Union Budget 2026-27 Exempts Customs Duty on Rare Disease Medicines, Slashes Treatment Costs

In a major healthcare-focused reform, the Union Budget 2026-27 has announced a complete exemption of basic customs duty on medicines, drugs, and Food for Special Medical Purposes (FSMP) used to treat seven additional rare diseases. This is a move that is effective on the personal imports and this will have a direct effect of reducing the financial load on patients who rely on expensive imported treatments. The purpose of the government in removing customs duty is to reduce the cost of life-saving treatments and to fit the fiscal policy to the long-term population health objectives.

Customs Duty Exemption for Rare Disease Treatments

The Union Budget 2026-27 expands duty-free personal imports to cover medicines for Congenital Hyperinsulinemic Hypoglycemia, HoFH, Alpha Mannosidosis, Primary Hyperoxaluria, Cystinosis, Hereditary Angioedema, and Primary Immune Deficiency Disorders. Under the Union Budget 2026-27, imported therapies that earlier attracted high landed costs will now enter India without basic customs duty. This reform is especially essential since the majority of medications against rare diseases are not produced on a domestic level. By focusing on personal imports, the Union Budget 2026-27 ensures targeted relief reaches patients rather than intermediaries, correcting long-standing affordability gaps.

Better Out-of-Pocket Costs and NPRD 2021 Alignment

A key outcome of the Union Budget 2026-27 decision is a sharp reduction in out-of-pocket expenses for families managing ultra-rare genetic disorders. The exemption supports the objectives of the National Policy for Rare Diseases (NPRD) 2021, which emphasises access and affordability. Additionally, the Union Budget 2026-27 reduced the general tariff on other personally imported medical goods from 20% to 10%. This multi level approach demonstrates how the fiscal policy can be converted in a practical manner into patient level relief and cannot be simply as a macroeconomic announcement.

Finance Minister Announces Rs 10,000 Crore ‘Biopharma Shakti’ Initiative

Healthcare Expense and Pharma Domestic Pressure

Beyond rare diseases, the Union Budget 2026-27 introduced the ₹10,000 crore BioPharma Shakti Initiative to boost domestic biologics and biosimilars manufacturing. Basic customs duty was also completely abolished on seventeen cancer saving drugs. The Union Budget 2026-27 allocated ₹1,06,530.42 crore to the Ministry of Health and Family Welfare, reflecting nearly a 10% increase year-on-year. When combined, these steps are indicative of a strategic change whereby the reliance on imports is no longer practised but rather long-term self-reliance is as well coupled with immediate patient relief.