Stocks of pharmaceutical companies traded mixed after Finance Minister Nirmala Sitharaman announced exemptions from basic customs duty (BCD) for 36 life-saving drugs. Also, six lifesaving drugs will be charged with only a concessional duty.
"Exempting 36 life-saving pharmaceuticals from basic customs duty and adding six essential medicines under a concessional 5 percent 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," said Krishna Prasad Chigurupati, Chairman & Managing Director, Granules India.
Since the tax exemption on life-saving drugs was just one of the many demands from the pharma sector, the finance minister's announcement failed to elicit a sharp positive reaction in pharma stocks.
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Likewise, pharma names like Sun Pharma, Mankind Pharma, Ajanta Pharma, Divi's Labs and Biocon were up up to 2 percent. On the other hand, others like Cipla, Dr Reddy's Labs, Zydus Life and Lupin were down 1-2 percent.
Meanwhile, the finance minister also announced measures to increase seats in medical education by 10,000, along with the establishment of 200 daycare cancer centers in FY26, which according to industry experts, will help strengthen healthcare infrastructure and workforce.
Additionally, the government’s initiative to simplify visa procedures for patients seeking treatment in India will further enhance the country’s medical tourism sector. "This cross border flow of patients and healers will expand the market and create more proficient workers," said Pavan Choudhary, Chairman, Medical Technology Association of India.
Other demands from the sector included policy support for research and development and a production-linked incentive scheme towards hospitals, aimed towards promoting bed additions. The sector was also hoping to see increased healthcare spending, an ask that was left unanswered.
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