Sreeram Viswanath

Expert

Published on: Jul 30, 2026

Jan Aushadhi Scheme

The affordability of medicines in India leaves a lot to be desired, as many of the financially challenged citizens are unable to meet the cost of medicines. Considering the importance of adequate and proper healthcare, the Government of India introduced the ‘Jan Aushadhi' scheme for extending the availability of medicines and quality healthcare to the needy. In this article, we look at an overview of the Jan Aushadhi Scheme. Know more about

opening a pharmacy in India.

Mode of Operation

The campaign would involve the launch of Jan Aushadi stores, through which quality and unbranded medicines would be provided at affordable costs. The operational responsibilities are vested with a task force comprising of senior officers of the Department of Pharmaceuticals, CEOs of Pharmaceutical CPSUs, representatives of the pharma industry, NGOs/Charitable organizations, State Governments and qualified doctors from reputed healthcare institutions.

Objectives of the Campaign

  • Ensuring the availability of quality medicines through the CPSU (Central Public Sector Undertaking) supplies and GMP compliant manufacturers.
  • Facilitate the coverage of quality generic medicines to the rich and the poor, which would favourably affect the unit cost of treatment per person.
  • Educating the general public about the benefits of procuring medicines at a lower cost.
  • Encouraging doctors to suggest unbranded generic medicines to patients.

Features of the Initiative

  • ‘Jan Aushadhi’ stores will be launched in Government hospitals and other accessible places.
  • The campaign proposes to launch 300 ‘Jan Aushadhi’ stores, out of which over 150 have already been set-up.
  • Over 500 medicines will be available under the scheme.
  • The Government strives to incentivize the store owners by providing them funds amounting to Rs. 2 lakhs, and a sum of Rs. 50 lakhs for the procurement of hardware.
  • The store-owners can procure the medicines at a discount of 16%.
  • The National Accreditation Board will authenticate the drugs before releasing them to the store.
  • The campaign will involve the participation of the public sector and private sector so as to ensure widespread coverage to all locales of the country.
  • The scheme facilitates savings among the needy.

The Layout

Under the campaign, a list of Unbranded Generic medicines has been prepared to treat chronic and other ailments by using the National List of Essential Medicines (NLEM) as a source. In addition to this, each state would be provided with an add-on list known as the State List (SL) based on the consumption of any specific medicine in the locality. 'Jan Aushadhi' stores will gradually be launched in all the districts of the country.

Bureau of Pharma PSUs of India (BPPI)

Bureau of Pharma PSUs has been established with the objective of facilitating a focused and empowered structure for the implementation of tasks. The entity will be responsible to:

  • Coordinate the marketing of generic drugs through the Jan Aushadhi stores.
  • Coordinate the supply chain of medicines.
  • Coordinate with hospitals in the preparation of formulas.
  • Scrutinize the operations of the 'Jan Aushadhi' stores with the assistance of other CPSUs.
  • Ensure the distribution of medicines at the appropriate rates.

Core Committee

The department of pharmaceuticals and NPPA has established a core committee to coordinate tasks with State Governments, the private sector, and CPSU’s. The committee is required to:

  • Create awareness among the consumers through multimedia promotions.
  • Formulate a scheme after the success of the pilot project, with particular emphasis on the needy.
  • Periodically analyze the scheme in terms of its implementation and make the necessary rectifications.

Ownership of Stores

The stores can be established and operated by the State Governments, as well as NGOs/Charitable/Cooperative Government bodies, etc. It may be noted that the recurring expenditure for stores established outside government hospitals must be borne by the respective body.
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Frequently Asked Questions

Common questions about Jan Aushadhi Scheme: Affordable Medicines Initiative India.

The Jan Aushadhi Scheme is a Government of India initiative aimed at making quality generic medicines available at affordable prices to all, especially the economically disadvantaged sections of society. It involves setting up 'Jan Aushadhi' stores across the country to provide unbranded but quality generic medicines at significantly lower costs than branded ones.
Jan Aushadhi stores can be opened and operated by State Governments, NGOs, charitable institutions, cooperative societies, and other government bodies or organizations. The scheme provides financial assistance of up to Rs. 2.5 lakhs to prospective store owners for setting up the facility.
The BPPI is responsible for coordinating the supply chain of medicines, marketing generic drugs through Jan Aushadhi stores, ensuring quality control, and monitoring the operations of these stores with the assistance of other Central Public Sector Undertakings (CPSUs).
The medicines are procured from CPSU suppliers and GMP (Good Manufacturing Practices) compliant manufacturers. A National List of Essential Medicines (NLEM) has been prepared, along with State Lists (SLs) based on local medicine consumption patterns. The National Accreditation Board authenticates the drugs before they are supplied to the stores.
The key objectives include ensuring the availability of quality generic medicines, facilitating affordable healthcare for all, educating the public about the benefits of generic medicines, encouraging doctors to prescribe unbranded generics, and reducing the overall cost of treatment.
Store owners can procure medicines at a discounted rate of 16% from the manufacturers. They also receive financial assistance of up to Rs. 2.5 lakhs from the government for setting up the store and purchasing necessary hardware.
The Core Committee, comprising representatives from the Department of Pharmaceuticals, NPPA, State Governments, and the private sector, is responsible for creating awareness about the scheme, formulating implementation strategies, periodic analysis, and making necessary rectifications.
The scheme aims to make over 500 different medicines available through Jan Aushadhi stores, covering a wide range of chronic and other ailments.
The National Accreditation Board authenticates the medicines before they are supplied to the stores, ensuring they meet quality standards. Additionally, the medicines are procured from CPSU suppliers and GMP-compliant manufacturers.
The Jan Aushadhi Scheme plays a crucial role in improving access to affordable and quality healthcare for all sections of society, particularly the economically weaker sections. It aims to reduce the financial burden of healthcare and promote the use of generic medicines, which are equally effective but significantly cheaper than branded counterparts.