Over the years, India has developed a strong capability in producing quality
branded and generic medicines in most of the therapeutic categories, evolving from
a mere Rs 1,500 crores industry in 1980 to a more than Rs 1,19,000 crores industry
in 2012. However, 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 find it difficult to afford the more
expensive branded category of medicines.
Medicines in almost every therapeutic category are sold primarily as
branded drugs, at disproportionately high prices.
There is still a large section of the population which finds it difficult to
afford these high-priced medicines. According to World Health Organization
estimates (2008), 65% of India‟s population does not have access to modern health
care. Since 80% of out-patient care and 60% of in-hospital care occurs at private
hospitals in India, households are exposed to a private-sector market to buy drugs
(Public Health Foundation of India, 2012).
According to NSO estimates, upto 79% of health care expenses in rural areas are due to the cost of medicines. This problem gets further aggravated as almost 80% of expenditure on
health care is borne by the patients themselves.
Thus, access to low-priced genericdrugs is very critical in ensuring health care at affordable prices.
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