Relevance: GS II (Health) & GS III (Economy) | Source: The Hindu

1. What is the Good News?

In a major step to help poor families, the government has completely removed the import tax (Basic Customs Duty) on 17 life-saving cancer medicines.

  • The Benefit: These highly expensive foreign medicines will now become much cheaper in the Indian market, giving huge financial relief to patients fighting for their lives.

2. Why is Cancer a Big Problem in India?

  • Rapid Spread: Cancer cases in India jumped by a massive 26.4% between 1990 and 2023.
  • Crushing Costs: Treating cancer is incredibly expensive. On average, cancer treatment in India costs three times more than the hospital bill for any other normal disease.

3. Why is the Treatment So Costly?

For your UPSC notes, remember these main reasons:

  • Medicines Cost the Most: Almost half (50%) of the money spent on cancer treatment goes just into buying medicines.
  • The Government Hospital Problem: We usually think government hospitals are completely free. But often, public hospital pharmacies run out of stock. So, poor patients are forced to buy costly cancer medicines from outside private medical shops.
  • Village Patients Suffer More: Because of this stock problem, poor patients from rural areas end up spending five times more from their own pockets compared to treating regular diseases.

Key Data points

Feature Details for UPSC Exam
Government Action 100% import tax removed on 17 cancer medicines.
The Health Crisis A 26.4% rise in cancer cases (1990 to 2023).
Main Financial Problem High “Out-of-Pocket” spending on medicines in public hospitals.
Global Target Helps India achieve SDG 3.4 (reducing deaths from diseases like cancer).

4. How Will this Tax Cut Help?

  • Saves Hard-Earned Money: It directly reduces the money patients have to spend from their own savings (called Out-of-Pocket Expenditure).
  • Completing the Treatment: Many poor patients stop taking their chemotherapy medicines halfway because they run out of money. Cheaper medicines will help them complete their full treatment and survive.

UPSC Value Box

Important Concept Explanation
Ayushman Bharat (PM-JAY) A massive government scheme providing free health insurance of ₹5 Lakh per family every year, which helps poor patients afford heavy hospital bills, including cancer treatment.
Customs Duty A tax charged by the Indian government when foreign goods (like medicines) are brought into the country.

With reference to healthcare financing in India, consider the following statements:

  1. Out-of-Pocket Expenditure refers to the financial help given by the government directly to cancer patients.
  2. The recent removal of Basic Customs Duty aims to make imported life-saving cancer medicines cheaper for the public.
  3. Sustainable Development Goal 3.4 targets the reduction of early deaths from diseases like cancer.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Correct Answer: (b)

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