Indian government is planning to open 40 Jan Aushadhi stores throughout the country by March 2009 to promote the use of generic drugs and to make health service affordable.
Indian government has announced to open 40 ‘Jan Aushadhi’ stores (people’s medicine shop) across the country to sell generic drugs at half the price of their counterpart branded drugs by March 2009.
The total estimated cost for completing the first phase of this project would be around Rs 13 Crore and an additional workforce of nearly 150 would be required to operate the plant. As per the findings of RNCOS new research report, “Indian Healthcare – New Avenues for Growth”, 80% of healthcare spending in India is still being made out-of-pocket and nearly 76 Million Indians are likely to cross 65 years of age by 2012. Therefore, the total healthcare spending in India is projected to grow at a CAGR of 17% between 2007 and 2012.
Most of the Indians give preference to high-priced medicines (branded drugs) due to the problem of their mindset that encouraged the government to open these shops throughout the country. Other major reasons for setting up these stores are lack of accessibility and affordability of healthcare services to all the sections of the population as well as lack of government’s participation in the healthcare sector.
Thus, the government is taking every essential measure to offer affordable healthcare services to everyone in the country. Jan Aushadhi stores would provide generic drugs at fraction of the price of branded drugs 24x7. These stores would be setup in cooperation of NGOs and state governments. In the second phase, dry syrups, Cephalosporin Injectibles and other formulation will be made available to people..
A few Jan Aushadhi stores are already operational in Punjab. The success of these stores in Punjab has prompted other states like Assam, Haryana, Bihar and Rajasthan to cooperate with the central government to establish these stores that enable people to access drugs at affordable range.
According to RNCOS report, “Indian Healthcare – New Avenues for Growth”, India is the world’s second largest populated country, with rapidly changing dynamics such as fast expanding economy and increasing urbanization. Moreover, the prevalence of chronic diseases in the country and the rising awareness are presenting immense growth opportunities for the healthcare service providers.”
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