• Biocon's chair urges India to remove taxes on cancer and chronic disease drugs to ease financial strain on patients.
  • Calls include cutting import duties on medical equipment to make lifesaving treatments more affordable.

Kiran Mazumdar-Shaw, chairperson of Biocon Ltd, has called for eliminating taxes on medications for cancer, chronic illnesses, and rare diseases. Her appeal comes ahead of India's budget announcement next month by Prime Minister Narendra Modi's government.

The Biocon’s chair highlighted the financial burden of medical expenses in India, where out-of-pocket payments dominate healthcare costs. Speaking to Reuters, she emphasized the need for tax exemptions on lifesaving therapies and diagnostic scans to make them more affordable.

"All cancer-related drugs are expensive. Any drug used for chronic therapy with a monthly treatment cost exceeding ₹5,000 ($60) should also be exempted from tax," she stated.

India currently imposes a 12% tax on medication for chronic diseases, according to Rajiv Singhal, general secretary of the All India Organisation of Chemists and Druggists. He noted that this tax adds to the financial strain on patients in a price-sensitive market like India.

"The government should not prioritize profitability over accessibility to essential medicines," Singhal added.

While the government recently exempted three cancer drugs from customs duty and reduced taxes on some medications, Mazumdar-Shaw argued that further measures are needed. She also urged reducing import duties on high-tech medical instruments and materials used to develop precision medicines, stating, "This will make a big difference to patients." India's import tax on medical equipment can reach 36%.

Mazumdar-Shaw’s Immuneel Therapeutics startup is actively working on cell therapy, reflecting the industry’s push toward innovative treatments. India’s pharmaceutical sector, a major global player, also aims to leverage geopolitical shifts, including potential trade tensions between the U.S. and China, to expand its market share.

Edited by Harshajit Sarmah