The Government of India to promote the use of domestically manufactured drugs and medicines: National Pharmaceuticals Pricing Policy, 2012 (NPPP-2012) was notified with the objective to put in place a regulatory framework for pricing of drugs so as to ensure availability of required medicines – “essential medicines” at reasonable prices even while providing sufficient opportunity for innovation and competition to support the growth of the pharma industry thereby meeting the goals of employment and shared economic well-being for all.
In order to promote and to make available quality generic medicines at affordable prices to all through specific outlets, a scheme in the name of ‘Pradhan Mantri Bhartiya Janaushadhi Pariyojana’ (PMBJP) is functioning across the country. The Government is providing financial support for research and development through Drugs & Pharmaceuticals Research Programme (DPRP) run by the Department of Science & Technology. The companies undertaking Research & Development activities are provided income tax benefits.
The Drugs (Prices Control) Order, 2013, Para-32(iii) provides exemptions from price control to a manufacturer producing a new drug involving a new delivery system developed through indigenous Research and Development for a period of five years from the date of its market approval in India.
The government vide its notification dated 28th January 2016 has withdrawn exemption of customs duty on certain categories on Bulk Drugs/APIs to provide level playing field to the domestic manufacturers. The authority said that in order to make generic medicines more accessible, the Department of Pharmaceuticals has requested all the States/Union Territories to explore and enforce the proposal of keeping a separate shelf/rack for generic medicines in every pharmacy in the country.