The Indian government has implemented several drug price control measures, including the Drug Price Control Order (DPCO) and the National Pharmaceutical Pricing Authority (NPPA). The DPCO regulates the prices of essential medicines listed in the National List of Essential Medicines (NLEM), while the NPPA monitors and enforces drug price control measures. The DPCO has been revised several times, with the latest revision in 2013, which increased the number of medicines under price control from 74 to 348.
While drug price control measures aim to make medicines affordable and accessible to the public, they have also raised concerns among the pharmaceutical industry regarding their impact on innovation and investment. The industry argues that price control measures limit their ability to invest in research and development and develop new medicines. They also argue that price control measures discourage foreign investment and hinder the growth of the pharmaceutical industry.
However, proponents of drug price control argue that it is necessary to ensure affordable healthcare for all and prevent the exploitation of patients by pharmaceutical companies. They also argue that drug price control measures have not hindered the growth of the pharmaceutical industry in other countries, such as Brazil and China.
The balancing act for the Indian government is to ensure that drug price control measures do not stifle innovation and investment in the pharmaceutical industry while ensuring that essential medicines are available and affordable to the public. The government has taken several steps to address this issue, including providing tax incentives and other benefits to encourage investment in research and development and promoting the use of generic medicines.
In conclusion, drug price control is a balancing act for the Indian government that requires a delicate balance between ensuring affordability and promoting innovation and investment in the pharmaceutical industry. While drug price control measures have been successful in making essential medicines available and affordable to the public, they have also raised concerns regarding their impact on innovation and investment. The government needs to continue to take steps to address these concerns and ensure that drug price control measures do not hinder the growth of the pharmaceutical industry.