NITI Aayog Engages Pharmaceutical Industry to Tackle Drug Quality Issues

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Senior government officials engaged with leaders from India’s pharmaceutical sector to tackle rising concerns about drug quality, regulatory enforcement, and systemic inefficiencies. The session was chaired by Dr. V.K. Paul, Member (Health), and focused on aligning India’s pharmaceutical manufacturing standards with global best practices. At the heart of the dialogue was a shared urgency: the need to ensure consistent production of high-quality, globally accepted medicines.

Drug Quality Alerts Spark Industry Alarm

Industry representatives voiced deep concerns as authorities increasingly flagged “Not of Standard Quality” (NSQ) alerts in the sector. Many pointed to poor technical education and a shortage of skilled manpower as core issues, claiming that underqualified staff often fail to meet audit standards set by regulators—ultimately compromising drug quality.

MSMEs Seek Policy Support Amid Compliance Strain

Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of India’s pharmaceutical manufacturing landscape, outlined their unique challenges. They highlighted constraints in upgrading infrastructure, conducting stability studies, and complying with evolving regulatory demands—primarily due to limited financial resources. Representatives called for targeted policy and financial support, along with more structured dialogue between MSME associations and policymakers.

Dr. Rajesh Gupta of Laghu Udyog Bharati defended the sector, noting that while MSMEs produce 97.3% of India’s drugs, they account for only 2.64% of NSQ cases, which often result in no patient harm. He criticized the lack of scrutiny faced by larger companies, despite frequent product recalls.

Pricing Pressure Poses Additional Hurdles

Another major concern raised was the low price ceilings imposed by the National Pharmaceutical Pricing Authority (NPPA). Industry stakeholders argued that these restrictive price controls are undermining the financial sustainability of producing quality drugs—especially for MSMEs already operating on thin margins.

Regulatory Authority Stresses Strict GMP Enforcement

Drug Controller General Dr. Rajeev Singh Raghuvanshi reaffirmed the government’s commitment to enforcing Good Manufacturing Practices (GMP). He announced that the authorities would take stricter action against NSQ violations, including suspending licenses until companies achieve compliance.

Open Dialogue with Industry Bodies

The consultation saw participation from leading industry bodies. These included the Indian Pharmaceutical Alliance (IPA), Indian Drug Manufacturers’ Association (IDMA), and Laghu Udyog Bharati. As reported by knnindia.co.in, officials concluded the session by inviting all stakeholders to submit written feedback. This move signaled a willingness for continued engagement and possible policy evolution.