10 Facts About Prescription Drug Prices India

7. Patent rules and their pricing effect

Patents shape which medicines can be made generically and when generic competition can begin. India’s patent system balances incentives for innovation with public-health considerations. Where patent protection is active, fewer manufacturers can produce a medicine, which tends to keep prices higher. After patents expire, multiple companies can enter the market and drive prices down through competition. India has also used mechanisms like compulsory licensing in exceptional public-health circumstances, allowing generic production despite patents to improve access. These legal pathways influence both the availability and price trajectory of drugs. For patients and policy watchers, patent timelines are a key reason why certain new drugs remain expensive for years while older treatments become affordable as generics appear.