Just like metamorphosis of butterflies has stages: Egg, Caterpillar (or larva) – the feeding stage, Pupa – the transition stage, and Adult as butterfly, the same applies to Jan Aushadhi Scheme that has transformed into Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) over a period.
PMBJP has a comprehensive product basket comprising 2,047 drugs and 300 surgical items. In recent years, number of PMBJP Kendras has substantially gone up. In 2022-23, there were 9,304 Janaushadhi Kendras and the number reached 10,006 by 2023-24. By September 30, 2024 there were 13,822 Janaushadhi Kendras and the number of Janaushadhi Kendras reached 14,080 as on October 23, 2024. The vision is to establish 25,000 Jan Aushadhi Kendras in next two years. Janaushadhi medicines comprise medicines from 40+ therapeutic groups including antibiotics & anti-infectives, anti-diabetics, anti-cancer, cardiovascular drugs, analgesics and antipyretic, anti-allergic, gastro-intestinal agents, vitamins & minerals, to name a few. Surgical supplies & medicines devices include surgical dressings, syringes & needles, orthopedic rehabilitation products, oximeter, rapid antigen test kits to name a few.
Janaushadhi Kendras which are now known as ‘Pradhan Mantri Bhartiya Janaushadhi Kendra (PMBJK)’ have drastically altered the landscape of pharmaceutical industry in India. It is interesting to see the transition of the Pariyojana since its inception. This transition reflects the change in focus on ‘product basket’, ‘number of outlets’, ‘role of implementation agency’, ‘geographic reach’, ‘benefits for the end-user’, among others.
On April 23, 2008, the Pharma Advisory Forum had decided to launch the Jan Aushadhi Campaign. It was to be done with the sale of generic medicines through dedicated sales outlets called Jan Aushadhi Stores (JAS) and at least one such store was to be opened in each of the 630 districts of the country at that time, and these Kendras were to be extended to sub-divisional levels as well as major towns and village centers. The first Jan Aushadhi Medical store was opened on November 25, 2008 with the participation of Central Public Sector Undertakings viz. Indian Drugs and Pharmaceuticals Limited (IDPL), Hindustan Antibiotics Limited (HAL), Rajasthan Drugs and Pharmaceuticals Limited (RDPL), Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) and Bengal Chemicals and Pharmaceuticals Limited (BCPL). Tagline – Quality Medicines at Affordable Prices for All, expressed the motto of the Scheme.
For implementation of ‘Jan Aushadhi Scheme’, an implementation agency in the name of Bureau of Pharma PSUs of India (BPPI) was established in December 2008 under the Department of Pharmaceuticals, Government of India. The BPPI was registered as an independent society under the Societies Registration Act, 1860 as a separate legal entity in April 2010. The BPPI was assigned the role to ‘make quality generic medicines available at affordable prices for all’, ‘marketing of generic drugs through dedicated outlets’, ‘procurement of medicines from Central Pharma Public Sector Units (PSUs) and Private Sector’ along with ‘monitoring proper running of dedicated outlets’.
By March 31, 2012 there were just 157 Jan Aushadhi Stores and many of these stores became non-functional too (Jan Aushadhi Scheme, Annual Report 2015-16). By the end of FY15, the number of functional stores remained just 99 and number of products physically available were less than 100. In this background, a Strategic Action Plan was devised by the BPPI that culminated into declaration of Year 2015-16 as the ‘Year of Action’. For the first time, ‘Vision’ and ‘Mission’ statements were formulated for the project. Availability (of medicines covering all therapeutic groups and surgicals & consumables at Jan Aushadhi stores), Acceptability (by ensuring quality safety and efficacy of medicines and conformance with required standards), Accessibility (by opening more Jan Aushadhi Stores), Affordability, Awareness (through media campaigns, standardized branding across all old stores as well as in the new stores), ‘Viability’ and ‘Capability’ for Implementation, were identified as key significant areas.
In September 2015, the ‘Jan Aushadhi Scheme’ was revamped as ‘Pradhan Mantri Jan Aushadhi Yojana’ (PMJAY). The scheme was renamed as ‘Pradhan Mantri Bhartiya Janaushadhi Pariyojana’ in November 2016. During 2015-16, significant progress was made as evident in the product basket of 452 medicines and 153 surgical and consumables.
By 2019-20, PMBJP had achieved sales of Rs. 433.61 crores at Maximum Retail Price (MRP) which led to savings of approximately Rs. 2,500 crores for the common man. In January 2019 a study for ‘Improving Effectiveness of Jan Aushadhi Stores’ was published by NITI Aayog. The scheme was also reviewed by Departmental Parliamentary Standing Committee which submitted its report in March 2021. Based on the study and the report, follow-up actions were taken on the implementation of the scheme.
The name of Bureau of Pharma PSUs of India (BPPI) was changed to Pharmaceuticals & Medical Devices Bureau of India (PMBI).
The Scheme has affected all stakeholders, e.g., patients got medicines at lower prices, gainful employment opportunities as more stores have been opened over a period as sales per Janaushadhi store has gone up from Rs. 0.03 Crore in 2016-17 to Rs. 0.13 Crore in 2022-23, and Rs. 0.14 Crore in the first half of FY24. On February 24, 2023 a Press Information Bureau (PIB) release stated that ‘on an average 1.2 million persons visit Jan Aushadhi outlets every day’.
Pharmaceutical industry is likely to be affected to extent of 110 basis points (bps) annually till FY28 because of trade generics as per an estimate of Kotak Institutional Equities. Even prominent pharmaceutical companies namely Cipla, Alkem, Dr. Reddy’s Laboratories, and Torrent have ventured into trade generics space. Jan aushadhi model has encouraged private players to explore this space, e.g., DavaIndia Pharmacy that came up in 2017 has grown into network of over 1,200 outlets countrywide.
In April 2023, it was reported that Nigeria sought India’s help to emulate Jan Aushadhi Kendra model to make available quality medicines, consumables, and surgical items at affordable prices for all and reduce the out-of-pocket expenditure of consumers and patients. India’s first International Janaushadhi Kendra was established in Mauritius. Most recently, in November 2024 (Mint dated November 15, 2024), it was reported that delegates from Fiji Islands, Burkina Faso, Saint Kitts and Nevis had visited PMBI Head Office, Central Warehouse, and Jan Aushadhi Kendras as these countries want to replicate this model in their country. This also reflects that if any model succeeds in a country with a population of 1.4 billion is likely to find takers in many developing countries.
In FY23, PMBI sold Jan Aushadhi medicines worth Rs. 1,236 crore which was almost 40 per cent higher than FY22. In FY2022-23, sale of Jan Aushadhi medicines led to the savings of approximately Rs. 7,416 crores for the citizens of the country. Medicines are offered at lower prices, and the difference is 50% as compared to branded alternatives. In certain cases, the difference is 80-90% too. Janaushadhi medicines worth Rs. 1,000 crores were sold in 2024-25 till October 20, 2024, itself. In September 2024 alone, Janaushadhi medicines worth Rs. 200 Crores were sold. On October 22, 2024 Ravi Dadhich, CEO, PMBI highlighted that Jan aushadhi medicines resulted in nationwide savings of Rs. 30,000 crore to date.
Dr. Anil Kumar Angrish- Associate Professor (Finance and Accounting),
Department of Pharmaceutical Management, NIPER S.A.S. Nagar (Mohali), Punjab
Disclaimer: Views are personal and do not represent the views of the Institute.
