Indian Drug Policy revision At Last

India has now published its revised drug policy, radically liberalizing its medical drug policy to abolish production and supply restrictions on foreign pharmaceutical companies, so that they are on a par with domestic competitors (Marketletter September 12). The revision will also abolish, on all but five drugs (mainly vitamins), the requirement that companies obtain government licenses to make pharmaceuticals.

The government has also said it will cut the number of drugs subject to price controls, set up new regulatory bodies for the drug industry and raise the profit-making capacity of drug companies. Foreign companies holding more than 40% of the equity in Indian companies were until now allowed to manufacture only 66 listed drugs, and could produce only as much of a drug in India as they imported.