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Government told Rajya Sabha that drug prices are regulated under the Drugs (Prices Control) Order 2013 (DPCO 2013), based on the National Pharmaceuticals Pricing Policy 2012; NPPA has fixed ceiling prices for 935 scheduled formulations (as on 23.07.2026) drawn from the National List of Essential Medicines (NLEM), 2022.
NLEM 2022 lists 388 medicines under 29 therapeutic categories; retail prices of 3,845 new drugs have also been fixed by NPPA till 23.07.2026.
For non-scheduled formulations, manufacturers cannot raise MRP by more than 10% in a preceding 12-month period; NPPA can also fix prices under Para 19 in extraordinary/public-interest circumstances.
The government listed complementary access measures — PMBJP's 20,000+ Janaushadhi Kendras, AB-PMJAY's ₹5 lakh cover, free NHM medicines, and AMRIT Pharmacy discounts — to keep medicines affordable.
Regulate prices of essential and new drugs to keep medicines affordable
Key: Ceiling prices for NLEM-listed (Schedule-I) drugs revised annually via WPI; Para 19 allows price-fixing in extraordinary/public-interest cases; non-scheduled MRP hikes capped at 10%/year
Affordable generic medicines via dedicated Kendras
Key: 20,000+ Kendras nationwide; medicines 50-80% cheaper than branded
Health insurance cover for hospitalisation, including medicines
Key: ₹5 lakh/family/year cover for secondary/tertiary care
Discounted medicines for cancer, cardiovascular and other diseases
Key: Up to 50% discount via AMRIT Pharmacy stores set up in hospitals
Financial assistance for poor patients with life-threatening diseases
Key: Umbrella schemes providing one-time aid for BPL patients
Fixes/revises ceiling and retail prices of scheduled and new drugs; attached office of the Department of Pharmaceuticals
Policy basis on which DPCO 2013's price-control mechanism rests
NPPA's 'ceiling price' is the maximum price a manufacturer may charge for a scheduled (NLEM-listed) drug, revised annually using the Wholesale Price Index. The Maximum Retail Price (MRP) printed on the pack must stay at or below this ceiling plus permitted taxes — distinct from the separate 10%-per-year cap that applies only to non-scheduled formulations
Simple Analogy: The ceiling price is a cap set by the regulator; the MRP is what's actually printed on the box, which for scheduled drugs must stay at or under that cap
GS Paper 2 > Governance > Health Sector Regulation
Recurring — NPPA figures are updated in most Parliament sessions
Drugs (Prices Control) Order, 2013 — the legal instrument regulating drug prices in India
National Pharmaceutical Pricing Authority — fixes ceiling/retail prices of drugs