healthcare Inequality
Rural areas face
higher treatment cost burdens
.
Access to specialised cancer care facilities is limited.
Dependence on Expensive Medicines
Cancer treatment relies heavily on
costly medicines and advanced drugs
.
Even small price increases can significantly affect patients.
Way Forward
Expanding Affordable Cancer Medicines
The government should encourage
local production of cancer drugs
.
Generic medicines can reduce treatment costs further.
Strengthening Public Healthcare Infrastructure
More
cancer treatment centres and diagnostic facilities
should be established in government hospitals.
Improving Health Insurance Coverage
Expanding schemes such as **Ayushman Bharat Pradhan Mantri Jan Arogya Yojana can help reduce out-of-pocket expenditure.
Increasing Early Detection and Screening
Early diagnosis can
reduce treatment costs and improve survival rates
.
Awareness campaigns and screening programmes should be expanded.
Special Focus on Rural Areas
More cancer hospitals and diagnostic facilities should be established in
rural regions
.
Regulating Medicine Prices
The government should continue to monitor and regulate
prices of essential cancer drugs
.
Conclusion
Affordable healthcare remains one of the most important goals of a developing society. Policies that reduce the cost of essential medicines and improve access to treatment can help protect vulnerable populations from severe financial hardship while also strengthening the overall health system.
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