New Delhi: The Indian government continues to regulate drug prices under the National Pharmaceuticals Pricing Policy (NPPP), 2012, ensuring affordability and accessibility of essential medicines. Union Minister of State for Chemicals and Fertilizers, Anupriya Patel, informed the Rajya Sabha today that drug price regulation is based on three key principles: essentiality of drugs, regulation of consumer-ready formulations rather than raw materials, and a market-based pricing approach instead of cost-based pricing.
The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals (DoP), enforces these regulations through the Drugs (Prices Control) Order (DPCO), 2013. NPPA determines ceiling prices for medicines to prevent overpricing while maintaining fair industry practices. To enhance transparency and accuracy in pricing, NPPA operates the Integrated Pharmaceutical Database Management System (IPDMS 2.0), a digital platform that allows for real-time monitoring of drug prices. This system enables manufacturers to submit reports online and ensures compliance with pricing regulations.
Under the DPCO 2013, all drug manufacturers are required to publish price lists using Form-V for formulations or Form-VI for medical devices and distribute them to dealers, State Drugs Controllers, and the government. Retailers and distributors must prominently display these price lists at their business premises to ensure transparency in drug pricing.
To empower consumers, NPPA has developed the Pharma Sahi Daam (PSD) mobile application, available on both Google Play Store for Android users and Apple App Store for iOS users. The app allows users to search for medicines by brand name or composition, displaying their ceiling price and maximum retail price (MRP). This feature helps consumers verify drug pricing and avoid overcharging. Additionally, all drug price notifications and revisions are published on the NPPA website (www.nppaindia.nic.in). Before finalizing price revisions, a draft version of price calculation sheets is uploaded for 10 working days to invite feedback from stakeholders.
Anupriya Patel emphasized that no changes are currently under consideration regarding the existing price regulation framework. The government remains committed to ensuring transparency, affordability, and accessibility in drug pricing through digital platforms, public disclosures, and stakeholder engagement.
