HomeIndiaEconomy & BusinessThe Jan Aushadhi Scheme (Affordable Medicines) Explained

The Jan Aushadhi Scheme (Affordable Medicines) Explained

The Jan Aushadhi Scheme, formally the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), is a Government of India programme that sells quality generic medicines at much lower prices than branded equivalents through dedicated stores called Janaushadhi Kendras. The scheme is run by the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers and is implemented by the Pharmaceuticals and Medical Devices Bureau of India (PMBI).

Because medicines are among the largest items of out-of-pocket health spending for Indian families, the Jan Aushadhi Scheme tries to make affordable treatment available for common conditions such as diabetes, hypertension, infections, heart disease and cancer. The network has expanded to thousands of stores in nearly every district of the country.

Attribute Details
Full name Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP)
Started 2008 as the Jan Aushadhi Campaign; relaunched in 2015; renamed PMBJP in 2016
Ministry and department Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers
Implementing agency Pharmaceuticals and Medical Devices Bureau of India (PMBI)
Outlets Janaushadhi Kendras, now numbering well over ten thousand
Product basket More than 1,700 medicines and around 300 surgical and consumable items
Price benefit Typically about 50 per cent to 80 per cent below branded market prices
Observed annually Jan Aushadhi Diwas on 7 March
Mobile app Janaushadhi Sugam, for locating Kendras and comparing prices

Key Takeaways

  • The Pradhan Mantri Bhartiya Janaushadhi Pariyojana is a Government of India scheme that supplies quality generic medicines through Janaushadhi Kendras at prices far below those of branded drugs.
  • The Pharmaceuticals and Medical Devices Bureau of India (PMBI), set up in 2008 under the Department of Pharmaceuticals, is the agency that procures, supplies and markets Jan Aushadhi products.
  • Every batch of medicine sold under the Jan Aushadhi Scheme is tested at a laboratory accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) before it is released.
  • The Jan Aushadhi product basket covers more than 1,700 medicines and a range of surgical items, nutraceuticals and medical devices.
  • Janaushadhi Suvidha oxo-biodegradable sanitary napkins are sold at one rupee per pad at Janaushadhi Kendras.
  • A generic medicine contains the same active ingredient, strength and dosage form as its branded counterpart and differs mainly in name and price.

What is the Jan Aushadhi Scheme?

The Jan Aushadhi Scheme is a public-sector initiative that makes generic medicines available at affordable prices through a network of dedicated retail stores. The word Jan Aushadhi translates roughly as medicine for the people, and the stores are branded as Pradhan Mantri Bhartiya Janaushadhi Kendras.

The scheme works on a basic idea. Many branded medicines are priced far above the cost of the active ingredient because of marketing, distribution margins and brand premiums. By buying medicines in bulk from quality-assured manufacturers and selling them under their generic names, the government can pass on a large part of that difference to patients.

The scheme does not provide free medicines. It makes them cheaper, and it complements free-drug policies run by state governments in public hospitals and the insurance cover offered under other health programmes.

How did the Jan Aushadhi Scheme begin?

The Jan Aushadhi Scheme began in 2008 as the Jan Aushadhi Campaign, launched by the Department of Pharmaceuticals with the first stores opened in Amritsar, Punjab. The early campaign relied mostly on state governments to open stores in government hospitals, and growth was modest.

The programme was reorganised in 2015 as the Pradhan Mantri Jan Aushadhi Yojana (PMJAY), with a wider range of operators allowed to open stores. In 2016 it was renamed the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), and the push to expand the network became more systematic.

From BPPI to PMBI

The implementing agency was originally set up in 2008 as the Bureau of Pharma Public Sector Undertakings of India (BPPI), sponsored by the Department of Pharmaceuticals and the central pharmaceutical public sector undertakings. In 2019 it was renamed the Pharmaceuticals and Medical Devices Bureau of India (PMBI) to reflect its wider mandate over medical devices. It functions as a society registered under the Societies Registration Act.

What are generic medicines?

Generic medicines are drugs that contain the same active pharmaceutical ingredient, in the same strength, dosage form and route of administration, as a branded medicine and are expected to work in the same way. They are usually sold under the chemical name of the ingredient rather than under a brand name.

Once the patent on an original drug expires, other manufacturers can make and sell the same compound. Regulators require such products to show bioequivalence with the reference drug, meaning the body absorbs them at a comparable rate and extent. Because generic makers do not need to repeat the original research and spend less on promotion, the selling price can be much lower.

