Appreciate extending full exemption and concessional tariffs to bulk drugs used for selected lifesaving drugs but hope for stronger push towards pharma R&D as the wait for the PRIP schemes is getting longer than expected
Satish Reddy, Chairman, Dr Reddy’s Laboratories
Union Budget 2025-26 takes strong steps towards nation-building through structural reforms such as investment in technology and infrastructure, simplification of tax slabs and duties, and announcements in critical areas such as tax relief for the salaried class, inclusive growth, climate action, agriculture, among others.
It has also provided for resilience in the healthcare infrastructure of the country through cancer day centres, medical education, further custom duty exemptions for life-saving drugs, and encouragement to medical tourism and ‘Heal in India’.
The continued focus on the investment in private sector-driven research, development and innovation announced last year is welcome, as are measures for digital education, fostering scientific curiosity and innovation among youth, and Centres of Excellence for skilling to support ‘Make for India, Make for the World’ manufacturing. We look forward to studying the detailed proposals.
Saransh Chaudhary, President, Global Critical Care, Venus Remedies and CEO, Venus Medicine Research Centre
The Union Budget 2025 has brought several positive developments for the pharma industry, including full exemption from basic customs duty on 36 lifesaving drugs and concessional duty of 5 per cent on 6 more. The government’s decision to fully exempt specified drugs under Patient Assistance Programmes (PAPs) and add 37 new medicines along with 13 additional PAPs will significantly improve access to critical medicines and reduce treatment costs for patients in need.
The announcement to set up Day Care Cancer Centres in all district hospitals over the next three years—starting with 200 in 2025-26—is a commendable step in strengthening cancer care infrastructure. This initiative will provide patients with first-hand assistance from healthcare professionals while easing the burden on tertiary hospitals and ensuring timely treatment closer to home.
While these are welcome steps, we had hoped for a stronger push towards pharma R&D. Increasing allocation beyond the current 1 per cent of GDP, raising the weighted tax deduction for R&D expenditure from 100% to 200%, and swiftly rolling out the Research Linked Incentive scheme remain critical to fostering drug innovation. We urge the government to consider these priorities to further bolster research in India’s pharma industry and healthcare ecosystem.
Arjun Juneja, COO, Mankind Pharma and Chairman, Pharma Committee, FICCI
The Union Budget 2025-26 lays a solid foundation for India’s pharma sector and enhances healthcare accessibility. The exemption of Basic Customs Duty on 36 life-saving drugs makes critical treatments, especially for oncology and rare diseases, more affordable, aligning with the government’s vision of a self-reliant India. The establishment of Day Care Cancer Centres and expansion of Patient Assistance Programs (PAPs) will further improve patient access to essential treatments.
The budget’s focus on 5 per cent concessional duties on essential medicines and bulk drug exemptions will optimise production costs, boost domestic manufacturing, and drive innovation. The commitment to adding 75,000 medical college seats and the creation of a Centre of Excellence in AI further strengthens the healthcare ecosystem.
The ‘Heal in India’ initiative, combined with streamlined medical tourism policies, positions India as a global healthcare hub, driving demand for high-quality, affordable medicines. These reforms are a significant step toward making India a global leader in pharmaceuticals, and we at Mankind Pharma are excited to support and contribute to this transformation.
Sanjiv Navangul, MD & CEO, Bharat Serums and Vaccines
The Union Budget 2025 reinforces India’s commitment to innovation, healthcare accessibility, and women’s empowerment. Strengthening R&D and fostering industry collaboration will accelerate biotech and pharmaceutical advancements, making India a global hub for healthcare innovation. However, the wait for the PRIP schemes is getting longer than expected!
The focus on nutrition and maternal health through targeted programs is a crucial step in building a healthier future. Additionally, improving access to lifesaving drugs and streamlining regulatory pathways will enhance affordability and availability of critical treatments. A strong push towards policy and infrastructure support will further drive healthcare transformation, ensuring equitable and sustainable impact.
Dr Krishna Prasad, Chigurupati Chairman & Managing Director, Granules India
Exempting 36 life-saving pharmaceuticals from basic customs duty and adding six essential medicines under a concessional 5 per cent duty will significantly enhance access to critical therapies. Extending full exemption and concessional tariffs to bulk drugs used in their manufacturing will further improve affordability and availability.
