Pharma regulation: A complex problem

Medicines are critical for human wellbeing but its regulation, which is inherently complex, is even more challenging in India

Many consumer goods contain an asymmetric information problem. It is unreasonable to think that a consumer will run tests and verify the purity and soundness of a product, especially in the case of food and drugs. As an example, on March 13, there were reports of a big fake drugs racket in Delhi. Government intervention could potentially be useful in addressing this “market failure”, if commensurate state capacity can be created. On March 12, the Government of India notified the Uniform Code for Pharmaceutical Marketing Practices (UCPMP) 2024. Though well intended, this is an odd document, as it is a