The central government has said that drugs manufactured in the country are cheaper than many that are imported, after withdrawing customs duty exemptions for up to 76 foreign medicines. The Centre said India manufactured many of the drugs in the list, which included medication for treating cancer, haemophilia and AIDS. Reports said the withdrawal of duty exemption raised prices of these drugs by between 10-25%.

Experts told The Economic Times that the move was to encourage local producers of the drugs, after the pharmaceutical industry lobbied to do away with such concessions. Indian Drug Manufacturers Association head S Veeramani said the price rise will be minimal, and that many drug-makers could absorb the increase in duty. “There is no need to panic – patients won’t be affected by this,” he said.

A health ministry official said the government might examine cases where an individual life-saving drug is not manufactured in India. An official told PTI that India was capable of manufacturing these drugs, and has been exporting them to 200 countries. Of the 76 drugs on the list, around 60 are ingredients used to make drugs, while about 15 are life-saving medicines.