935 Essential Drug Prices Capped, 3702 New Drugs Under Price Control: Govt Reinforces Affordable Medicines Framework

NPPA fixes ceiling prices for formulations listed under Schedule I of the DPCO, mandating all manufacturers, marketers, and importers to sell these medicines within the prescribed limits.

New Delhi: The Union government has strengthened its regulatory framework to ensure affordability of medicines, with price caps currently in place for 935 essential drug formulations and retail prices fixed for 3,702 new drugs, Parliament was informed on Friday.

In a written reply in the Lok Sabha, Anupriya Patel, Minister of State for Chemicals and Fertilizers, said the National Pharmaceutical Pricing Authority (NPPA) regulates drug prices under the Drugs (Prices Control) Order (DPCO), 2013.

NPPA fixes ceiling prices for formulations listed under Schedule I of the DPCO, mandating all manufacturers, marketers, and importers to sell these medicines within the prescribed limits. As of March 18, 2026, ceiling prices for 935 formulations are in effect.

In addition, the authority has fixed retail prices for 3,702 new drugs. For non-scheduled formulations, companies are not permitted to increase the maximum retail price by more than 10 percent over a 12-month period.

The government has also invoked special provisions under Para 19 of DPCO in extraordinary circumstances to safeguard public interest and ensure affordability. These interventions have included capping prices of anti-diabetic and cardiovascular drugs, fixing ceiling prices for coronary stents and knee implants, and rationalising trade margins for anti-cancer medicines—bringing down prices across 526 brands.

During the COVID-19 pandemic, prices of essential medical devices such as oxygen concentrators, pulse oximeters, blood pressure monitors, nebulizers, digital thermometers, and glucometers were also regulated under a trade margin rationalisation approach.

NPPA continues to monitor drug prices and take action against overcharging as per DPCO provisions. Detailed price notifications are available on the authority’s official website.

On the intellectual property front, the government said the Patents Act, 1970 incorporates safeguards to balance innovation with public access. Patent applications undergo a two-stage examination process, while pre-grant and post-grant opposition mechanisms enable stakeholders to challenge patents that do not meet statutory criteria.

The law also restricts evergreening of patents under Section 3(d), ensuring that minor modifications to existing drugs do not extend monopoly without enhanced therapeutic efficacy.

The government further clarified that compulsory licensing provisions are designed to be used only in exceptional circumstances, such as when medicines are not available at affordable prices or fail to meet public demand. Licences are granted following due process, with provisions for reasonable compensation to patent holders.

The statement underscores the government’s dual approach of enforcing price controls while maintaining a balanced patent regime to ensure access to affordable medicines without discouraging innovation.