Lower drugs costs and insurance may help India achieve affordable medicines

The next few years will spell considerable growth and change for the Indian health insurance industry, as providers rush to respond to calls for reference pricing and the rising demand for drugs, according to a new report by health care intelligence experts GBI Research.

The new report investigates drug pricing as a growing issue faced by the Indian government today. India’s average health care expenditure is the lowest in the world, due to the country’s billion-plus population and low per capita income. However, GBI Research suggests that a holistic view of health care costs could be adopted to ensure access to affordable medicine for the common people.

The Indian pharmaceuticals market is currently characterized by high profits and uneven pricing. Health insurance increases demand for pharmaceuticals in India by making high-cost prescription drugs more affordable. Sales of expensive patented drugs depend heavily on the growth and maturity of the health insurance sector.