PHARMACEUTICAL PRICING AUTHORITY
DEPARTMENT OF PHARMACEUTICALS
MINISTRY OF CHEMICALS & FERTILIZERS
GOVT. OF INDIA
JAI SINGH ROAD
TEL. : 011-23746639, FAX : 23746652
Message from Chairman
National Pharmaceutical Pricing Authority (NPPA), has been
established through a Government of India Resolution on August 29,
1997, and is responsible for the implementation of the National
Pharmaceutical Pricing Policy, 2012 and the New Drugs (Prices)
Control Order (DPCO), 2013.
an independent regulator of drug price in the country, the NPPA is
currently guided by the DPCO 2013, which provides for a market based
pricing mechanism as opposed a cost based pricing mechanism that was
prevalent under DPCO 1995. Apart
from price fixation of scheduled drugs, which consists of 348
medicines falling under 27 therapeutic groups included in the
National List of Essential of Medicines (NLEM) 2011, the NPPA also
monitors the price of non-scheduled drug formulations.
In total, 628 scheduled formulations are under direct price
control, which covers around 16% of the domestic market (moving
annual turnover between June 2013-May, 2014), which is estimated at
around Rs.82,000 crore
as per IMS health database.
a view to carrying out its functions in a holistic manner, the NPPA
maintains close coordination with the Ministries concerned of the
Central Government, State Governments, industry associations,
consumers and other related organisations.
Drug price control, which is prevalent in one form or the
other throughout the world, assumes special importance, as it
directly impacts the quality of public health.
The primary aim of the NPPA is to ensure adequate
availability of essential and life saving drugs at affordable prices
and in doing so it carefully balances the interests of both the
producers and the consumers.
Indian drug industry has registered spectacular
growth over the last two decades and currently occupies the 3rd
position in the world in terms of volume and 10th in
value. So much so that
is often referred to as the ‘Pharmacy of the Developing World’.
The pharmaceutical exports are valued at over US $ 14
The Indian Pharmaceutical industry has been a dominant player
in manufacturing generic drugs, but of late it has also made
significant headway in research and development for developing new
and innovative drugs.
Given the inherent advantage of a large and vibrant drug
industry in the country and increasing priority attached to public
health care by both the Centre and State Governments, the NPPA is
confident of making its contribution in ensuring sufficient
availability of essential and life saving medicines at affordable
prices with the cooperation of all concerned, particularly the
New Delhi, the 02nd July, 2014