Lok Sabha Question No. 4666 (UNSTARRED), answered on 2025-03-28
Subject: Sale of Generic Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Ramasahayam Raghuram Reddy

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION No. 4666 TO BE ANSWERED ON 28 th  MARCH, 2025

## Sale of Generic Medicines

## 4666. Shri Ramasahayam Raghuram Reddy:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether the Government has promoted the use of generic medicines through the Jan Aushadhi Kendras under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) to provide affordable healthcare options to citizens, if so, the details thereof, and if not, the reasons therefor;

(b) the impact of these steps on healthcare affordability; and

(c) the extent to which the regulation of drug prices by the NPPA has reduced the cost of critical medicines, particularly for chronic diseases?

## ANSWER

## THE  MINISTER  OF  STATE  IN  THE  MINISTRY  OF  CHEMICALS  AND FERTILIZERS

(SMT. ANUPRIYA PATEL)

(a):  To  spread  awareness  about  the  Pradhan  Mantri  Bhartiya  Janaushadhi  Pariyojana scheme,  the  Pharmaceuticals  and  Medical  Devices  Bureau  of  India,  the  scheme implementing  agency  of  Pradhan  Mantri  Bhartiya  Janaushadhi  Pariyojana,  regularly undertakes several activities, including the following:

- (i) Issuance of advertisements in various modes, such as the print media, radio, TV, mobile application, cinema, hoardings, branding of bus queue shelters and buses, auto wrapping and TV screens at Common Service Centres;
- (ii) Outreach through social media platforms, such as Facebook, X, Instagram and YouTube; and
- (iii) Celebration of Jan Aushadhi Diwas on the 7 th of March every year.

(b):  Under  Pradhan  Mantri  Bhartiya  Janaushadhi  Pariyojana  scheme,  quality  generic medicines  is  being  made  available  through  a  network  of  over  15,000  Jan  Aushadhi Kendras at maximum retail prices (MRPs) that are about 50% to 80% lower than MRPs of leading branded medicines in the market. On an average, 10 to 12 lakh persons visit Jan Aushadhi Kendras daily and avail of quality medicines at affordable prices. In the last 10 years, medicines worth ₹6,975 crore in MRP terms have been sold through JAKs, resulting in estimated savings of about ₹30,000 crore to citizens in comparison to the prices of branded medicines.

(c): Currently, the prices of drugs in the country are regulated as per the principles laid down  in  the  National  Pharmaceutical  Pricing  Policy,  2012  (NPPP,  2012)  which  is operationalised  through  the  Drug  (Prices  Control)  Order,  2013  (DPCO,  2013).  The National Pharmaceutical Pricing Authority (NPPA) fixes the ceiling prices of scheduled medicines notified as Schedule-I of the DPCO,  2013 by the Department of Pharmaceuticals.  The  National  List  of  Essential  Medicines  (NLEM)  published  by  the Ministry of Health and Family Welfare is incorporated as the Schedule-I of the DPCO. Presently, NLEM, 2022 is notified as Schedule-I of DPCO, 2013 vide notification dated 11.11.2022.

NPPA fixes the ceiling prices of scheduled medicines, that is, the medicines specified in the said Schedule. The prices fixed by NPPA are applicable to all manufacturers/marketers selling the specified formulations, whether generic or branded. Manufacturers/marketers of scheduled medicines (branded or generic) are required to sell the  same within the  ceiling  price  fixed  by  the  NPPA  and  applicable  GST  and  annual revision on the basis of WPI.

The average price reduction due to refixation of prices under NLEM, 2022 is about 17%, leading to annual savings of approximately ₹3,788 crore to patients.

NPPA also fixes the retail prices of new drugs as defined in DPCO, 2013 for existing manufacturers of scheduled formulations. Retail price of over 3,100 new drugs under DPCO, 2013 till 13.2.2025 have been fixed.

For non-scheduled formulations (branded or generic), the manufacturers may not increase the maximum retail price of such formulations by more than 10% per annum. In addition, NPPA has fixed the prices of number of drugs, in public interest, as follows:

- (i) In  2014,  NPPA  capped  the  MRP  of  106  non-scheduled  anti-diabetic  and cardiovascular treatment drugs, resulting in estimated annual savings of about ₹350 crore to patients.
- (ii) Trade margin of non-scheduled formulations of 42 select anti-cancer medicines were capped under a trade margin rationalisation approach, wherein price of about  500  brands  of  medicines  were  reduced  by  an  average  of  about  50%, resulting into estimated annual saving of about ₹ 984 crore to patients.
- (iii) In  February  2017,  ceiling  prices  of  coronary  stents  were  fixed,  resulting  in estimated annual savings of about ₹11,600 crore to patients.
- (iv) In  August  2017,  ceiling  prices  of  orthopaedic  knee  implants  were  fixed, resulting in estimated annual savings of about ₹1,500 crore to patients.
- (v) In June/July 2021, trade margin of oxygen concentrators, pulse oximeter, blood pressure monitoring machine, nebuliser, digital thermometer and glucometer were also capped, resulting in estimated annual savings of about ₹1,000 crore to consumers.

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