Chanakya IAS Academy Blog


Prime Minister Narendra Modi wants doctors to prescribe generic medicines over branded ones.

Cheap generic vs costly branded: Issues in picking right drug in India

Prime minister Narendra Modi wants doctors to prescribe generic drugs over branded ones.

To achieve this the government will create a legal framework which will make prescribing generic medicines mandatory for doctors.

The Prime minister referred to the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP) which is aimed at providing cheaper drugs to the people.

What are generic drugs:

Generic drugs are copies of branded drugs, which have the same dosage, effects, side effects and risks as the original drug. Thus, their pharmacological effects are exactly the same as their branded counterparts.

Difference between a branded and a generic drug:

  • To recover R&D cost, companies acquire patent for a drug.
  • These drugs are sold with brand names and are priced on the higher side
  • Once the patent expires manufacturers can duplicate them
  • Since the manufacturing of generic drugs do not involve extensive clinical trials, the cost of developing these drugs is less

Initiatives that will increase prescription of generic drugs:

The Medical council of India had earlier notified that,

  • Every physician should mention the generic names of drugs (legibly and preferably in capital letters) on the prescription
  • There should be rational prescription and use of drugs

Pradhan Mantri Bharatiya Janaushadhi Pariyojana(PMBJP)

  • A countrywide campaign to ensure availability of generic drugs
  • PMBJ Kendra’s are functional in 28 states
  • Private manufacturing companies certified by WHO, supply generic drugs which are specially manufactured and packed for PMBJP

Drug price control in India:

  • • Prices of drugs that are part of the National List of Essential Medicines(NLEM) are governed by the provisions of the Drugs (Prices Control) Order, 2013. The provision applies uniformly for both generic and branded medicines
  • • In case of non-scheduled drugs (that are not part of DPCO 2013), manufacturers are free to fix the launch price of the drug. But they cannot increase the MRP by more than 10% of the MRP of the preceding 12 months
Read 1163 times Last modified on Saturday, 22 April 2017 15:11

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