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Affordable Medicines at Janaushadhi Ensure Quality Healthcare without Financial Strain

March 05, 2026 5 min read Polity & Governance Social Issues GS2
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What Happened

  • The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) continues to expand its network of dedicated outlets (Jan Aushadhi Kendras) offering quality generic medicines at prices 50-80% lower than branded equivalents.
  • As of June 2025, 16,912 Jan Aushadhi Kendras have been opened across the country, with the government targeting 20,000 kendras by 31 March 2026.
  • The scheme's product basket includes 2,110 medicines and 315 surgical/medical consumables and devices, covering major therapeutic groups including cardiovascular, anti-cancer, anti-diabetic, anti-infective, and anti-allergic medicines.
  • The scheme has resulted in cumulative savings of approximately Rs. 38,000 crore to citizens compared to branded medicine prices.
  • All medicines under PMBJP are procured from WHO-GMP certified suppliers and tested at NABL-accredited laboratories before dispatch.

Static Topic Bridges

Drug Price Regulation in India: DPCO and NPPA

India regulates drug prices through the Drug Price Control Order (DPCO), 2013, issued under the Essential Commodities Act, 1955. The National Pharmaceutical Pricing Authority (NPPA), constituted in 1997 under the Department of Pharmaceuticals (Ministry of Chemicals and Fertilizers), is the independent regulator that fixes and monitors drug prices.

  • DPCO, 2013: Replaced DPCO, 1995. Regulates prices of drugs listed in the National List of Essential Medicines (NLEM) by fixing ceiling prices. Non-essential drugs can also be regulated if price increases exceed 10% per year.
  • NLEM: A dynamic list prepared by the Ministry of Health and Family Welfare; revised periodically. The current NLEM includes approximately 800 formulations.
  • Ceiling price calculation: Based on simple average of all brands with market share above 1% for each formulation, plus a retail margin of 16%.
  • Annual price adjustment: Ceiling prices are revised annually based on the Wholesale Price Index (WPI). The NPPA's latest revision (March 2026) applied a 0.65% WPI adjustment to 767 formulations, effective 1 April 2026.
  • Para 19 of DPCO, 2013: Allows NPPA to fix prices of non-scheduled drugs in the "public interest" in extraordinary circumstances.
  • Penalties: Manufacturing or selling drugs above ceiling prices can attract up to Rs. 3 lakh fine or imprisonment up to 5 years under the Essential Commodities Act.

Connection to this news: The PMBJP scheme complements the DPCO regulatory framework -- while DPCO controls ceiling prices of essential medicines, PMBJP directly provides generic alternatives at even lower prices through a parallel retail network.

Generic Medicines vs. Branded Medicines: Policy Framework

Generic medicines contain the same active pharmaceutical ingredient, in the same dosage and form, as the branded original. India is the world's largest provider of generic medicines, supplying approximately 20% of the global generic medicine supply. The cost difference between generics and branded equivalents can range from 50% to over 90%.

  • Legal framework: The Drugs and Cosmetics Act, 1940, and Rules, 1945, govern drug manufacturing, quality, and sale in India.
  • Bioequivalence: Generic medicines must demonstrate bioequivalence with the reference brand -- same rate and extent of absorption in the body.
  • WHO-GMP certification: Mandatory for PMBJP suppliers. India had approximately 10,500 WHO-GMP certified manufacturing units as of 2024.
  • Quality testing: NABL (National Accreditation Board for Testing and Calibration Laboratories) accreditation is required for testing laboratories under PMBJP.
  • Indian Pharmacopoeia Commission (IPC): Sets standards for quality of drugs manufactured and marketed in India.
  • Jan Aushadhi Suvidha: A sanitary napkin sold at Re. 1 per pad through PMBJP kendras, addressing menstrual hygiene affordability.

Connection to this news: The PMBJP's operational model demonstrates how government intervention in retail distribution can address the affordability gap that persists even after DPCO price controls, because many non-scheduled drugs remain expensive in their branded form.

Right to Health and Directive Principles

Access to affordable healthcare and medicines is linked to the Right to Life under Article 21 of the Constitution. The Supreme Court has progressively expanded Article 21 to include the right to health. The Directive Principles of State Policy (DPSP) under Part IV also impose obligations on the state to ensure public health.

  • Article 21: Right to Life includes right to health -- established in Paschim Banga Khet Mazdoor Samity v. State of West Bengal (1996), where the SC held that the state has a constitutional obligation to provide adequate medical facilities.
  • Article 39(e): DPSP -- the state shall ensure that health and strength of workers are not abused and citizens are not forced by economic necessity to enter avocations unsuited to their age or strength.
  • Article 47: DPSP -- the state shall regard raising the level of nutrition and standard of living and improvement of public health as among its primary duties.
  • Article 42: DPSP -- the state shall make provision for securing just and humane conditions of work and for maternity relief.
  • National Health Policy, 2017: Aims to increase public health expenditure to 2.5% of GDP (from approximately 1.28% in 2017-18) and achieve Universal Health Coverage.
  • Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (PM-JAY): Health insurance coverage of Rs. 5 lakh per family per year for 55 crore beneficiaries from poor and vulnerable families.

Connection to this news: The PMBJP scheme operationalises the constitutional mandate under Articles 21, 39(e), and 47 by ensuring that essential medicines are physically and financially accessible to all citizens, particularly those who cannot afford branded medicines.

Key Facts & Data

  • PMBJP: Launched 2008 (as Jan Aushadhi Scheme) by Ministry of Chemicals and Fertilizers.
  • Jan Aushadhi Kendras: 16,912 (as of June 2025); target 20,000 by March 2026.
  • Product basket: 2,110 medicines + 315 surgical/medical items; target 2,200 + 320.
  • Price advantage: 50-80% cheaper than branded equivalents.
  • Cumulative citizen savings: Approximately Rs. 38,000 crore.
  • Quality assurance: WHO-GMP certified suppliers + NABL-accredited testing.
  • DPCO, 2013: Regulates approximately 800 NLEM formulations via ceiling prices.
  • NPPA: Constituted 1997; latest WPI-based price revision effective 1 April 2026 (0.65% adjustment).
  • India: Supplies approximately 20% of global generic medicines.
  • Article 47 (DPSP): State shall regard improvement of public health as a primary duty.
  • PM-JAY: Rs. 5 lakh health insurance per family per year for 55 crore beneficiaries.