NPPA Caps Prices of Common Drugs - What It Means For Your Medical Bill

The National Pharmaceutical Pricing Authority (NPPA) has fixed the retail prices of 37 essential drug formulations across multiple pharmaceutical companies. The move, announced via a notification dated 1 August 2025, has been implemented under the provisions of the Drugs (Prices Control) Order, 2013, to improve access to vital medicines and standardise costs nationwide.

Wide Range of Medicines Covered
The notification covers a diverse list of treatments, including:
Antibiotics such as Amoxycillin with Potassium Clavulanate, Cefixime combinations and Dicloxacillin blends.
Painkillers and anti-inflammatory drugs like Diclofenac injections and Aceclofenac-Paracetamol combinations.
Cardiovascular medicines such as Atorvastatin combinations and Bisoprolol with Amlodipine.
Respiratory medicines including formulations containing Ipratropium.
Diabetes treatments like Empagliflozin, Sitagliptin, and Metformin blends.

Compliance Rules for Manufacturers
“Manufacturers selling branded or generic or both versions of the medicines at a price higher than the retail price (plus GST, if applicable) shall revise the prices downward not exceeding the retail price,” the NPPA stated. Companies already pricing below the fixed ceiling must maintain their existing MRP.

The NPPA has clarified that Goods and Services Tax may only be added if it has actually been paid or is payable to the government on the notified retail price.

Legal Enforcement and Next Steps
Manufacturers are required to issue updated price lists in Form–V from the notification date, submit them to NPPA via the Integrated Pharmaceutical Database Management System (IPDMS), and provide copies to State Drug Controllers and dealers. Retailers and dealers must display the price lists prominently for public reference.

Non-compliance will attract action under the DPCO, 2013, read with the Essential Commodities Act, 1955, including recovery of overcharged amounts with interest.
The detailed list of all 37 medicines, their strengths, manufacturers, and capped retail prices is available in the official NPPA notification.

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