The Government on Friday said that the prices of life-saving drugs in India are regulated under the Drugs (Prices Control) Order (DPCO), 2013, to ensure affordability and accessibility for the public.
In a written reply in the Lok Sabha, Minister of State for Chemicals and Fertilizers Anupriya Patel stated that the National Pharmaceutical Pricing Authority (NPPA) fixes ceiling prices of medicines listed under Schedule-I of the DPCO, which is based on the National List of Essential Medicines. The authority also determines retail prices for new drugs and ensures that manufacturers of non-scheduled formulations do not increase the maximum retail price by more than 10 per cent annually.
She added that NPPA can intervene in extraordinary circumstances in public interest to regulate drug prices, while instances of overcharging are addressed as per provisions of the DPCO.
Patel clarified that no fixed criteria currently exist for maintaining buffer stocks of essential medicines. However, NPPA continuously monitors the availability of drugs and takes corrective action when shortages are reported through various channels, including state drug controllers and public grievance platforms.
Highlighting broader efforts to improve access to affordable healthcare, the minister outlined several initiatives. Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana, Janaushadhi Kendras provide quality generic medicines at prices 50 to 80 per cent lower than branded alternatives. More than 18,646 Janaushadhi Kendras are operational across the country as of February 28, 2026.
Additionally, the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) offers health insurance coverage up to ₹5 lakh annually to eligible families for secondary and tertiary care, including the cost of medicines.
The Minister said that the government is also ensuring free access to essential drugs at public health facilities under the National Health Mission’s Free Drugs Service Initiative. Other measures include the AMRIT (Affordable Medicines and Reliable Implants for Treatment) initiative, which provides medicines and medical consumables at discounted rates through dedicated pharmacy outlets in hospitals.
Financial assistance is also extended to economically weaker sections through schemes such as the Rashtriya Arogya Nidhi and the Health Minister’s Discretionary Grant, particularly for treatment of life-threatening diseases.
The minister noted that the review of the DPCO, 2013 is an ongoing process, undertaken periodically to strengthen enforcement and ensure that essential medicines remain available to the public at affordable prices.
