Mumbai, Jan 13: Despite the steady growth of organised generic medicine outlets across India, consumer penetration remains surprisingly low. Generic medicines currently account for just 4–5% of the country’s overall drug retail market, highlighting a significant gap between availability and usage.
While affordable options are increasingly accessible, prescribing habits and consumer behaviour remain dominated by branded medicines, limiting the impact of generic medicine initiatives.
Jan Aushadhi initiatives expand access
Over the past few years, government-backed and private initiatives—most notably the Pradhan Mantri Bhartiya Janaushadhi Pariyojana—have improved access to low-cost medicines. Jan Aushadhi Kendras offer assured quality, regulatory compliance and transparent pricing, forming a cornerstone of India’s affordable healthcare strategy.
As of mid-2025, Maharashtra has around 723 Jan Aushadhi Kendras, including 79 in Mumbai (66 in Mumbai City and 13 in Mumbai Suburban). During the financial year 2024–25, these Kendras recorded cumulative sales of approximately Rs 58.7 crore.
Prescribing behaviour remains key hurdle
According to Prasad Danave, President of the Retail and Dispensing Chemist Association, the primary challenge lies in prescribing behaviour. “Patients usually purchase exactly what is written on the prescription and rarely explore alternatives,” he said.
Despite government directives encouraging doctors to prescribe medicines by their generic names, most prescriptions still mention branded drugs. Consequently, patients seldom consider generics on their own, and even when chemists suggest lower-cost substitutes, many hesitate due to loyalty to the brand specified by their doctor.
This gap underscores the difference between policy intent and on-ground adoption. “Patients often associate higher prices with better quality and are reluctant to question a doctor’s prescription,” Danave explained, noting that wider acceptance of generics would also help retailers manage inventory more efficiently by reducing the need to stock multiple branded versions of the same drug. “Out of the Rs 1.4 lakh crore medicine market, the contribution of generic medicines is hardly 4–5%,” he added.
Network expansion and cost savings
The central government plans to expand the Jan Aushadhi network from around 17,000 outlets to 25,000 nationwide to improve access to affordable healthcare. Official estimates suggest that Jan Aushadhi Kendras offer medicines at 50–80% lower prices and have generated savings of nearly Rs 40,000 crore for citizens over the past 11 years.
Private players and market dynamics
Retail players in generic medicines include private pharmacy chains, independent drug stores and government-supported outlets. For example, Zeno Health, a Mumbai-based startup, operates an omnichannel pharmacy network offering generic medicines at up to 60% lower prices through direct sourcing. Industry experts say more players are needed to make generic medicines widely available.
However, availability alone is insufficient. “Generic medicines will help only if doctors start prescribing them,” Danave said. Patient perceptions further complicate the issue, as many actively demand well-known brands, equating higher prices with superior quality.
Industry dynamics also influence prescribing patterns. Aggressive marketing by branded pharmaceutical companies often discourages doctors from switching to generics.
Dr Aniket Mule, Consultant in Internal Medicine at KIMS Hospitals, Thane, said prescribing decisions depend on clinical evidence, manufacturer reliability, patient affordability, availability and past patient experience.
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Economic impact highlighted
The economic impact of generic medicines is well documented. A study published in SAGE Journals last September found that rising medicine costs place a heavy burden on low- and middle-income households. Families purchasing generic medicines saved nearly 40% on medication expenses.
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