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NPPA Fixes Ceiling Prices for 900+ Formulations, Caps Retail Prices for 3,200+ Drugs to Regulate Drug Prices and Improve Affordability

According to official estimates, the implementation of revised price caps under the National List of Essential Medicines (NLEM) 2022 has resulted in an average cost reduction of 17 per cent.

• By Pooja Chaturvedi Sah
• New Delhi
• Mar 20, 2025

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In a decisive move to ensure essential medicines remain within the financial reach of millions, the National Pharmaceutical Pricing Authority (NPPA), operating under the Department of Pharmaceuticals (DoP), has established ceiling prices for 928 scheduled formulations and determined retail prices for over 3,200 new drugs. This regulatory intervention is part of a broader effort to curb excessive pricing and make critical medicines more affordable for consumers across India.

Patients to Save Rs 3,788 Crore Annually Following Drug Price Reduction

According to official estimates, the implementation of revised price caps under the National List of Essential Medicines (NLEM) 2022 has resulted in an average cost reduction of 17 per cent. This initiative is expected to translate into a significant financial benefit for patients, with projected annual savings reaching Rs 3,788 crore. Experts say this move is particularly beneficial for low-income groups and individuals relying on essential medications for chronic illnesses.

Pradhan Mantri Bhartiya Janaushadhi Pariyojana: Expanding Access to Affordable Drugs

The government has also intensified efforts to promote the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), an initiative designed to distribute high-quality generic medicines at reduced prices through Jan Aushadhi Kendras. Under this scheme, prices of essential medicines are slashed by 50 to 80 per cent compared to their market counterparts, significantly easing the financial strain on patients requiring long-term treatments.

Additionally, the Affordable Medicines and Reliable Implants for Treatment (AMRIT) scheme plays a crucial role in making medicines for critical ailments such as cancer and cardiovascular diseases more accessible. Select hospital pharmacies provide these medicines at discounts of up to 50 per cent, ensuring affordability for those in need of long-term therapies.

Free Drugs Service Initiative: Enhancing Access to Essential Medicines in Public Healthcare

To complement these affordability measures, the government has launched the Free Drugs Service Initiative to ensure essential medications are available across public healthcare facilities. This initiative aims to reduce out-of-pocket expenditure for patients seeking medical care at government hospitals. Under the programme, financial assistance is extended to states and Union Territories to procure and distribute drugs at different tiers of the healthcare system:

106 essential medicines at sub-health centres

172 medicines at primary health centres

300 medicines at community health centres

318 medicines at sub-district health facilities

381 medicines at district hospitals

This tiered approach ensures that critical medications are available at all levels of public healthcare infrastructure, particularly benefiting rural and underprivileged populations.

Pharmaceutical Product Basket to Expand by March 31

Currently, the PMBJP initiative covers 2,047 medicines and 300 surgicals, medical consumables, and devices. With plans to expand the product range, the Department of Pharmaceuticals has set a target to increase coverage to 2,100 medicines and 310 surgicals, medical consumables, and devices by the end of March. This expansion is expected to further bolster access to affordable healthcare products, especially for patients with chronic and life-threatening conditions.

Recent Price Revisions: Major Relief for Patients with Chronic Diseases

As part of its pricing regulation efforts, the NPPA recently fixed retail prices for 53 drug formulations, including medicines used to treat Type-2 diabetes, high cholesterol, bacterial infections, and chronic pain. These price revisions were finalized during the NPPA’s 130th meeting on February 25. The decision is expected to bring relief to millions of patients who rely on these drugs for their daily health needs.