The expansion of medical education with 10,000 additional seats and the establishment of 200 daycare cancer centers in FY 2025-26 will strengthen healthcare infrastructure, enabling early diagnosis and treatment. Additionally, the establishment of five National Centers of Excellence for Skilling, along with global skilling collaborations, will equip India’s workforce with the expertise needed to drive pharmaceutical innovation and manufacturing.
These strategic initiatives reinforce India’s commitment to providing accessible and cost-effective healthcare solutions.
Shweta Rai, MD for India and Country Division Head for South Asia, Bayer’s Pharmaceuticals
The government has laid a strong emphasis on healthcare with multiple measures from increasing medical insurance coverage at the individual level to promoting Global Capability Centers in tier 2 cities.
We applaud the exemption of 36 life-saving drugs from Basic Customs Duty (BCD) and the addition of six more medicines under concessional duty will provide significant relief to patients, particularly those suffering from cancer, rare diseases, and other chronic conditions. The expansion of Patient Assistance Programs, with new medicines and additional programs, will ensure that more patients can access vital treatments.
The government’s focus on increasing PG and UG in medical colleges, will improve the patient to HCP ratio and thereby the access and quality to care. These efforts are highly appreciated and we look forward to continued collaboration with the government to enhance healthcare access for all.
Sandeep Verma, Country Head for India, Bangladesh and Sri Lanka at Bayer Consumer Health
The Union Budget 2024-25 reinforces India’s commitment to inclusive growth, healthcare innovation, and improved access to nutrition. The strengthened support for Saksham Anganwadi and Poshan 2.0 is a crucial step to ensure better health outcomes for children, adolescent girls, and pregnant women.
The government’s push to enhance production and consumption of essential fruits and vegetables is a great step to improve nutritional accessibility. We applaud the efforts of the government and look forward to collaborating towards making ‘Health for All’ a reality.”
Nikhil Chopra, CEO & Whole Time Director, JB Pharma
This year’s budget sets a clear direction for India’s pharma and healthcare sectors, with a strong focus on manufacturing, innovation, and building infrastructure for the future. I believe this is a transformative moment.
The government’s push for Make in India—combined with expanded customs duty exemptions on lifesaving medicines—is poised to lower costs and increase access to essential treatments. The creation of comprehensive cancer care centres nationwide, along with enhanced healthcare infrastructure, will ensure more equitable access to early and advanced treatments across India.
The recommendation to allow up to 100 per cent FDI in insurance can be a complementary to the focus on enhancing access to cancer care. With the relaxation of guardrails for foreign investment, the insurance sector can now support new healthcare models that align with the government’s vision of building a self-reliant, globally competitive healthcare industry.
Equally important is the focus on domestic manufacturing and technological advancements. The National Manufacturing Mission is set to strengthen India’s production capabilities, while the Centres of Excellence for skilling aim to cultivate a future-ready workforce. Moreover the investments in AI-driven education have the potential to accelerate healthcare innovation. A crucial aspect of this budget is the focus on simplifying the customs tariff structure and addressing duty inversion. Streamlining cargo clearance processes will hopefully help ease the supply chain challenges that the pharmaceutical industry has faced for years.
The budget’s emphasis on Heal in India, with enhanced private sector partnerships and streamlined medical travel, positions India as a premier destination for high-quality, affordable treatments. This will not only benefit our domestic patients but also attract international medical tourism, showcasing our healthcare sector’s growth potential.
Swapnil Shah, MD, Senores Pharmaceuticals
The exemption of basic customs duty on 36 life-saving drugs and the reduction of duties on six others is a significant step toward making critical treatments more accessible and affordable for patients battling cancer, rare diseases, and chronic conditions.
Additionally, the extension of full exemption and concessional duty on bulk drugs used in manufacturing these medicines will further strengthen the healthcare ecosystem.
Full exemption for patient assistance programmes ensures free therapies reach those in need. With 37 new medicines and 13 additional programs, this initiative reflects the government’s commitment to making healthcare more equitable and accessible for all.
