New Delhi, India: India continues to regulate medicine prices through the National Pharmaceutical Pricing Authority (NPPA), while expanding initiatives aimed at improving access to affordable and quality medicines across the country.
The government regulates drug prices under the Drugs (Prices Control) Order, 2013 (DPCO 2013), which is based on the principles of the National Pharmaceutical Pricing Policy, 2012. Under the framework, the National Pharmaceutical Pricing Authority (NPPA) fixes ceiling prices for formulations included in Schedule-I of the DPCO and determines retail prices for new drugs based on market data and applicable provisions.
The notified ceiling prices for scheduled medicines apply to all manufacturers, while retail prices fixed for new drugs apply to the respective applicant manufacturer and marketer. Manufacturers can sell scheduled medicines below the notified ceiling price, but cannot charge more than the applicable ceiling price or notified retail price, along with applicable GST.
For non-scheduled medicines, manufacturers can determine prices but are not permitted to increase the maximum retail price by more than 10% during the preceding 12 months. The government stated that such price regulation, along with other healthcare initiatives, has contributed to a decline in the share of out-of-pocket expenditure in total health expenditure from 62.6% in 2014-15 to 43.2% in 2022-23.
The NPPA monitors compliance with the DPCO 2013 and takes action against overcharging and other violations. Monitoring is supported by Price Monitoring and Resource Units in states, State Drug Controllers, market samples, market databases and complaints received through grievance redressal channels.
The DPCO also requires manufacturers to print the maximum retail price on the label of medicine containers. No medicine can be sold to consumers at a price exceeding the price specified on the current price list or printed on the label, whichever is lower.
Alongside price regulation, the government has introduced several programmes to improve access to affordable medicines. Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana, quality generic medicines are supplied through more than 20,000 Jan Aushadhi Kendras, with prices typically 50% to 80% lower than branded medicines.
The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) provides health assurance coverage of up to ₹5 lakh per family per year for secondary and tertiary care hospitalisation, including medicines.
Under the Free Drugs Service Initiative of the National Health Mission, essential medicines recommended under the Indian Public Health Standards are made available free of charge at public health facilities ranging from Primary Health Centres to district hospitals.
The Affordable Medicines and Reliable Implants for Treatment (AMRIT) initiative also provides affordable medicines, implants, surgical disposables and other healthcare consumables through AMRIT Pharmacy stores established at hospitals and healthcare institutions. According to the government, these products are available at an average discount of up to 50% compared with market rates.
Financial assistance is also provided to eligible poor patients suffering from major life-threatening diseases, including cancer, through schemes such as Rashtriya Arogya Nidhi and the Health Minister’s Discretionary Grant.
The government said these measures collectively aim to strengthen medicine price regulation, improve affordability and expand access to essential healthcare for people across India.
Source: This article is based on an official press release issued by the Press Information Bureau (PIB), Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals, Government of India
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