The Indian government is evaluating a proposal to allow a temporary increase of 10 to 15 percent in the prices of select essential medicines, in response to rising input costs and supply chain disruptions affecting the pharmaceutical sector. If implemented, the immediate impact on patients is expected to be modest, with retail prices rising by approximately 3 to 5 percent. This would bring costs close to pre-GST reduction levels observed before late September.
The proposal follows concerns raised by leading drug manufacturers regarding a sharp escalation in the prices of active pharmaceutical ingredients and key solvents. These increases have been attributed to global supply constraints linked to ongoing geopolitical tensions in West Asia, particularly the Iran conflict. Over the past two months, prices of several critical inputs such as butyl ethanol, ammonia, naphtha, isopropyl…
