Expressing concern over the proposal to expand price control from 74 to 354 drugs in the proposed national pharmaceutical policy, industry chamber CII today said the step will prove detrimental to the growth of the industry as well as the economy.
"Healthy competition between pharma companies already ensures reasonable pricing. Instead of affecting the growth by over regulation, it would be better to allow market forces to determine prices," CII's National Committee on Drugs and Pharmaceuticals Chairman Ajay Piramal told reporters after a meeting with the committee members here.
The committee suggested that the government should maintain 'status quo' on the current 74 bulk drugs under cost based price control and effective monitoring of the National List of Essential Medicines (NLEM) drugs to control any abnormal price increase.
"Any sudden regulatory shocks like increased price contro would be detrimental to the industry and the economy," Piramal said.
Quoting independent studies, Piramal said that there had been an average five per cent decline in real terms over the last four years and drug prices in India are among the lowest in the world.
He pointed out that product patent regime will impact the industry leading to higher investment requirement for R&D.
"Large investments in R&D are critical for affordable medicines in the future," he said.