Vishal Goel, MD, Rx Propellant
Among the ten broad areas outlined in the Union Budget 2025-26, two—Investing in People, Economy, and Innovation and Nurturing Innovation—are highly relevant to India’s life sciences sector. The ₹20,000 crore allocation for private-sector-driven R&D, along with the proposed Deep Tech Fund of Funds, underscores the government’s commitment to promoting biotech and medtech innovation.
This strategic investment is expected to accelerate cutting-edge research, translational medicine, and breakthrough discoveries, strengthening India’s position as a global hub for life sciences R&D. The emphasis on deep tech and innovation-driven enterprises will facilitate greater collaboration between academia and industry, creating an ecosystem conducive to high-value research and technology commercialisation.
Hari Chereddi, CEO, HRV Global Life Sciences
I wholeheartedly welcome the government’s decision today to exempt Basic Customs Duty (BCD) on 36 life-saving drugs and extend concessional duty benefits to additional critical medicines.
This progressive move will significantly improve access to essential treatments for patients battling cancer, rare diseases, and other chronic conditions.
At HRV Global Life Sciences, we have advocated innovation in the niche and orphan drug segments with the aim of making life-saving medicines accessible and affordable. This policy of ours towards improving global health access, shows that committed pharma innovation will help improve patient outcomes worldwide.
Dr Saloni Wagh, MD, Supriya Lifescience
The Union Budget 2025 – 26 continues to build upon India’s growth story by focusing on the Garib, Youth, Annadata and Nari, making sure that the four pillars of the economy are well taken care of. Committing to women empowerment alongside better health care is very significant, and the Saksham Anganwadi and Poshan 2.0 schemes will support nutrition to mothers, children, and adolescent girls. These initiatives will go a long way in making India a healthier nation.
The daycare cancer centres in the district hospitals will be the most beneficial announcement as they ensure that people all around the country will have easy and timely access to cancer care. Further, the inclusion of 36 life-saving drugs into the full customs duty exemption and the concessional rates for others will aid patients suffering from cancer, rare diseases, and chronic conditions. Strengthening the Indian medical economy and making vital medicines more affordable will have a positive impact on society.
A customised tariff structure will aid the pharma sector in making manufacturing and the export of medicines easier, putting India in a stronger position as a pharma superpower. The government’s intention of lowering the ‘Ease of Doing Business’ and the new manufacturing mission under ‘Make in India’ will also boost development and further aid the innovation.
This budget strengthens India’s consumption story as well as further inclusion. As we step forward into a ‘Viksit Bharat’, the areas of healthcare, women, and industrial expansion will greatly influence the tomorrow.
Ankush Kapoor, CEO and Founder of PharmNXT Biotech
The rising burden of cancer and other life-threatening conditions makes this year’s budget a significant step toward improving patient access to critical treatments. With approximately 70 million people affected by rare diseases, 80 per cent of which are genetic, the government’s decision to fully exempt 36 lifesaving drugs from Basic Customs Duty (BCD) and extend concessional 5 per cent duty to six additional medicines will substantially lower treatment costs and enhance affordability.
Furthermore, extending full BCD exemption to 37 more medicines under Patient Assistance Programs, along with 13 new such programmes will ensure a broader access to essential medicines at no cost to patients.
The government’s commitment to advancing healthcare and building an integrated ecosystem for biotechnology is further reflected in the increased budget allocation for the Department of Biotechnology, rising from ₹2,460.13 crore in 2024 to ₹3,446.64 crore in 2025, an almost 40 per cent increase. The budget also reflects a forward-looking investment strategy with ₹20,000 crore allocated for private-sector research, which should be strongly leveraged by the pharma and biopharma sector to enable drug discovery and localised manufacturing.
Malavika Kaura Saxena, CMO, Rusan Pharma
The scale-up of cancer care centres in Budget 2025 is a transformative step toward improving accessibility and easing the burden on overstretched healthcare infrastructure. We urge policymakers to ensure these centres integrate pain management and palliative care, which are critical to holistic cancer treatment.
The tax exemptions for life-saving drugs and rare disease therapies is a move in the right direction, as they will enhance affordability and availability for patients. These measures align with Rusan’s mission to prioritise patient-centric, accessible healthcare solutions.
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