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CCI says drug prices high in India due to unreasonable trade margins

Indian healthcare sector is prone to various industry practices which have the effect of choking competition

Subhomoy Bhattacharjee  |  New Delhi 

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The (CCI) in a policy note has said are often high in India because resort to “unreasonable” trade margins.

The regulator, however, stopped short of suggesting price controls. Instead, the note makes a case for the central and state governments to go for large-scale procurement of drugs and other medical supplies to push down prices.

The anti-trust regulator also notes that the Indian is prone to “various industry practices which have the effect of choking competition and are detrimental to consumer interest”. It goes on to add that these practices often just satisfy the rules of competition but harm consumers. This is a reference to cases where the has imposed penalty but which has been set aside by courts on appeal. “Such practices may not always violate the provisions of the Act, but they create conditions that do not allow markets to work effectively.”

says high in India due to unreasonable trade margins.

First Published: Thu, October 25 2018. 00:23 IST
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