The National Pharmaceutical Pricing Authority (NPPA) has issued a directive to pharmaceutical manufacturers and marketing firms, instructing them to revise the Maximum Retail Price (MRP) of medicines that are now exempt from customs duty, following the tax concessions announced in the Union Budget 2025.
Mandatory Price Adjustments for Duty-Exempt Drugs
In an official memorandum dated February 17, the NPPA emphasized the need for manufacturers to ensure that the price reduction is reflected in the final cost to consumers. The revised MRP must be published and shared with dealers, state drug regulators, and other relevant authorities. The move aims to prevent discrepancies in drug pricing and ensure patients receive the full benefit of duty exemptions.
The NPPA’s directive applies to all medicines and formulations covered under the duty exemption list. As per the Drugs (Price Control) Order, 2013, the MRP of drugs must include all applicable taxes and duties, meaning any reduction or removal of levies should be adjusted accordingly.
Budget 2025: Duty Exemptions for Life-Saving Drugs
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, introduced full customs duty exemptions on 36 life-saving drugs, making them more affordable for patients. Among the drugs benefiting from this exemption are:
- Onasemnogene abeparvovec – used to treat spinal muscular atrophy (SMA) in children
- Asciminib – prescribed for chronic myeloid leukemia
- Mepolizumab – a monoclonal antibody used to manage severe asthma
These exemptions are part of a broader initiative to reduce healthcare costs and improve access to essential medicines for Indian patients.
Government Increases Healthcare Spending in Budget 2025
The Indian government has allocated ₹99,858.56 crore for healthcare development in FY25-26, representing a 9.78% increase compared to the ₹90,958.63 crore earmarked in the previous fiscal year.
Key allocations include:
- ₹9,406 crore for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY)
- ₹4,200 crore for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM)
- ₹2,445 crore under the Production-Linked Incentive (PLI) scheme for the pharmaceutical sector
Additionally, the government has outlined plans to establish 200 daycare cancer centres in 2025-26, with a long-term goal of setting up such facilities in every district hospital across the country within the next three years.
Also read: Customs Duty Cuts to Boost Indian Pharma
Ensuring Compliance with Pricing Regulations
The NPPA’s order reinforces the government’s commitment to regulating drug prices and ensuring fair market practices in the pharmaceutical sector. As drug manufacturers comply with these pricing revisions, the healthcare industry is expected to see greater transparency in medicine costs, directly benefiting patients and reducing their financial burden.
