Pradhan Mantri Bharatiya Janaushadhi Pariyojana: Advancing Health Equity In India – IMPRI Impact And Policy Research Institute

Policy Update
Tanu Paliwal

Introduction

India’s healthcare system, despite being a global leader in pharmaceutical production with 8% of the world’s medicines produced by volume faces persistent challenges in making medicines affordable and accessible to its citizens. With 60% of the population lacking regular access to essential medicines, the high cost of healthcare, especially medicines, continues to push millions into poverty.

According to the Public Health Foundation of India, 55 million Indians were driven into poverty in a single year due to healthcare expenses, with 38 million of them falling below the poverty line solely because of medical costs. Out-of-pocket expenditure remains a dominant source of healthcare funding, contributing to over 90% of total spending. Medicines alone account for 60-90% of healthcare costs for poor households.

One of the major solutions to this crisis lies in promoting generic medicines. Generic drugs are bioequivalent to branded drugs in terms of quality, efficacy, and dosage but are sold at significantly lower prices because they do not include research and development costs. By contrast, branded medicines are sold under a proprietary trademark, often at premium prices to recover the investment made in clinical trials, marketing, and branding. A third category, branded generics, combines elements of both branded and generic drugs. While branded generics are bioequivalent to their original branded counterparts, they are marketed under a new name after patent expiration and are often priced higher than unbranded generics.

For instance, a generic antibiotic containing the same active ingredient as a branded drug might cost ₹10 per dose, while its branded counterpart could cost ₹100. Branded generics, on the other hand, maybe priced at ₹50 due to marketing and packaging costs. This pricing disparity underscores the urgent need for initiatives like the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP), which aims to popularize affordable generic medicines without compromising on quality.

The government launched PMBJP as a strategic intervention to reduce the financial burden of healthcare on households. By leveraging India’s robust pharmaceutical manufacturing capabilities, the scheme ensures that high-quality medicines are accessible to all sections of society, especially the economically disadvantaged.

Background

The Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP) was initially launched in 2008 under the name Jan Aushadhi Scheme, with the Ministry of Chemicals and Fertilizers overseeing its implementation, to provide affordable medicines to the public through dedicated outlets known as Janaushadhi Kendras. However, the scheme encountered multiple hurdles, including inadequate infrastructure, poor supply chains, operational difficulties, and limited public awareness. By 2014, only 80 stores were operational across India, falling far short of its intended impact.

In 2015, the government revamped the scheme as Pradhan Mantri Jan Aushadhi Yojana (PMJAY), addressing previous shortcomings. This restructured version introduced financial incentives for store operators, ensured better logistics management, and expanded the availability of generic medicines. The scheme operates through the Bureau of Pharma Public Sector Undertakings of India (BPPI), which coordinates medicines’ procurement, distribution, and marketing. By focusing on affordability and accessibility, PMBJP has become a cornerstone of India’s healthcare reforms.

In November 2016, the scheme underwent a final rebranding as Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP).Since then, the scheme has witnessed remarkable progress. By 2022, over 8,600 Janaushadhi Kendras were operational, and by 2024, this number had exceeded 14,000, covering nearly all districts in the country.

Objectives

At its core, PMBJP is driven by the following key objectives:

1. Affordable Healthcare: To provide quality medicines, consumables, and surgical items at reduced costs, minimizing out-of-pocket expenditures for consumers.
2. Promotion of Generics: To dispel the misconception that low-priced generic medicines are inferior in quality and to popularize their use among the masses.
3. Enhancing Accessibility: To ensure the availability of an extensive range of generic medicines and medical products across therapeutic categories.
4. Focus on Women’s Health: To make menstrual hygiene products like Janaushadhi Suvidha sanitary napkins widely available at affordable prices.
5. Employment Generation: To engage entrepreneurs, particularly women and marginalized groups, in the operation of Janaushadhi Kendras, creating employment opportunities nationwide.

Functioning

The PMBJP operates on a not-for-profit model, focusing on affordability and sustainability. Janaushadhi Kendras, the backbone of the scheme, sells medicines at prices 50-90% lower than those of branded alternatives. For instance, a branded diabetes medication priced at ₹200 might be available at a Kendra for as low as ₹20.

The scheme sources its medicines exclusively from WHO-GMP-certified suppliers, ensuring adherence to stringent quality standards. Each batch undergoes rigorous testing at NABL-accredited laboratories, reinforcing consumer trust in the safety and efficacy of the products. Additionally, a robust supply chain supported by SAP-based inventory management ensures timely delivery to over 14,000 kendras nationwide.

Store operators are incentivized to enhance their operational efficiency:

• A regular incentive of up to ₹5,00,000, capped at ₹15,000 per month.
• A special one-time incentive of ₹2,00,000 for entrepreneurs in northeastern states, aspirational districts, and backward regions.

