Industry will heave a sigh of relief as it is not as harsh as anticipated but has significant benefits for patients as well. The overall impact is not likely to exceed R1,000 crore. The generous annual price hike based on wholesale price index is likely to come as a big boost to the industry. This is because, in any case, intense competition prevailing in the drug market ensures that today price hikes are approximately 20% of the manufacturing wholesale price index, said Ameesh Masurekar, director, AIOCD AWACS.
According to the proposed draft, the ceiling prices of drugs would be allowed to be revised annually upto the limit of the change in the Wholesale Price Index for manufactured goods, as notified by the department of industrial policy and promotion.