The North News
New Delhi, December 10
India’s drug pricing regulator has tightened its oversight of essential and non-essential medicines, with officials saying the measures have helped curb prices and save patients thousands of crores over recent years. The National Pharmaceutical Pricing Authority (NPPA) fixes ceiling prices for medicines listed under the National List of Essential Medicines (NLEM), issued by the Ministry of Health and Family Welfare and incorporated into Schedule-I of the Drugs (Prices Control) Order, 2013 (DPCO). All manufacturers, marketers and importers must ensure that these scheduled drugs are sold within the notified ceiling price, excluding applicable local taxes.
The information was provided in a written reply to the Rajya Sabha by Anupriya Patel, Minister of State for Chemicals and Fertilisers. The NPPA also regulates the retail prices of new drugs as defined under DPCO 2013—formulations introduced by existing manufacturers by combining an NLEM-listed drug with another medicine, or by altering its strength or dosage. These new formulations cannot be sold at prices higher than those approved by the authority.
For medicines not covered under the schedule, companies are barred from increasing maximum retail prices by more than 10% in any rolling 12-month period. The regulator has also stepped in during extraordinary circumstances to cap prices of selected medical devices and equipment in public interest.
According to government data, ceiling prices have been fixed for 935 essential formulations as of 1 December 2025. The revision of prices under NLEM 2022 resulted in an average price reduction of around 17%, yielding annual savings of nearly ₹3,802 crore for consumers. The NPPA has notified retail prices for over 3,600 new drugs since 2013.
Significant price interventions include:
- Coronary stents, where a price cap led to estimated annual savings of ₹11,600 crore.
- Orthopaedic knee implants, producing estimated annual savings of ₹1,500 crore.
- In 2021, trade margins were capped on items such as oxygen concentrators, pulse oximeters, blood pressure monitors, nebulisers, digital thermometers and glucometers, saving consumers an estimated ₹1,000 crore annually.
The government says these steps, collectively, have ensured annual savings of up to ₹25,000 crore, making India’s drug prices among the lowest globally.
The Centre has also implemented several health schemes aimed at making medicines more affordable:
- Pradhan Mantri Bhartiya Janaushadhi Pariyojana, under which more than 17,000 Janaushadhi Kendras supply quality generic drugs at prices 50–80% lower than branded alternatives.
- Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), providing health assurance of ₹5 lakh per family per year for secondary and tertiary care. Over 42 crore beneficiaries have received PMJAY cards.
- Free Drugs Service Initiative, supplying essential medicines at no cost through public health facilities from primary centres to district hospitals.
- AMRIT pharmacies, offering discounted medicines, implants and consumables for cancer, cardiovascular diseases and other ailments, typically at up to 50% below market rates.
- Financial aid for patients below the poverty line under the Rashtriya Arogya Nidhi and the Health Minister’s Discretionary Grant.
Under DPCO 2013, all drug manufacturers must print the maximum retail price (MRP) on every medicine pack. No retailer may sell a drug above the price listed on the pack or current price notification.
The NPPA said it continually monitors prices of scheduled and non-scheduled formulations. Action is taken against companies found overcharging, based on inputs from state drug controllers, market samples, database reports or public complaints.
