**Policy Summary: Drug Price Regulation in India**
The Indian government, through the Ministry of Chemicals and Fertilizers and its National Pharmaceutical Pricing Authority (NPPA), regulates drug prices according to the Drugs Prices Control Order (DPCO), 2013. The NPPA fixes ceiling prices for scheduled medicines listed in the First Schedule of the DPCO, 2013, and revises these prices annually based on the Wholesale Price Index. As of July 14, 2025, ceiling prices have been fixed for 930 scheduled formulations, including 131 anticancer, 11 anti-diabetic, and 66 cardiovascular drugs. Retail prices of 3,482 new drugs are also fixed, with 1,924 in the anti-diabetic, anticancer, and cardiovascular categories.
The NPPA also regulates retail prices of new drugs and monitors price increases of non-scheduled drugs. Measures include capping the maximum retail price (MRP) of 22 diabetic and 84 cardiovascular non-scheduled medicines and capping the trade margin of 42 non-scheduled anticancer medicines, leading to price reductions in 526 brands by approximately 50%. Manufacturers are restricted from increasing the MRP of non-scheduled drugs by more than 10% in a 12-month period.
The Standing National Committee on Medicines (SNCM) recommends drugs for inclusion in the National List of Essential Medicines (NLEM), which the Ministry of Health and Family Welfare publishes and notifies as the First Schedule to DPCO, 2013. The SNCM reviews and revises the NLEM periodically.
Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme, 2,110 medicines and 315 surgical, medical consumables and devices are available, covering major therapeutic groups. As of June 30, 2025, 16,912 Jan Aushadhi Kendras (JAKs) have been opened across the country, including 1,432 in Tamil Nadu.
From April 1, 2020, to March 31, 2025, the NPPA initiated 436 cases of overcharging and recovered ₹133.19 crore from the companies concerned. Details of prices fixed by NPPA and overcharging cases are available on the NPPA website: www.nppa.gov.in. The average price reduction due to the fixation or refixation of prices under NLEM 2022 was about 17%, resulting in estimated annual savings of approximately ₹3,788 crore to patients. Capping of MRP of non-scheduled diabetic and cardiovascular medicines has resulted in estimated annual savings of about ₹350 crore to patients, and capping of trade margins of non-scheduled anticancer medicines has resulted in estimated annual savings of about ₹984 crore to patients.
Key Entities Referenced
Drugs Prices Control Order, 2013: Order regulating the prices of drugs in India.
National Pharmaceutical Pricing Authority: Authority responsible for fixing ceiling prices of scheduled medicines and retail prices of new drugs in India.
First Schedule to DPCO, 2013: Specifies scheduled medicines for which NPPA fixes ceiling prices.
National List of Essential Medicines: A list of essential medicines that are considered for price regulation.
Ministry of Health and Family Welfare: The ministry responsible for publishing the National List of Essential Medicines (NLEM).
Pradhan Mantri Bhartiya Janaushadhi Pariyojana: A scheme to make quality generic medicines available at affordable prices.
Tamil Nadu: A state in India where Jan Aushadhi Kendras have been opened.
Pharmaceuticals and Medical Devices Bureau of India: Implementing agency for the Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme.
Ministry of Chemicals and Fertilizers
Prices of drugs in India are regulated as per the
provisions of the Drugs (Prices Control) Order, 2013
(“DPCO, 2013”)
National Pharmaceutical Pricing Authority (NPPA)
fixes ceiling prices of scheduled medicines specified
in the First Schedule to DPCO, 2013; NPPA has
fixed the ceiling prices for 930 scheduled
formulations, including 131 anti-cancer, 11 anti-
diabetic and 66 cardiovascular formulations
Retail prices of 3,482 such new drugs also stand
fixed as on 14.7.2025, of which 1,924 are in the anti-
diabetic, anti-cancer and cardiovascular categories
Posted On: 08 AUG 2025 5:13PM by PIB Delhi
Prices of drugs in India are regulated as per the provisions of the Drugs (Prices Control) Order, 2013
(“DPCO, 2013”). The National Pharmaceutical Pricing Authority (NPPA) fixes ceiling prices of scheduled
medicines specified in the First Schedule to DPCO, 2013. Further, as per the provisions of DPCO, 2013, the
ceiling prices of scheduled medicines are revised annually based on Wholesale Price Index (All commodities)
for the preceding calendar year, on or before the 1st of April of every year. All manufacturers, importers and
marketers of scheduled medicines are required to sell their products within the ceiling price plus applicable
local taxes. NPPA also fixes retail prices of “new drugs”, that is, formulations launched by existing
manufacturers of a medicine listed in NLEM by combining it with another drug, or by changing the strength
or dosage or both of such medicine. Further, DPCO, 2013 also provides for fixation of prices of drugs in
public interest under extraordinary circumstances and monitoring of price increase of non-scheduled drugs.
