Indian Drug Prices Do Not Increase in 2024

While Indian drug prices had grown considerably in 2023 (up 12%), in 2022 (up almost 11%) and in 2021 (up almost 11%), drug prices remained flat in 2024 with an increase of only 0.0005%. This tiny price increase is for the National List of Essential Medicines (NLEM) effective on April 1, 2024 and will affect over 900 products including drugs for cardio, antibiotics, Parkinson’s, and dementia, among others. However, this price increase is not applicable for patented or fixed dose combination varieties.

Such price controls will affect both domestic and international drug companies. The Indian Department of Pharmaceuticals also will soon promulgate new plans to further curb drug pricing. Obviously, this is not helpful to Indian drug makers and foreign drug makers who are experiencing higher costs due to increases in materials and labor. Patient access is limited for high-priced drugs, and hence India must rely on generics, which account for about 80% of the market. Price controls normally also limit the development of more expensive, innovative drugs and lead to a limited number of private patients paying out-of-pocket.