The Department of Pharmaceuticals (DoP), on August 7, 2026, outlined the Government's framework for the fixation and regulation of drug prices under the Drugs (Prices Control) Order, 2013 (DPCO, 2013). The Department stated that the National Pharmaceutical Pricing Authority (NPPA) fixes ceiling prices of scheduled formulations and retail prices of new drugs, while manufacturers of non-scheduled formulations are not permitted to increase the maximum retail price (MRP) by more than 10% during the preceding 12 months. Draft price calculation sheets are published for stakeholder comments before finalisation to ensure transparency in the price fixation process.
The Department further highlighted that NPPA monitors compliance with DPCO, 2013 and takes action against overcharging and other violations based on reports from State authorities, market monitoring, inspections and public complaints. It also reiterated that manufacturers are required to print the MRP on drug labels and no formulation may be sold above the notified or printed price. The Department also emphasized the implementation of the Uniform Code for Pharmaceutical Marketing Practices (UCPMP), 2024, which prohibits gifts and monetary benefits to doctors, mandates disclosure and self-declaration by pharmaceutical companies, and provides for audits and penalties in cases of non-compliance.
The Government also reiterated various initiatives to improve access to affordable medicines, including the Pradhan Mantri Bhartiya Janaushadhi Pariyojana, Ayushman Bharat–PMJAY, the Free Drugs Service Initiative under the National Health Mission, AMRIT Pharmacies, and financial assistance under the Rashtriya Arogya Nidhi and the Health Minister's Discretionary Grant for patients suffering from life-threatening diseases.
[PIB Release ID: 2295930]
