Archive · 1 Feb 2026
Budget 2026: Tariff Changes and Drug Exemptions
The government has announced changes in the budget for 2026.
They are reducing the tax on items people bring in from other countries for personal use from 20% to 10%.
This means things like expensive personal items, microwave ovens, sports equipment, mobile phones, electric vehicle batteries, and solar panels will become cheaper.
Additionally, 17 drugs used to treat cancer and specific rare diseases have been exempted from basic customs duty, and 7 rare diseases have been exempt from import duties on personal imports of drugs and special medical foods.
The goal is to make these items and medicines more affordable for everyone and to help local companies that make these products.
However, some experts argue that the drug exemptions may not significantly lower prices for most patients.
Import tariffs for personal use items reduced from 20% to 10%.
Microwave ovens, sports equipment, and certain electronics to become more affordable.
Exemptions on capital goods and critical inputs for domestic manufacturing in sectors like nuclear energy, aircraft, clean energy, electronics, and healthcare.
17 drugs for cancer and rare diseases exempted from basic customs duty, and 7 rare diseases exempt from import duties on personal imports of drugs and FSMP.
Expected to lower costs for high-value personal items purchased overseas and support both consumers and domestic manufacturers.
- Who
- Government of India
- What
- Reduction in import tariffs for personal and manufacturing goods, and exemptions on certain drugs
- When
- Budget 2026
- Where
- India
- Why
- To lower costs for consumers, support domestic manufacturers, and make medicines more accessible
Pharma Industry and Government
Treatment Activists and Working Group on Access to Medicines
Impact of BCD Exemption on Drug Prices
Pharma Industry and Government
The exemption will make medicines more accessible and reduce the cost burden for patients, especially for advanced and life-saving therapies.
Treatment Activists and Working Group on Access to Medicines
The exemption will deliver minimal benefits as the maximum retail prices remain unaffordable for most Indians, and there's no evidence that companies reduced prices in response to previous exemptions.
- Tariff Reduction
- 20% to 10% for personal use items
- Affected Items
- High-value personal items, microwave ovens, sports equipment, mobile phones, electric vehicle batteries, solar panels, 17 drugs for cancer and rare diseases
- Expected Impact
- Lower cost for imported goods and domestic manufacturing inputs
- Drug Exemptions
- 17 drugs exempted from basic customs duty, 7 rare diseases exempt from import duties on personal imports of drugs and FSMP
- Capital Goods Exemptions
- Exemptions on capital goods and strategic inputs in sectors like nuclear energy, aircraft, clean energy, electronics, and healthcare
