Affordable medicines: Jan Aushadhi, AMRIT schemes cut prices by up to 80%
Synopsis
Key Takeaways
The government is actively enabling access to affordable essential medicines through multiple schemes, Minister of State for Chemicals and Fertilisers Anupriya Patel informed Lok Sabha on 7 August in a written reply. Beyond price regulation, initiatives such as the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) and the AMRIT scheme are providing medicines at significantly reduced rates to citizens across India.
Jan Aushadhi Kendras: Up to 80% Cheaper than Branded Drugs
Under the PMBJP, quality generic medicines are dispensed through Jan Aushadhi Kendras (JAKs) at prices typically 50–80% lower than equivalent branded medicines. The scheme directly targets affordability at the point of purchase, offering a wide range of essential drugs to ordinary consumers who might otherwise rely on costlier branded alternatives.
AMRIT Stores and Free Drug Initiative
The AMRIT (Affordable Medicines and Reliable Implants for Treatment) initiative, run by the Department of Health and Family Welfare, provides medicines for cancer, cardiovascular, and other serious diseases — alongside implants, surgical disposables, and consumables — at an average discount of up to 50% on market rates. These are dispensed through AMRIT Pharmacy stores established in hospitals and healthcare institutions across the country.
Separately, under the Free Drugs Service Initiative of the National Health Mission (NHM), essential medicines recommended under the Indian Public Health Standards (IPHS) are made available free of charge at public health facilities — from Primary Health Centres (PHCs) to district hospitals nationwide.
How Drug Manufacturing and Sales Are Regulated
The manufacture, sale, and distribution of drugs is governed by the Drugs and Cosmetics Act, 1940 and the associated Rules, 1945, through a licensing and inspection framework. Licences are granted by State Licensing Authorities (SLAs) appointed by respective state governments.
According to the minister, SLAs conduct periodic inspections — or risk-based checks — of licensed premises to verify compliance. 'State Licensing Authorities carry out periodic inspections or as per risk-based approach from time to time of the licensed premises for verification of compliance with the provisions of the Act and rules thereunder. Actions such as suspension and cancellation of licences, prosecutions in the court of law are taken against the erring firms by the State Licensing Authorities,' Patel stated in her written reply.
Price Regulation Through DPCO 2013
Drug prices are controlled under the Drugs (Prices Control) Order 2013 (DPCO, 2013). Ceiling prices for scheduled medicines are revised annually, based on the Wholesale Price Index (WPI) for all commodities from the preceding calendar year. These revised prices are notified by the government on 1 April each year, ensuring a structured annual update to keep pricing in line with market conditions.
Together, these measures represent a multi-layered policy architecture — combining price caps, subsidised generic outlets, hospital-based discount pharmacies, and free public-facility dispensing — to address medicine affordability at different levels of the healthcare system. How effectively these schemes reach the most vulnerable populations, particularly in rural and remote areas, will remain the key measure of their success.