Generic versus branded generic

A branded generic is the same type of off-patent medicine, but sold under a company’s own trade name with a higher price. Jan Aushadhi products are true generics sold under their chemical names, so a patient looking for a drug such as paracetamol or metformin finds it by that name.

How does the Jan Aushadhi Scheme work?

The Jan Aushadhi Scheme works by having the PMBI procure medicines from selected manufacturers, test them for quality, store them in central and regional warehouses and supply them to Janaushadhi Kendras, which sell them to the public at fixed low prices. Each step is designed to keep costs low and quality consistent.

  • Procurement: PMBI invites tenders from manufacturers that hold good manufacturing practice certification and selects suppliers on the basis of quality and price.
  • Quality testing: Each batch is tested at a laboratory accredited by NABL before it is dispatched, and only batches that pass are released for sale.
  • Warehousing and logistics: Stock moves through a central warehouse and regional warehouses to distributors and then to the stores.
  • Retail: Kendras sell the products with printed prices that are fixed and substantially lower than market equivalents.
  • Information: The Janaushadhi Sugam mobile application lets users find the nearest Kendra, search for a medicine and compare the generic price with the branded one.

The pricing principle is that Jan Aushadhi medicines are priced at a level well below the average price of the leading branded products of the same composition. The saving varies by drug but is often very large for long-term therapies.

Who can open a Janaushadhi Kendra?

A Janaushadhi Kendra can be opened by individual entrepreneurs, registered pharmacists, doctors, hospitals, non-governmental organisations, trusts, charitable institutions, self-help groups and state-appointed agencies. The applicant must either hold a pharmacy qualification or employ a registered pharmacist who will run the store.

The store needs a minimum floor area, a storage arrangement suitable for medicines and the required drug licence from the state drug controller. Applications are submitted online on the official Jan Aushadhi portal.

Incentives for Kendra owners

The scheme has offered financial incentives to make the business viable. These include a trade margin on the printed price of medicines, a monthly incentive linked to sales volume, and one-time assistance for furniture, computers and other set-up costs. Higher support has been available for women entrepreneurs, applicants from Scheduled Castes and Scheduled Tribes, persons with disabilities and applicants from certain hilly, island and aspirational districts. The exact amounts have been revised from time to time.

What products are sold under the Jan Aushadhi Scheme?

The Jan Aushadhi Scheme sells a product basket of more than 1,700 medicines, along with surgical items, consumables, nutraceuticals, ayurvedic products and medical devices. The range covers the major therapeutic groups used in everyday treatment and chronic care.

Category Examples of coverage
Cardiovascular Medicines for blood pressure, cholesterol and heart conditions
Anti-diabetic Oral drugs for managing type 2 diabetes
Anti-infective Antibiotics, antifungals and antivirals
Gastrointestinal Acid-reducing and digestive medicines
Pain and inflammation Painkillers and anti-inflammatory drugs
Oncology Selected anti-cancer medicines
Supplements Vitamins, minerals and nutraceuticals
Surgical and devices Bandages, syringes, masks, gloves and other disposables
Women’s hygiene Janaushadhi Suvidha sanitary napkins

The list is revised regularly as new products are added after testing and tender processes.

What is Janaushadhi Suvidha?

Janaushadhi Suvidha is the brand name of oxo-biodegradable sanitary napkins sold at Janaushadhi Kendras at the price of one rupee per pad. The product was introduced in 2018 to improve menstrual hygiene among women and girls who find commercial napkins costly.

Making sanitary products available alongside medicines also brings women into the Kendras and helps to normalise conversations about menstrual health. The napkins are intended for use across different regions, including rural areas where access to hygiene products is limited.

How much can patients save under the Jan Aushadhi Scheme?

Patients can save roughly half to four-fifths of what they would pay for the branded version of the same medicine, depending on the drug. The saving is most noticeable for long-term therapies, where a household may buy the same tablets every month for years.

The government has estimated that the scheme saves citizens a substantial amount of money each year compared with branded prices. The actual amount varies with sales volumes and the mix of medicines sold, so it is better understood as a pattern than as a fixed figure.

Why medicine costs matter

Out-of-pocket spending on health is a major burden in India, and medicines account for a large share of it. Families with a chronic patient can fall into debt because of recurring drug bills. Lower prices at Janaushadhi Kendras reduce that burden and can improve adherence to treatment, because patients are less likely to skip doses to save money.

Is the quality of Jan Aushadhi medicines assured?

Yes, quality is assured through a multi-stage process: suppliers must hold good manufacturing practice certification, and each batch is tested at a NABL-accredited laboratory before sale. The PMBI states that medicines which fail to meet prescribed standards are not supplied to the stores.

