NEW DELHI: In a major overhaul of the country's drug policy, the government is likely to soon disband the National Pharmaceutical Pricing Authority (NPPA) in its present form and assume the power to set prices of essential medicines, as it seeks to address concerns that excessive controls were stifling innovation and competitiveness of the sector.The revamped policy will also delink price control from essential medicines. Under the current regime, the moment a drug is brought under the list of essential medicines, it is subject to the price control mechanism.The new system will be more flexible and prices will be regulated only when required. Senior government officials also decided last month to do away with the system of periodic renewal of licences for manufacturing and sale of drugs in the country. The usual process of regular inspections will continue.These steps are being taken with a view to optimise the full potential of India’s pharmaceutical sector.It is estimated that the sector has the potential to grow to $55 billion in revenues by 2020 from $20 billion in 2015. The sector has attracted foreign investment worth $14 billion since 2000 and it’s the sixth-largest recipient of FDI across all industry categories.

Source: Economic Times November 02, 2016 19:17 UTC