Skip to content
Search

Latest Stories

Modi's generics-only drugs plan worries health experts and Indian pharma sector

India's plan to bring in a law to ensure doctors prescribe medicines only by their generic names risks proliferating the sale of substandard drugs in a country where regulation is already lax, doctors and pharmaceutical executives say.

Prime minister Narendra Modi said last month that the government was looking at such a law to improve affordability of medicines in the country of 1.2 billion people, where the majority live on less than $2 a day.


The government has not given any details or timeframe for the planned legislation but some in the industry fear that hasty execution could harm, not help, public health.

Large drugmakers in India such as Cipla and Sun Pharmaceutical Industries that mostly sell generic drugs under their own brand name, or 'branded generics', compete with much smaller garage manufacturers, many of which operate with scant quality checks.

It is a fiercely competitive, high-volume market, dominated by the big players like Cipla, who employ armies of salesmen to sell their drugs. Some doctors say they tend to prescribe branded generics to patients because they are confident of their quality.

While the government wants to make cheaper non-branded drugs available to consumers, pharmaceutical executives said any law would have to stipulate that the drugs consumers get from pharmacists meet certain quality standards.

"I think the quality aspect is very important for the government to address ... to make sure that all companies in India are on the same quality footing," said Cipla's CEO Umang Vohra.

There is no national data comparing the quality of branded generics, versus unbranded ones. But small studies have shown that unbranded drugs, typically procured by the government for the public health system, have quality issues.

A report by the country's federal auditor in 2012 showed that 31 percent of drugs procured by the government for the Armed Forces Medical Stores were substandard in 2010-11, up from about 15 percent in 2006-07.

Results of the government's largest-ever national survey to test drug quality showed this year that roughly 10 percent of the drugs in the government supply chain were not of standard quality, versus 3 percent of drugs available at pharmacies, which are usually branded generics.

"Generics are fine, but there has to be a proper rigorous mechanism to enforce quality, like the U.S., and unless India evolves on that it will be disastrous," said Nilesh Gupta, managing director of Lupin, India's No. 3 drugmaker by sales.

Substandard medicines range from drugs that don't work at all to those that don't work as expected, thereby contributing to antimicrobial resistance - a major global health problem.

"The idea is very good, but the government needs to ensure the availability of good quality generics," said Vijay Panikar, a Mumbai-based diabetologist.

Indian drugmakers' manufacturing standards, including those of big companies such as Sun Pharma, have been found to have fallen short of international standards in recent years. An industry official said last week that it will be at least five years before Indian manufacturing and data reliability meet the standards of the United States, India's biggest drugs export market.

"It's a work in progress ... I think the bigger companies understand the problem and are working to fix it," said Gupta of Lupin.

Health experts warn of a series of problems with the implementation of a generics-only rule. For example, half the Indian market is made up of combination drugs, and it would be impractical to ask doctors to prescribe a series of chemical names, said S. Srinivasan, a doctor and member of the People's Health Movement, a New Delhi-based NGO.

Doctors opposed to the planned new rule warn it would put too much power in the hands of the chemists.

"Today if I write a generic, the chemist will decide which drug to give, and he will obviously give the one in which he has the biggest margin, without caring about quality,"

More For You

UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy grew 0.7 per cent in Q1 2025, fastest in a year

THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.

Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.

Keep ReadingShow less
Rosneft in early talks to sell India refinery stake to Reliance

Reliance Industries chairman Mukesh Ambani (Photo: Getty Images)

Rosneft in early talks to sell India refinery stake to Reliance

RUSSIAN oil major PJSC Rosneft Oil Company is in early discussions with Reliance Industries to sell its 49.13 per cent stake in Nayara Energy, an Indian energy company that operates a 20-million-tonnes-per-year oil refinery and 6,750 petrol pumps, sources familiar with the matter said.

The deal, if finalised, would see Reliance overtake state-owned Indian Oil Corporation (IOC) to become India’s largest oil refiner. It would also provide Reliance with a significant expansion in fuel retailing, where it currently holds a relatively small presence.

Keep ReadingShow less
Anil Agarwal

Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)

Getty Images

Anil Agarwal’s Vedanta Resources signs £438 million refinancing deal

VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.

The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.

Keep ReadingShow less
Trump-Getty

Trump said that while deals are being made with some countries, others may face tariffs.

Getty Images

Trump says major trade deal with India may be finalised soon

US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.

“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.

Keep ReadingShow less
Asda suffers nearly £600m loss as debt and IT costs surge

Asda co-ownerMohsin Issa. (Photo: Asda)

Asda suffers nearly £600m loss as debt and IT costs surge

ASDA, one of Britain’s largest supermarkets, has reported a pre-tax loss of £599 million for 2024, swinging sharply from a £180 million profit the previous year.

The loss comes despite total sales rising by over £1 billion to £26.8bn, as the retailer faces mounting debt costs, falling sales, and spiralling spending on a major IT overhaul, the Telegraph reported.

Keep ReadingShow less