Generic drugs in India are also regulated by the Central Drugs Standard Control Organisation (CDSCO) and state drug controllers under the Drugs and Cosmetics Act, 1940. Manufacturing licences, labelling rules and post-market surveillance apply to generic and branded drugs alike.

A common concern among patients is that a lower price means lower quality. Pharmacologists note that price differences between generics and brands mostly reflect marketing and distribution costs, not the active ingredient. Patients should still follow their doctor’s advice, and doctors may prescribe by generic name to make substitution easy.

How is the Jan Aushadhi Scheme different from branded pharmacies?

The Jan Aushadhi Scheme differs from ordinary branded pharmacies in that its stores sell only products supplied by the PMBI, at government-set prices, under generic names. A private chemist stocks hundreds of brands and may sell them at the maximum retail price or with discounts.

Feature Janaushadhi Kendra Typical private pharmacy
Product type Generic medicines under chemical names Mostly branded and branded generic medicines
Supply source PMBI-approved suppliers via central network Multiple distributors and companies
Pricing Fixed, much lower prices Printed maximum retail price, with possible discounts
Quality check Batch-wise testing at NABL-accredited labs Regulatory standards of the manufacturer
Range Focused product basket of essential drugs Very wide range including all brands

The narrower range also means a particular brand may not be available at a Kendra, although a generic with the same composition usually is.

What are the challenges facing the Jan Aushadhi Scheme?

The main challenges facing the Jan Aushadhi Scheme are limited awareness among patients, hesitation among some doctors to prescribe by generic name, occasional stock gaps and the viability of stores in low-sales areas. These issues affect how much of the potential saving actually reaches people.

  • Awareness: Many patients do not know that generic equivalents exist or that Kendras are nearby.
  • Prescription habits: Prescriptions written by brand name make it harder for patients to choose generics; regulators have encouraged generic prescribing.
  • Supply chain: Maintaining a steady supply of all items to remote locations requires strong logistics.
  • Store economics: Kendra owners earn from margins and incentives, so stores in low-footfall locations can struggle.
  • Perception of quality: The belief that lower price means lower quality still persists and needs to be addressed with information.

The government responds through awareness drives, including the annual Jan Aushadhi Diwas on 7 March, and through wider listing of hospital-based Kendras.

Bottom Line

The Jan Aushadhi Scheme shows how pooled public procurement and quality testing can bring down the price of everyday medicines in India. Its impact depends on patients knowing about generics, doctors prescribing them and a reliable supply reaching every Kendra. For households managing chronic illness, the lower prices can make long-term treatment more affordable.

Frequently Asked Questions

What is the full form of PMBJP?

PMBJP stands for Pradhan Mantri Bhartiya Janaushadhi Pariyojana. It is the Government of India scheme that sells quality generic medicines through Janaushadhi Kendras at low prices. The scheme is run by the Department of Pharmaceuticals and implemented by the PMBI.

Are Jan Aushadhi medicines as effective as branded medicines?

Jan Aushadhi medicines are generic drugs that contain the same active ingredient, strength and dosage form as the branded versions, so they are expected to work in the same way. The PMBI buys from manufacturers with good manufacturing practice certification and tests each batch at a NABL-accredited laboratory. Patients with specific concerns should consult their doctor.

How much cheaper are Jan Aushadhi medicines?

Jan Aushadhi medicines are typically about half to four-fifths cheaper than branded medicines of the same composition. The exact saving depends on the drug and the brand it is compared with. The Janaushadhi Sugam app can be used to compare the generic price with the branded price.

Who can open a Janaushadhi Kendra?

Individual entrepreneurs, registered pharmacists, doctors, hospitals, non-governmental organisations, trusts and self-help groups can open a Janaushadhi Kendra. The applicant needs a qualified pharmacist, suitable premises and a valid drug licence. Applications are made through the official Jan Aushadhi portal, and extra incentives have been offered to women and applicants from disadvantaged groups.

What is sold at a Janaushadhi Kendra besides medicines?

Besides medicines, a Janaushadhi Kendra sells surgical items, consumables, nutraceuticals and medical devices. It also stocks Janaushadhi Suvidha sanitary napkins at one rupee per pad. The product list is updated from time to time as new items are added.

Which agency runs the Jan Aushadhi Scheme?

The Pharmaceuticals and Medical Devices Bureau of India (PMBI) runs the Jan Aushadhi Scheme under the Department of Pharmaceuticals. The PMBI was set up in 2008 as the Bureau of Pharma Public Sector Undertakings of India and was renamed in 2019. It handles procurement, quality control, supply and promotion of products for the stores.

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