Union Budget 2026: Major Healthcare Boost with Customs Duty Waivers on Life-Saving Drugs and New NIMHANS-2

NEW DELHI, February 1, 2026 — In a landmark move to make specialized healthcare more affordable, Union Finance Minister Nirmala Sitharaman announced a total waiver of basic customs duty on 17 essential cancer drugs and seven medicines for rare diseases during the presentation of the Union Budget 2026.

This fiscal relief is aimed at significantly reducing the high cost of treatment for patients requiring specialized therapies and personal imports of medical foods. Beyond financial concessions, the government has prioritized the nation’s mental health infrastructure by proposing the establishment of NIMHANS-2 in North India. This new institute will mirror the excellence of the original Bengaluru-based National Institute of Mental Health and Neurosciences, addressing the acute shortage of dedicated psychiatric care and neuroscience research facilities in the northern region.

Complementing these major projects, the budget outlines a comprehensive plan to upgrade the National Mental Health Institutes in Ranchi and Tezpur and expand the capacity of district hospitals by 50% through new emergency and trauma care centres.

This expansion is designed to bridge the healthcare gap for vulnerable populations in rural areas. Furthermore, the government introduced two pivotal schemes for the empowerment of Divyangjan (persons with disabilities): the Divyangjan Kaushal Yojana, which provides industry-specific vocational training, and the Divyang Sahara Yojana.

The latter will support the Artificial Limbs Manufacturing Corporation of India (ALIMCO) in scaling up production using AI and R&D, while also establishing modern “Assistive Technology Marts” to ensure dignified livelihood opportunities and better access to assistive devices across the country.