How Pradhan Mantri Janaushadhi Pariyojana is affecting the Healthcare Industry

Healthcare has become one of India's largest sectors both in terms of revenue and employment. The Indian healthcare market, which is worth around US$ 100 billion, will likely grow at a CAGR of 23 percent to US$ 280 billion by 2020.

The Government of India has taken various initiatives to promote Indian healthcare industry. Making quality medicines available at affordable prices for all, especially the poor and disadvantaged through exclusive outlets ‘Pradhan Mantri Bhartiya Janaushadhi Kendra’, so as to redefine the unit cost of treatment per person.

What is Pradhan Mantri Janaushadhi Yojana?

Over the years India has developed a strong capability in producing quality branded and generic medicines in most of the therapeutic categories accounting to more than Rs 1, 19,000 crores industry in recent years.

Although these medicines are reasonably priced, as compared to the prices of their equivalent medicines in most other countries, yet a large population of poor people in the country finds it difficult to afford.

Narendra Modi, PM of India, says, “Due to illness, the financial burden is immense for the poor and the middle class. Our constant endeavor is to ensure affordable healthcare to every Indian.”

He says, “Access to medicines is a big concern for the poor. To ensure the poor get access to affordable medicines, The Pradhan Mantri Bhartiya Janaushadhi Pariyojna has been launched.”  

Accordingly, 'ensuring availability of quality medicines at affordable prices to all', has been a key objective of the Government.

Pon Radhakrishnan, Union Minister of State for Finance and Shipping, Government of India, says, “By opening more than 3600 Jan Aushadhi Kendras under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana, the goal is to turn the dream of affordable healthcare a reality for the people of India.”

Important Steps taken under this scheme:

- Price control of Scheduled Drugs through the National Pharmaceutical pricing authority (NPPA) and Price regulation of Non-Scheduled Drugs. 
-A uniform VAT of 4% on medicines in almost all the states in the country and reduction in Excise duty from 16% to 4%.

-1054 essential medicines brought under price control regime giving customer total benefit of more than Rs. 10,000 Cr.

-Affordable Medicines with Pradhan Mantri Bhartiya Janaushadhi Kendras. More than 300 stores resulting in savings of more than 50%

-Prices of Cardiac stents & Knee implants reduced by 50-70%

-AMRIT Pharmacies provide drugs for cancer and cardiovascular diseases at a discount of 60% to 90%

Jagat Prakash Nadda, Union Minister of Health and Family Welfare, Government of India, says, “To make Healthcare more accessible, more than 90 new medical colleges have been set up across India, which led to increase in 15000 seats. This enables more opportunities, more employment, and better health services.”

Mansukh Mandaviya, Union Minister for Road Transport & Highways, Shipping, Chemical & Fertilizers, General Secretary of Gujarat State, BJP says, “For heart treatments, a common man had to sell out or mortgage his home, shop, etc. but now the scenario has changed. The price of heart stent has been reduced from  ?1.5 lacs to  ?2 lacs to below ?30,000.”

Future of Janaushadhi Yojana

The endeavour of Bureau of Pharma PSUs of India (BPPI) is to make Pradhan Mantri Jan Aushadhi Kendras all the commonly used medicines covering all the therapeutic groups. In the coming years, Pradhan Mantri Janaushadhi Pariyojana shall provide the complete spectrum of healthcare products and services, starting from making available all the generic medicines covering all the therapeutic groups.