The Ministry of Chemicals and Fertilizers (MoCF) on August 07, 2026, issued statement on Fixation and Regulation of Prices of Drugs.
Drug prices in India are regulated under the Drugs (Prices Control) Order 2013 (DPCO), which stems from the National Pharmaceutical Pricing Policy, 2012. The National Pharmaceutical Pricing Authority (NPPA) sets ceiling prices for scheduled formulations based on market data, while non-scheduled drug manufacturers cannot raise MRP by more than 10% annually. NPPA maintains transparency by publishing draft price calculations for 10 days of public comment before finalizing prices, and monitors compliance through state-level units, market samples, and complaint channels. Manufacturers must print MRP on packaging, and no one can sell above the listed/printed price.
Marketing Practices Regulation
The Uniform Code of Pharmaceuticals Marketing Practices 2024 (effective March 12, 2024) governs interactions between pharma companies and doctors, banning gifts and monetary benefits, requiring self-declarations and expenditure disclosures, and allowing audits. It establishes a two-tier complaint process and penalties ranging from reprimands to legal action. Promotional expenses are only tax-deductible if compliant with this code and related medical ethics regulations.
Affordability Initiatives
Several government schemes improve medicine access:
Janaushadhi Pariyojana: 20,000+ stores selling generics 50-80% cheaper
AB-PMJAY: ₹5 lakh/family/year health insurance covering hospitalization and medicines
Free Drugs Service Initiative: Free essential medicines at public health facilities
AMRIT initiative: ~50% discounts on medicines/implants for cancer, cardiac, and other conditions
Rashtriya Arogya Nidhi: Financial aid for BPL patients with life-threatening diseases.
[Release ID: 2295930]