Impact

The PMBJP has revolutionized healthcare access in India, delivering significant economic and social benefits. By October 2024, the scheme achieved sales of ₹1,000 crore, saving citizens an estimated ₹5,000 crore in medicine expenses. Over 14,000 Janaushadhi Kendras operate across the country, providing quality healthcare products to millions.

This transformation has been particularly impactful for economically disadvantaged groups. For instance, rural households, where medicines account for nearly 77% of healthcare spending, have reported substantial savings through the scheme. Urban households, which spend 70% of their healthcare budget on medicines, also benefit from the lower costs offered by Janaushadhi Kendras.

The number of kendras has grown exponentially, from just 80 in 2014 to over 14,000 today. This rapid expansion highlights the scheme’s success in bridging healthcare inequities. The government now aims to establish 25,000 kendras by 2026, further strengthening healthcare accessibility.

Empowering Communities

The impact of PMBJP extends beyond cost savings. Nearly 1,000 kendras are managed by women entrepreneurs, reflecting the scheme’s commitment to gender empowerment. Moreover, the availability of Janaushadhi Suvidha sanitary napkins at a minimal cost has significantly improved menstrual hygiene awareness and accessibility for women in underserved regions like Muzaffarpur and Samastipur districts of Bihar

Quality Assurance

The scheme emphasizes stringent quality control measures to ensure consumer trust. Medicines procured under PMBJP undergo a two-tier quality assurance process:

1. Testing at NABL-accredited laboratories.
2. Regular comparison with popular branded medicines for quality parameters such as assay and solubility.

These measures have ensured that over 99% of tested batches meet quality standards, dispelling concerns about the efficacy of generic medicines.

Way Forward

As PMBJP progresses, several initiatives can further enhance its impact:

1. Expanding Geographic Reach: Establish more kendras in rural and semi-urban areas to address regional disparities in healthcare access.
2. Awareness Campaigns: Launch nationwide campaigns to educate consumers and healthcare providers about the benefits and efficacy of generic medicines.
3. Supply Chain Optimization: Strengthen logistics to ensure the timely availability of medicines, particularly in remote areas.
4. Technological Integration: Implement advanced Management Information Systems (MIS) for real-time inventory tracking, decision-making, and performance evaluation.
5. Policy Support: Encourage government hospitals and healthcare centers to procure and prescribe generic medicines.

With plans to expand its product basket to include 2,000 medicines and 300 surgical items, PMBJP is well-positioned to become a cornerstone of India’s universal health coverage ambitions. By prioritizing affordability, accessibility, and quality, the scheme continues to transform healthcare delivery in India, empowering millions to lead healthier lives.

References 

1. Press Information Bureau.(2023, December 20) Pradhan Mantri Bhartiya Janaushadhi Pariyojana achieved their target of Rs. 1000 Crore in sales in FY 2023-24. Retrieved January 10, 2025, from https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1988675 
2. Press Information Bureau.(2024, October 23) Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): A Journey Towards Affordable Healthcare. Retrieved January 10, 2025, from https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2067441 
3. Chaturvedi, A., Dubey, A. K., Naveen, A., & Sravani, M. R. (2024). Perceived utility of Jan Aushadhi outlets and awareness of generic medicines at the Andaman and Nicobar Islands: A Cross-Sectional Study. Cureus. https://doi.org/10.7759/cureus.57630
4. PharmD, K. B. (2021, March 5). The FDA, Generics and Differentiating Authorized from Branded Types. Pharmacy Times. https://www.pharmacytimes.com/view/the-fda-generics-and-differentiating-authorized-from-branded-types-#
5. Roy, V., Gupta, U., & Agarwal, A. K. (2012, November 1). Cost of medicines & their affordability in private pharmacies in Delhi (India). https://pmc.ncbi.nlm.nih.gov/articles/PMC3573605/#:~:text=In%20conclusion%2C%20high%20cost%20of,to%20medicines%20for%20the%20people.
6. Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, Government of India. (2023). Writeup on 9-year journey of Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP).
7. Asher, M., Upadhyay, K., & MyIndMakers. (2021). An analysis of Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana (PMBJP)[Journal-article]. https://www.ris.org.in/sites/default/files/Opinions-Comments/An%20Analysis%20of%20Pradhan%20Mantri%20Bhartiya%20Jan%20Aushadhi%20Pariyojana%20%28PMBJP%29.pdf
8. Department of Pharmaceuticals. (2023). PMBJP. https://janaushadhi.gov.in/pdf/Presentation%20on%20PMBJP_27022023.pdf
9. View of Survey of the Jan Pariyojana Scheme in India and its impact on citizens during the previous decade. (n.d.). https://www.ijdra.com/index.php/journal/article/view/537/293

About the Author: Tanu Paliwal, a Visiting Researcher and Assistant Editor at IMPRI and a Master’s student in Public Health (Social Epidemiology) at Tata Institute of Social Sciences, Mumbai.

Acknowledgment: The author would like to thank Naushaba and Avi Sharma for their kind comments and suggestions to improve the article.

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