Home/India/MarketsArticle
Markets

Chennai study reveals how India cut costs of diabetes drugs

India has managed to reduce diabetes drug prices through strategic legislation and domestic manufacturing, according to a study by Chennai diabetologists. This approach could guide other low- and middle-income countries facing similar challenges in drug affordability.

BRIC Team
By BRIC Team · BRIC.TV
Published Sep 20, 2026 · 2 min read · 140 views
Chennai study reveals how India cut costs of diabetes drugs

Key Takeaways

  • •India makes diabetes medications more affordable through strategic measures
  • •80% of global diabetes patients live in low- and middle-income countries
  • •India's pharmaceutical export role and patent laws lower drug prices
  • •Challenges include urban-rural disparities and quality of generics
  • •Strategies could help high-income countries with high drug prices

India has emerged as a model for making expensive diabetes medications more affordable. A study led by V. Mohan of Dr. Mohan’s Diabetes Specialities Centre, published in Diabetes Care, sheds light on strategies that could benefit other low- and middle-income countries.

The study highlights that of the 589 million adults worldwide living with diabetes, a staggering 80% reside in low- and middle-income countries (LMICs). Modern diabetes treatments, including GLP-1 receptor agonists and SGLT2 inhibitors, offer significant health benefits but remain financially out of reach for many. India’s success in maintaining low drug prices is attributed to its significant role as a pharmaceutical exporter and its legislative measures that prevent 'patent evergreening', thus facilitating the production of generic drugs.

India's focus on bolstering domestic manufacturing capacity is another key factor. The government has introduced incentive schemes to promote the local production of raw materials, with 26 molecules that were previously imported now being produced domestically. This strategic move aims to mitigate the impact of global trade policies on drug prices and raw material availability.

Despite these advancements, challenges persist. The study notes that while drugs like metformin and sulfonylureas are included in India's National List of Essential Medicines (NLEM), newer drugs such as DPP-4 inhibitors, SGLT2i, and GLP-1 receptor agonists are not. Initial high prices limited their uptake, but increased competition among domestic manufacturers has led to significant price reductions. For example, the cost of semaglutide has dropped, resulting in a surge in sales, although its monthly cost remains high relative to household income and is not covered by insurance, unlike in the U. S.

India's approach to making medications affordable includes quick availability of generic and biosimilar drugs, strategic regulatory and distribution strategies like the Jan Aushadi Kendras, and fostering market competition. These efforts have made drugs more accessible, the study notes.

Challenges and Future Directions

While India's model offers valuable lessons, the study acknowledges several challenges. Urban-rural disparities affect the distribution and availability of medicines, and stringent regulations may hinder drug innovation. There are also concerns about the quality differences between generics and the challenges of maintaining strict pharmacovigilance.

Moreover, the study points out the lack of formal evaluation of government schemes to assess their long-term impact on clinical outcomes. Despite these hurdles, the principles outlined in the study could benefit high-income countries grappling with high drug prices.

To improve access to affordable medicines, the study suggests several strategies: building local manufacturing capacity as a public health investment, balancing patent governance to facilitate access to new molecules, implementing structured price regulation, and ensuring good distribution networks at reasonable retail prices. Aligning pharmaceutical policy with health financing and ongoing monitoring of medicine quality, prices, prescription patterns, and patient access are also crucial.

#Health

Related Articles

NPCI delays UPI MDR charges rollout until after Diwali festival

NPCI delays UPI MDR charges rollout until after Diwali festival

The National Payments Corporation of India has delayed the implementation of the Merchant Discount Rate on UPI transactions over ₹2,000, initially set for October 15, to a date after Diwali. This decision follows traders' concerns that the fee could impact sales during the festive season.

Shagun Pandey

Oct 17, 2026•1 views
India's economy grows 7.8% in April-June 2026, PM Modi highlights reforms

India's economy grows 7.8% in April-June 2026, PM Modi highlights reforms

Prime Minister Narendra Modi highlighted India's 7.8% economic growth and over $700 billion in foreign-exchange reserves at the Bloomberg New Economy Forum. He emphasized reforms and global cooperation, stating India's growth benefits the world.

Daniel Brown

Oct 17, 2026•2 views
Bending Spoons' Strategic Moves Amid AI-Driven Software Shift

Bending Spoons' Strategic Moves Amid AI-Driven Software Shift

Bending Spoons, based in Milan, received a $330 million stake investment from Berkshire Hathaway, contributing to its market cap of about $30 billion. Their acquisition strategy, amid an AI-driven software shift, led to layoffs, highlighting challenges in maintaining competitiveness.

Rahul Sharma

Oct 17, 2026•2 views
IMFC chair highlights economic resilience as delegates exit over Russian presence

IMFC chair highlights economic resilience as delegates exit over Russian presence

IMFC chair Mohammed Al-Jadaan highlighted the global economy's resilience amid challenges, as delegates walked out on Russia's finance minister in Bangkok. The walkout underscores divisions over Russia's war in Ukraine, complicating international cooperation efforts.

Shagun Pandey

Oct 17, 2026•1 views
Mortgage refinancing in Russia surges 7x in 2026 after rate cuts

Mortgage refinancing in Russia surges 7x in 2026 after rate cuts

Mortgage refinancing in Russia increased sevenfold in 2026 due to the Central Bank's rate cuts from 21% to 14%. This trend, along with a shift towards mortgage-backed housing transactions, is expected to continue as demand remains strong.

Ramesh Gupta

Oct 17, 2026•1 views
Abu Dhabi Global Food Week secures Dh6.9B in deals, 97 agreements

Abu Dhabi Global Food Week secures Dh6.9B in deals, 97 agreements

Abu Dhabi's Global Food Week attracted 47,092 visitors and 2,580 exhibitors from 92 countries, signing 97 agreements worth Dh6.9 billion. The event emphasized international cooperation to enhance food security and agricultural innovation.

Utkarsh Aggrawal

Oct 17, 2026•1 views