Accordingly, prices of drugs, particularly drugs for diseases such as cancer, diabetes and cardiovascular
conditions are regulated in the following manner:
i. NPPA has fixed the ceiling prices for 930 scheduled formulations, including 131 anti-cancer, 11 anti-
diabetic and 66 cardiovascular formulations. All manufacturers, importers and marketers of scheduled
medicines are required to sell their products within the ceiling price plus applicable local taxes. The
average price reduction due to fixation or refixation of prices under NLEM, 2022 was about 17%,
resulting in estimated annual savings of approximately ₹3,788 crore to patients.
ii. Retail prices of 3,482 such new drugs also stand fixed as on 14.7.2025, of which 1,924 are in the anti-
diabetic, anti-cancer and cardiovascular categories. The applicant manufacturers and marketing
companies are required to sell these drugs within the said retail price.iii. Besides the above, the maximum retail price (MRP) of 22 diabetic and 84 cardiovascular non-scheduled
medicines has been capped, resulting in estimated annual savings of about ₹350 crore to patients.
iv. Trade margin of 42 non-scheduled anti-cancer medicines have been capped, resulting in reduction in
prices of 526 brands of medicines by an average of about 50%, resulting in estimated annual savings of
about ₹984 crore to patients.
v. For non-scheduled formulations, including for non-scheduled anti-diabetic, anti-cancer and
cardiovascular formulations, manufacturers are required to not increase MRP of drugs launched by them
by more than 10% during the preceding 12 months.
Details of prices fixed by NPPA are available on its website (www.nppa.gov.in).
The Standing National Committee on Medicines (SNCM), consisting of all stakeholders and experts, carefully
evaluates the relative safety, efficacy, availability and affordability of medicines from each therapeutic class,
consults all stakeholders and considers WHO’s Essential Medicines List, drugs used in national health
programmes, Indian Pharmacopoeia, National Formulary, etc., to recommend drugs for inclusion in NLEM.
Based on the said recommendations, the Ministry of Health and Family Welfare publishes NLEM, which is
notified as the First Schedule to DPCO, 2013. SNCM reviews and revises NLEM from time to time to address
the issues of changing disease prevalence, treatment modalities, introduction of newer medicines and
identification of unacceptable risk-benefit profile as well as therapeutic profile of medicine. Drugs under
NLEM are categorised under therapeutic groups and no categorisation of drugs as life-saving drugs is made.
Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme product basket, 2,110
medicines and 315 surgical, medical consumables and devices are available, covering all major
therapeutic groups, such as cardiovascular, anti-cancers, anti-diabetic, anti-infective, anti-allergic
and gastro-intestinal medicines and nutraceuticals. Almost all generic medicines included in NLEM,
except lab reagents and vaccines, are included in the scheme product basket.
To spread awareness about the scheme throughout the country, including in the State of Tamil Nadu, the
Pharmaceuticals and Medical Devices Bureau of India, which is the scheme implementing agency, regularly
undertakes number of activities, including issuance of advertisements in various modes, such as the print
media, radio, television, mobile application, cinema, hoardings, branding of bus queue shelters and buses,
auto wrapping and television screens at Common Service Centres, outreach through social media platforms
and celebration of Jan Aushadhi Diwas on the 7th of March every year.
As on 30.6.2025, 16,912 Jan Aushadhi Kendras (JAKs) have been opened across the country under the
scheme, of which 1,432 JAKs have been opened in the State of Tamil Nadu, including 20 JAKs in Karur
district, 40 in Dindigul district, 71 in Tiruchirappalli district and 32 in Pudukottai district.
During last five years, that is, during the period from 1.4.2020 to 31.3.2025, 436 cases of overcharging have
been initiated by NPPA and an amount of ₹133.19 crore has been recovered from the companies concerned
during the same period. Detailed list of overcharging cases where demand notices have been issued is
available on the website of NPPA (www.nppa.gov.in ).
This information was given by the Union Minister of State for Chemicals and Fertilizers Smt
Anupriya Patel in Lok Sabha in a written reply to a question today.
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MV/GS
(Release ID: 2154217)