Study attempts to find out how India made expensive diabetes medicines affordable

Published 2026-09-20 · Updated 2026-09-20 · 3 min · 600 words

UPSC CSE Context

Why in News

A study in Diabetes Care examines how India made modern diabetes drugs affordable, offering lessons for other low- and middle-income countries.

Syllabus Connection

GS Paper 2: Health, Government policies and interventions; GS Paper 3: Issues related to intellectual property rights, pharmaceutical sector.

Exam Relevance

Relevant for questions on public health, access to medicines, patent law, and India's pharmaceutical industry.

Core Issue

India's generic-friendly patent law and domestic manufacturing lowered diabetes drug prices.

Key Development

Study highlights India's success in reducing prices of GLP-1 RAs, SGLT2i, and analogue insulins through generic competition and policy measures.

Stakeholders

• Government of India
• Domestic pharmaceutical manufacturers
• Patients with diabetes
• Global trade bodies

Static Knowledge

High-Value Background

• India's Patents Act, 1970 (as amended) includes Section 3(d) to prevent evergreening, enabling generic production.
• National List of Essential Medicines (NLEM) includes metformin and sulfonylureas but not newer diabetes drugs.

Exam Linkage

• Useful for questions on compulsory licensing, TRIPS flexibilities, and access to medicines.

Concepts in Context

• Patent evergreening: extending patent life through minor modifications, blocked by Section 3(d).
• Generic drugs: bioequivalent versions of off-patent drugs, cheaper due to competition.

Institutions and Mechanisms

• Jan Aushadhi Kendras: government-run pharmacies selling affordable generic medicines.
• Production Linked Incentive (PLI) scheme for domestic API manufacturing.

Dynamic Analysis

Health Policy

• Affordability of newer diabetes drugs remains limited by high absolute costs relative to household income.
• Lack of insurance coverage for these drugs increases out-of-pocket expenditure.
• Urban-rural disparities in medicine distribution hinder equitable access.
• Government schemes like Jan Aushadhi Kendras improve access but need formal evaluation of long-term clinical outcomes.

Economy

• India's role as major pharma exporter supports low domestic prices through economies of scale.
• Competitive entry by multiple domestic manufacturers drastically reduced semaglutide prices.
• Dependence on imported raw materials poses supply chain risks; PLI scheme aims to boost domestic API production.
• Tight price regulation may discourage innovation and investment in R&D.

International Relations

• India's patent law balances TRIPS compliance with public health needs, serving as a model for LMICs.
• Global trade policies and intellectual property regimes can affect medicine prices and availability.
• India's experience offers lessons for other countries facing high drug prices, including high-income nations.

Governance

• Regulatory strategies like price caps and distribution networks are key to affordability.
• Pharmacovigilance challenges arise with multiple generic manufacturers and quality variations.
• Need for aligning pharmaceutical policy with health financing and monitoring systems.

Prelims Takeaways

• Section 3(d) of Indian Patents Act prevents patent evergreening.
• Jan Aushadhi Kendras provide affordable generic medicines.

Mains Value Addition

Arguments

• India's success in reducing diabetes drug prices demonstrates the effectiveness of generic competition and patent safeguards.
• However, high absolute costs and lack of insurance coverage limit true affordability for many patients.
• Balancing innovation incentives with access to medicines is a key policy challenge.
• Strengthening domestic API manufacturing reduces import dependence and enhances health security.

Examples

• Semaglutide price dropped considerably after multiple domestic manufacturers entered the market.
• PLI scheme has initiated production of 26 previously imported molecules as of 2025.

Data Points

• 80% of 589 million adults with diabetes live in LMICs.
• Metformin and sulfonylureas are in NLEM; DPP-4 inhibitors, SGLT2i, GLP-1 RAs are not.

Counterpoints

• Tight regulations may hinder drug innovation.
• Quality differences among generics pose safety concerns.
• Limited formal evaluation of government schemes' long-term impact.

Way Forward

• Include newer diabetes drugs in NLEM to enable price regulation and wider access.
• Expand insurance coverage for modern diabetes therapies to reduce out-of-pocket costs.
• Strengthen pharmacovigilance systems to ensure generic drug quality.
• Evaluate Jan Aushadhi Kendras and PLI scheme for long-term health outcomes.
• Promote technology transfer and local manufacturing in LMICs through international cooperation.

Primary/reference source: National News