New Drug Policy

An attempt of the government has always been to make drugs abundantly available at the resonable costs to the consumers.

This was the recommendations of the Hathi Committee and also was the objective of the Drug Policy of 1978, because of some unimplementable provisions and the other difficulties, a revision of the 1978 Drug Policy had become essential. So the Govt of India had announced the Drug Policy of 1986 with the main objectives as follows:

  • To ensure abundant availibility at resonable prices of essentail & life saving drugs.
  • To strenghthen the system of quality control over drug production and to prom.ote the rational use of drugs in the country.
  • To create an environment conductive:-
    • to challanging new investment into the pharmaceutical industries.
    • to encourage cost effective production with economic sizes
    • to introduce new technologies
  • To streghthen the indeginous capabilities for the product of drugs.


High Lights of New Drug Policy – 94

  • Industrial Licensing for all bulk drugs and intermediates abolished except for 5 drugs reserved for public sector & for the drugs involving recombinant DNA tech.
  • Automatic Approval for the foreign tech aggrement
  • Number of drugs undre price control is reduced from 142 to 73.
  • Interministerial committee to announce R & D incentives.
  • 1 % cess on production to promote R & D
  • Setting up national pharmaceutical pricing authority.
  • Encouragement to production unit from basics.
  • Seperate Departments to focus on Ayurveda, Siddha, Unani System fo medicines.
  • Ceiling prices for standard pack sizes of price controlled formulations.


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