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Budget 2024: Allocation for health ministry rises by 12.59%
Finance minister exempts customs duty on cancer drugs, reducing costs by up to 20%. Health ministry gets 12.59% increase in funds, with a focus on cancer therapy and medical device manufacturing.
Union finance minister Nirmala Sitharaman announced a full exemption from customs duty for three key cancer drugs that oncologists said will significantly benefit patients. According to experts, the overall cost of the three drugs could come down by up to 20% because of the exemption.
The health ministry received ₹90,658.63 crore, a 12.59% increase from last year (as measured by the revised estimates for the 2023-24 fiscal), and the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) saw an allocation of ₹3,200 crore.
The drugs that have received exemption — Trastuzumab Deruxtecan, Osimertinib, and Durvalumab — are used as targeted cancer therapy in certain types of cancers.
Of the ₹ ₹90,958.63 crore, ₹87,656.90 crore has been allocated to the department of health and family welfare and ₹3,301.73 crore to the department of health research.
“All imported life-saving drugs are costly and the same goes for cancer drugs, so customs duty exemption is a welcome step. Since patients require long-term treatment, all steps to bring the cost down are very welcome,” said Dr Shyam Aggarwal, chairman, medical oncology, Sir Ganga Ram Hospital.
Trastuzumab Deruxtecan is an antibody-drug conjugate used primarily to treat HER2-positive breast cancer that has spread to other parts of the body (metastatic). It is also being studied for use in other types of cancer, such as gastric cancer.
Osimertinib is a targeted therapy used to treat non-small cell lung cancer (NSCLC) with specific mutations in the EGFR gene. It is particularly effective against cancers that have developed resistance to earlier generations of EGFR inhibitors.
Durvalumab is an immunotherapy drug that works by blocking the PD-L1 protein, helping the immune system attack cancer cells. It is used to treat non-small cell lung cancer (NSCLC) and urothelial carcinoma (bladder cancer).
“The exact reduction in cost will depend on the current customs duty rates and other associated costs such as import taxes and logistics. Exemption from basic customs duty could potentially reduce the price by 10-20%, making these treatments more affordable for patients. However, precise figures would require detailed pricing and duty structure analysis,” said Mandeep Singh Malhotra, director, surgical oncology at CK Birla Hospital.
Along with the cancer drugs, the finance minister also announced the exemption of customs duty on components of X-ray tubes and digital detectors that the medical devices sector feels will encourage domestic manufacturing.
“Since there are no domestic manufacturers available for these two critical components, the relief from the government is appreciable,” said Rajiv Nath, forum coordinator, Association of Indian Medical Device Industry (AIMED).
Ashutosh Raghuvanshi, managing director and CEO, Fortis Healthcare, said, “Proposing changes in the basic customs duty for X-ray tubes and flat panel detectors under the phased manufacturing programme will significantly benefit domestic OEM by reducing costs, encouraging local sourcing, and enhancing competitiveness. This alignment will foster local manufacturing, drive technological investment, and support the ‘Atmanirbhar Bharat’ initiative, ultimately contributing to economic growth and job creation.”
“Health was not one of the nine main priorities, and the budget could have better tackled the broader challenges in healthcare with a more complete plan. By not making health one of its top nine priorities, it misses the chance to fully address the sector’s broader challenges and opportunities,” said Aashish Chaudhry, managing director, Aakash HealthCare.
