Examine the implications of Jan Aushadhi Scheme on domestic pharma industry in India.

 As per the latest National Sample Survey Office survey on healthcare, in 2014, medicines emerged as a principal component of total health expenses—72% in rural areas and 68% in urban areas.
The Government launched ‘Jan Aushadhi Scheme’ to make available quality generic medicines at affordable prices to all, especially the poor, throughout the country, through outlets known as Jan Aushadhi Stores (JASs). For ensuring availability of generic medicines at affordable prices for all, under the project title “Pradhan Mantri Jan Aushadhi Yojana (PMJAY)” was initiated by the Department of Pharmaceuticals which takes JAS forward. Procurement of drugs is only from WHO (World Health Organisation) and GMP (good manufacturing practices) compliant companies.

• Scheme can have negative impact on Pharma companies which resort established unholy nexus of doctors and drug industry.
• Large pharma companies would not be keen to participate in this as it would disturb their existing cost structure and also directly cannibalise their products in the retail market.
• Scheme will be beneficial for small scale industries and improve their quality.
• The scheme can foster rise of pharma industry in the nation which can compete globally with their assured quality and competitive cost.
• The ability of the government to create more suppliers for scheme will depend on the guarantees the government gives for both timely payment and specified minimum offtake.
• Pharma companies would decide on the products they would like to focus on, leaving out products covered under scheme.
• If the number of products is extremely large, it could squeeze many pharma players out of this sector altogether.

Jan Aushadhi can guarantee quality, consistency and assured supply to consumers, and even make India  the largest exporter of — pharma products.

Topics: GS-II: Social Sector Services Education Human Resources