10 Facts About Prescription Drug Prices India

2. Essential medicines and price ceilings

India maintains a list of essential medicines for which price controls can apply, and NPPA commonly uses this list to target affordability. Price ceilings are typically set per formulation, which means the regulator looks at specific dosages and pack sizes when capping prices. The goal is simple: keep the most commonly used and life-saving medicines within reach for the largest number of people. This approach affects retail prices directly by limiting how much manufacturers and sellers can charge. For shoppers at a neighborhood pharmacy, it translates into predictable costs for basic antibiotics, common chronic-disease drugs, or standard injections. The ceiling mechanism also influences how companies price competitive generics and branded versions. While price caps help many, they can create tensions when manufacturing costs rise — for example, if active ingredient prices jump, producers feel squeezed. Still, the ceiling system remains an important tool to preserve access for essential treatments across India.