Expansion of Jan Aushadhi Scheme
Context:
The government’s affordable medicine initiative, Jan Aushadhi, is set for a significant expansion, with plans to establish over 10,000 new stores across India within the next two years.
The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) is an initiative by the Indian government to provide affordable, high-quality medicines to all citizens, especially the poor and disadvantaged. This is achieved through dedicated Jan Aushadhi stores that offer generic medicines, which are equivalent in quality and efficacy to branded drugs but available at significantly lower prices.
More on News
- With this expansion, the primary focus is now on ensuring that the new Jan Aushadhi Kendras—which offer generic medicines at prices 50-80% lower than branded alternatives—are adequately stocked to meet growing demand.
- Additionally, a nationwide publicity campaign is in the works to boost awareness and increase footfalls at these outlets.
Accelerated Growth Since 2022
- Originally revamped in 2015, the scheme grew at a modest pace in its early years due to supply chain bottlenecks and concerns over drug quality. However, this changed in the last two years.
- Previously, around 1,000 new Jan Aushadhi Kendras were opened annually. In contrast, 2024 alone saw 4,500 new centres being registered. The rapid expansion has also led to a significant surge in revenue:
- In FY21, the scheme sold medicines worth ₹665 crore.
- By FY23, sales had nearly doubled to ₹1,236 crore.
- In FY24, annual turnover rose further to ₹1,470 crore.
- The PMBI now aims to cross ₹2,000 crore in sales in FY25.
- Given the recent surge in growth, the government has raised its target from 10,000 to 25,000 Jan Aushadhi Kendras by FY27.
- As of now, there are 15,033 registered centres, a dramatic increase from just 80 centres in 2014, when the scheme was first revamped.
Economic Survey 2024-25
The Economic Survey highlights the Jan Aushadhi scheme for its role in improving access to affordable medicines. The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) aims to make quality generic medicines available at affordable prices to the masses through dedicated stores.
Key aspects of the Jan Aushadhi scheme:
- Affordable Medicines: The scheme provides medicines at affordable prices, particularly benefiting the poor and disadvantaged, thus reducing out-of-pocket expenses in healthcare.
- Savings to Citizens: In the financial year 2022-23, sales under PMBJP led to savings of approximately ₹7,416 crore for citizens. In the current financial year 2023-24 (up to 30.11.2023), the sales have already led to savings of approximately ₹4,680 crore. In the last 9 years, approximately ₹23,000 crore have been saved under this project.
- Increased Access: The scheme has expanded to over 10,000 retail outlets, providing access to quality generic medicines at affordable prices, especially for the poor and underprivileged.
- Sanitary Napkins: Jan Aushadhi Suvidha Sanitary Napkins are available at ₹1 per pad through PMBJKs across the country to ensure easy availability of menstrual health services at affordable prices for women.
- Raising Household Income: The PMBJP can cumulatively be expected to significantly raise the income of the bottom half of the population.
Addressing Supply and Quality Challenges
- Supply Chain: A key factor behind the scheme’s success in recent years is improved supply chain management.
- For a long time, pharmacists reported shortages of key medicines, which hindered the scheme’s effectiveness.
- The two new warehouses have been added in Bengaluru and Surat in 2023 to streamline distribution.
- Drug Quality: Concerns over drug quality have also been persistent.
- Jan Aushadhi medicines are sourced from over 200 manufacturers across the country, and to address safety concerns, the agency has stepped up testing protocols to ensure consistency and quality.
With a strengthened supply chain, better quality control, and a renewed public awareness push, the Jan Aushadhi scheme is poised for substantial growth. By making affordable healthcare accessible to millions, the initiative continues to play a crucial role in reducing the cost burden of essential medicines for the Indian population.
