No Life-Saving Drug Category In India, Govt Clarifies as 930 Medicines Remain Under Price Control
NSQ Drugs
New Delhi: The Central Government has clarified in Parliament that there is no official categorisation of medicines as "life-saving drugs" in India. However, a robust system is in place to ensure the availability and affordability of essential medicines, including the fixing of ceiling prices for 930 scheduled formulations and various other pricing interventions that have led to significant savings for patients.
The clarification came in a written reply by Minister of State for Chemicals and Fertilizers, Anupriya Patel, in response to a question raised by Member of Parliament Murasoli S during a recent Lok Sabha session.
“There is no categorisation of drugs as life-saving drugs. However, the Standing National Committee on Medicines, 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 the National List of Essential Medicines (NLEM),” Patel stated.
She added, “Based on the said recommendations, the Ministry of Health and Family Welfare publishes NLEM, which is notified as Schedule-I to the Drugs (Prices Control) Order, 2013 (‘DPCO, 2013’).”
930 Formulations Under Ceiling Prices, Rs 3,788 Cr Annual Savings Post NLEM 2022
In response to the query on whether the government has considered reducing the prices of life-saving drugs, Patel outlined the efforts taken under DPCO, 2013. She informed the House:
“As on date, the ceiling prices have been fixed for 930 scheduled formulations by the National Pharmaceutical Pricing Authority (NPPA). All manufacturers, importers and marketers of scheduled medicines are required to sell their products within the ceiling price (plus applicable local taxes).”
She added that the average price reduction due to fixation or re-fixation of prices under NLEM, 2022 was about 17%, which has resulted in estimated annual savings of approximately Rs 3,788 crore to patients. Additionally, she recalled that:
“In February 2017, the ceiling prices of coronary stents were also fixed, resulting in estimated annual savings of about Rs 11,600 crore to patients.”
Patel also stated that NPPA has fixed the retail prices of 3,482 ‘new drugs’ – i.e., 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. These prices are also regulated under DPCO, 2013.
Price Controls on Non-Scheduled Drugs and Medical Devices
For non-scheduled medicines and medical devices, the Minister listed several interventions made by NPPA in public interest:
“In respect of non-scheduled medicines, the following measures are in place under DPCO, 2013 to reduce prices:
(i) Manufacturers are required to not increase the maximum retail price (MRP) of drugs launched by them by more than 10% during the preceding 12 months.”
Further, Patel detailed the specific market interventions and their impact:
“NPPA has fixed the prices of a number of non-scheduled medicines, in public interest, as follows:
(i) MRP of 22 diabetic and 84 cardiovascular non-scheduled medicines has been capped, resulting in estimated annual savings of about Rs 350 crore to patients.
(ii) Trade margin of 42 non-scheduled anti-cancer medicines have been capped, resulting in reduction in prices of about 526 brands of medicines by an average of about 50%, resulting in estimated annual savings of about Rs 984 crore to patients.
(iii) Ceiling prices of orthopaedic knee implants have been fixed, resulting in estimated annual savings of about Rs 1,500 crore to patients.
(iv) The trade margins of oxygen concentrators, pulse oximeter, blood pressure monitoring machine, nebuliser, digital thermometer and glucometer were also capped in June/July 2021, resulting in estimated annual savings of about Rs 1,000 crore to consumers.”
Patel also added that “the details of prices fixed by NPPA is available on its website (nppaindia.nic.in).”
Multiple Government Initiatives to Improve Access and Affordability
Beyond price caps, the Minister elaborated on government schemes designed to improve access to affordable medicines:
Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP):
“The Government has launched the Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme with the objective of making quality generic medicines available at affordable prices to all. Under the scheme, dedicated outlets known as Jan Aushadhi Kendras (JAKs) have been opened to provide quality generic medicines at prices that are typically 50% to 80% cheaper than leading branded medicines in the market.”
She added, “16,912 JAKs have been opened across the country till 30.6.2025. 2,110 types of medicines and 315 surgicals, medical consumables and devices are covered under the product basket of the scheme… Janaushadhi medicines with MRP worth Rs 7,700 crore have been sold till date, resulting in savings of about Rs 38,000 crore to citizens.”
Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY):
“Under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, health assurance/insurance cover of Rs 5 lakh per family per year is provided for secondary or tertiary care hospitalisation. Over 41 crore persons have been issued PMJAY cards and coverage under the scheme includes medicines.”
Free Drugs Service Initiative (NHM):
“Under the Free Drugs Service Initiative of the National Health Mission, essential drugs are provided free of cost in public health facilities.”
Affordable Medicines and Reliable Implants for Treatment (AMRIT):
“Affordable medicines are provided for the treatment of cancer, cardiovascular and other diseases, implants, surgical disposables and other consumables, etc., at a significant discount of up to 50% on market rates through AMRIT Pharmacy stores.”
Financial Assistance for Poor Patients:
“Financial assistance is provided to poor patients belonging to families living below the poverty line, who suffer from major life-threatening diseases including cancer, under the umbrella scheme of Rashtriya Arogya Nidhi and the Health Minister’s Discretionary Grant.”
