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Government's Price Control Measures on Pharma Products Deliver Annual Savings of INR 25,000 Crore

Government's Price Control Measures on Pharma Products Deliver Annual Savings of INR 25,000 Crore

The National Pharmaceutical Pricing Authority (NPPA) has fixed ceiling prices for 935 scheduled formulations as of early December, resulting in estimated annual savings of around INR 3,802 crore for the public. These measures form part of the government’s broader strategy to improve affordability and access to essential medicines and medical devices across the country.

According to details shared by Minister of State for Chemicals and Fertilizers Anupriya Patel in the Rajya Sabha, the government’s pricing interventions—including regulation of drugs, stents and implants—have collectively ensured annual savings of up to INR  25,000 crore for citizens.

The ceiling prices of coronary stents continue to generate substantial benefits, delivering estimated yearly savings of approximately INR 11,600 crore. Similarly, the price cap on orthopaedic knee implants has resulted in annual savings of around INR 1,500 crore for patients. The minister noted that the average price reduction following the refixation of prices under the National List of Essential Medicines (NLEM) 2022 was about 17 percent.

Additionally, retail prices for more than 3,600 new drugs have been notified under the Drug Price Control Order (DPCO) 2013 as of December 1, strengthening regulatory oversight on essential medicines.

Beyond drug and device price caps, the government has also controlled trade margins on key medical equipment, including oxygen concentrators, pulse oximeters, blood pressure monitors, nebulisers, digital thermometers, and glucometers. These interventions, implemented in mid-2021, have led to estimated annual savings of about INR 1,000 crore.

To further enhance access, multiple schemes have been rolled out. Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), over 17,000 Janaushadhi Kendras supply quality generic medicines at prices typically 50–80 percent lower than branded drugs. The Free Drugs Service Initiative under the National Health Mission ensures essential medicines recommended under Indian Public Health Standards are available free of charge at public health facilities, from primary health centres to district hospitals.

Additionally, the AMRIT (Affordable Medicines and Reliable Implants for Treatment) initiative offers medicines for cancer, cardiovascular diseases and other conditions at discounts of up to 50 percent through dedicated AMRIT pharmacies in hospitals.

Financial support is also available under the Rashtriya Arogya Nidhi and the Health Minister’s Discretionary Grant, providing assistance to below-poverty-line families for life-threatening illnesses such as cancer.

These coordinated measures reflect the government’s continued commitment to reducing healthcare expenses and expanding access to essential medicines and treatments nationwide.

More news about: regulation | Published by Darshana | December - 11 - 2025

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