The minister for health and family welfare, Mr Ghulam Nabi Azad, has stated that the policy of the Government is to promote affordable generic drugs in the country. While making his point in the parliament on May 07, 2013, Mr Azad mentioned that the health ministry has published a National List of Essential Medicines (NLEM), 2011 with the primary objective to promote rational use of medicines considering the three important aspects i.e. cost, safety and efficacy. Furthermore, it promotes prescription by generic names. "The government has also approved the National Pharmaceutical Pricing Policy (NPPP-2012) which brings 348 essential drugs in NLEM 2011 under price control. The Government has also included a new initiative for free supply of essential generic medicines in public health facilities during the 12th plan period," added the minister.

With the aim to make available quality generic medicines at affordable prices to all, a country wide campaign in the name of 'Jan Aushadhi Campaign' has been initiated by the Department of Pharmaceuticals in collaboration with the State Governments, by way of opening of Jan Aushadhi Generic Drug Stores in the Government Hospitals and supply of medicines through Central Pharma PSUs. Medicines are provided free of cost to admitted patients in the Central Government hospitals. In OPD of these hospitals, medicines are dispensed free of cost as per the hospital formulary.

The government also provides free medicines under the various national health programmes like Anti-Malaria and Anti-TB Programmes. It also provides financial grants to the states under the National Rural Health Mission for procurement of medicines for free supply to the people. States also procure medicines out of their own budget for free supply to the people.