NPPA Allows 1.74% Price Hike for Essential Drugs, No Govt Approval Needed
New Delhi: The National Pharmaceutical Pricing Authority (NPPA) has permitted manufacturers to increase the Maximum Retail Price (MRP) of scheduled formulations by 1.74028% for the calendar year 2024, based on the Wholesale Price Index (WPI) data for the preceding year 2023.
The price hike, though marginal, comes in the wake of inflationary pressures on pharmaceutical manufacturing, particularly due to increasing input costs. While it provides some breathing space for manufacturers, concerns remain regarding its impact on affordability of essential medicines.
Also Read: With Rs 3,788 Crore in Savings, Govt Eyes Adding More Drugs Under NLEM
According to an Office Memorandum (OM) issued by NPPA on March 26, 2025, the decision follows the provisions of Paragraph 16(2) of the Drug Price Control Order (DPCO), 2013, which allows manufacturers to adjust prices of essential medicines listed under Schedule-I of the DPCO, 2013. The OM states;
"Based on the Wholesale Price Index (WPI) data provided by the office of the Economic Advisor, Department of Industry and Internal Trade, Ministry of Commerce and Industry, the annual change in WPI works out as (+)1.74028% during the calendar year 2024 over the corresponding period in 2023."
Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.
NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.