What changed since 2025
The timeline below lists the changes the sources record for the sector, in date order, as of 1 October 2026.
| Date | Change | Effect | Source |
|---|---|---|---|
| 22 Sep 2025 | GST cut for health | Most medicines and many medical devices moved to 5% GST; individual health insurance became exempt. Thirty-three life-saving drugs moved from 12% to nil, and three used for cancer, rare and severe chronic diseases from 5% to nil. | PIB, 56th GST Council decisions, Sep 2025 |
| 20 Jan 2026 | NDCT Rules amended | Test-licence timeline cut from 90 to 45 days (G.S.R. 46(E)); the health ministry expects at least 90 days saved in drug development. | Akashvani, 28 Jan 2026 |
| 1 Feb 2026 | Budget 2026-27 | Biopharma SHAKTI (₹10,000 crore over five years) and a scheme for five regional medical hubs announced, with three new All India Institutes of Ayurveda and a scientific review cadre at CDSCO. | Budget speech 2026-27 |
| 2 May 2026 | Land-border rule eased | Press Note 2 (2026) took legal effect: land-border stakes within 10% and without control can use the automatic route, with prior reporting. | DPIIT Press Note 2 (2026) |
| 15 Jul 2026 | India–UK CETA in force | Zero-duty access for about 99% of India’s exports to the UK, with a social security agreement in force the same day. | PIB, 17 Jun 2026 |
| 29 Sep 2026 | US pharma tariff widened | The 100% US tariff on specified patented medicines now covers more companies; qualifying speciality medicines from India may get zero duty, and generics stay outside. | Business Standard, 29 Sep 2026 |
Sources: DPIIT FDI Policy 2020 and Press Note 2 (2026); Business Standard, 8 Nov 2025 and 29 Sep 2026; DoP Annual Report 2025-26; PIB, Sep 2025 and 17 Jun 2026; Akashvani, 28 Jan 2026; Budget speech 2026-27.
Where each change is covered
- GST rates by product: tax and zones.
- Test licences and other approvals: regulators and registrations.
- Biopharma SHAKTI and the medical hubs: central incentives.
- Land-border ownership: FDI rules.
- The India–UK agreement: trade agreements.
- US tariffs and the compliance watch-outs: what to watch.
Later changes are posted on the updates feed.