Ministry of Chemicals and Fertilizers stated in a latest update that average price reduction due to fixation or refixation of prices under National List of Essential Medicines, 2022 resulted in estimated annual savings of approximately Rs 3,788 crore to patients. The Ministry of Health and Family Welfare notifies the National List of Essential Medicines (NLEM), which is incorporated as Schedule-I to the Drugs (Prices Control) Order, 2013 (DPCO, 2013). The National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals (DoP) fixes ceiling prices of these scheduled medicines in accordance with the provisions of DPCO, 2013. All manufacturers and marketers of scheduled medicines are required to sell their products within the ceiling price (plus applicable Goods and Service Tax) fixed by the NPPA. Further, NPPA fixes the retail price of new drugs, as defined in DPCO, 2013. In respect of non-scheduled formulations, manufacturers are required to not increase the Maximum Retail Price of the drugs launched by them by more than 10% during the preceding 12 months. As on 12.3.2025, ceiling prices of 928 scheduled formulations and retail prices of over 3,200 new drugs stood fixed by NPPA. The average price reduction due to fixation or refixation of prices under NLEM, 2022 was about 17%, resulting in estimated annual savings of approximately Rs 3,788 crore to patients.

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