The regulation of drug prices in India is guided by the National Pharmaceuticals Pricing Policy (NPPP), 2012, which establishes key principles for price control. These principles include (i) regulation based on the essentiality of drugs, (ii) price regulation applicable only to formulations (medications consumed by patients) rather than bulk drugs or intermediates, and (iii) a market-based pricing approach instead of cost-based pricing. Under this framework, the National Pharmaceutical Pricing Authority (NPPA), operating under the Department of Pharmaceuticals (DoP), determines ceiling prices as per the provisions outlined in the Drugs (Prices Control) Order (DPCO), 2013.
About the Author
