Budget 2026-27: FM proposes BCD Exemption on 17 Drugs and Medicines

The Union Budget for the Financial Year 2026-27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026).

To increase the Ease of living, the government has provided relief to patients suffering from cancer as the Union Budget 2026-27 proposes to exempt Basic customs duty (BCD) on 17 Drugs and medicines.

The modification has been made to List 3 of Table I of Notification No. 45/2025-Customs dated 24.10.2025 to include 17 additional drugs/medicines for exemption from BCD. These exemptions will come into force by February 2 2026.

By expanding the scope of goods eligible for exemption under BCD, the Government seeks to reduce the import cost of these specified medicines.

This measure would lower the treatment costs and improve the access of these medicines essentially required for cancer patients treatment.

Additionally, List 22 of Table 1 of Notification No. 45/2025-Customs dated 24.10.2025 has been modified to include the seven rare diseases as a part of National policy for Rare Disease (NPRD).

This will extend customs duty exemption on drugs, medicines, and food for special medical purposes when imported for personal use. These changes will also come into effect from 2 February 2026.

The modifications introduced in the Union Budget 2026–27 are aimed at enhancing ease of living, particularly for patients requiring critical and long-term medical treatment.

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