Health experts hail Customs duty exemption on cancer drugs, demand hike in GDP spend on heathcare

NEW DELHI: Health experts hailed on Tuesday the central government's move to exempt three more cancer drugs from Customs duty but rued that longstanding demands like increasing the GDP spend on healthcare to 2.5 per cent remain unaddressed in the Union Budget.

The drugs are Trastuzumab deruxtecan (for breast cancer or gastroesophageal adenocarcinoma), Osimertinib (for lung cancers with specific mutations) and Durvalumab (for lung and biliary tract cancers).

By exempting these drugs from Customs duty, the government has taken a concrete step towards alleviating the significant financial burden cancer treatment often involves, Dr Ashutosh Raghuvanshi, MD and CEO of Fortis Healthcare Limited said.

Additionally, proposing changes in the BCD (Basic Customs Duty) for X-ray tubes and flat panel detectors under the phased manufacturing programme will significantly benefit domestic OEM manufacturers by reducing costs, encouraging local sourcing and enhancing competitiveness, he said.

However, some longstanding healthcare sector demands such as increasing the GDP spend on healthcare to 2.5 per cent, promoting medical value travel in India, addressing indirect taxation and unused Minimum Alternate Tax credits remain unaddressed, Raghuvanshi said.

Dr Shuchin Bajaj, founder and director of the Ujala Cygnus Group of Hospitals, said the healthcare sector had expected more from the budget as it had urged the government to boost spending, infrastructure and innovation to address emerging health threats and achieve universal coverage.

"The customs duty exemptions for cancer patients are a welcome move, and we appreciate the proposed changes in the BCD for X-ray tubes and flat panel detectors to align with domestic capacity addition. However, industry leaders were anticipating more," he said.

Abhishek Kapoor, CEO of Regency Health, said the increased funding for biotechnology research and development from Rs 500 crore to Rs 1,100 crore underscores the government's dedication to innovation and enhancing healthcare facilities.

"While the current budget allocations and initiatives are promising, an increased allocation for building and upgrading hospitals, clinics, and diagnostic centres would have significantly bolstered our healthcare infrastructure," he said.

Dr Girdhar Gyani, director general of the Association of Healthcare Providers (AHPI), said while the government proposed several developments for the healthcare sector in the interim budget earlier this year, the new budget falls short of expectations as it lacks detailed allocations for the sector.

"We hoped for more comprehensive funding and support for healthcare infrastructure and services. We expected an increased budget for PMJAY to cater for enhanced cover for senior citizens, including long-pending revision of reimbursement rates," Gyani said.

The Customs duty exemption on three more cancer treatment drugs is a commendable step that will make essential medications more affordable and accessible, he said.

Deepak Sharma, co-founder and CEO of MedLern, welcomed the Union Budget's allocation of Rs 1.48 lakh crore for education and employment, recognising the crucial need for skilling across sectors, especially healthcare.

"This significant investment will greatly enhance the training and development of the healthcare workforce, including nurses and hospital staff, ensuring they are equipped with the latest skills and knowledge," Sharma stated.

The budget's focus on employment, skilling, MSMEs and the middle class makes it a robust proposition, he said.

Dr Dharmesh Shah, founder and director of Holistica World, said the expansion of digital infrastructure is a crucial step forward, enhancing the efficiency and accessibility of healthcare services across the country.

The establishment of new medical colleges is set to increase the number of trained medical professionals, addressing critical shortages and improving healthcare delivery in underserved areas.

"Furthermore, the relief measures for cancer patients are promising," Dr Shah said.

"However, increasing healthcare expenditure to 2.5 per cent of GDP, besides greater emphasis on research and development, alongside optimised tax incentives and GST rates, could drive further innovation and efficiency in the sector," he said.

Shyam Aggarwal, chairman of the Department of Medical Oncology at Sir Ganga Ram Hospital, said all imported life-saving drugs are costly and the Customs duty exemption is a welcome step.

Dr Mandeep Singh Malhotra, director of surgical oncology at the C K Birla Hospital in Delhi, said the exemption from basic customs duty could potentially reduce the price of the cancer drugs by 10-20 per cent.

However, precise figures would require detailed pricing and duty structure analysis, he added.

Vikram Thaploo, CEO of Telehealth at Apollo Hospitals Enterprises Limited, said, "While the current budget allocations are promising, additional support for digital health technologies would have significantly bolstered our healthcare infrastructure. Additional investments in digital health could have further helped bridge the gap between urban and rural healthcare, enhance efficiency and reduce costs."

WHO Representative to India Dr Roderico H Ofrin said, "The significant boost in fund allocation for health, including AYUSH, underscores the government's commitment to health promotion, disease elimination and strengthening public healthcare services."