The Ministry of Health has issued a show cause notice to at least 20 companies, including Flipkart, Amazon, and Reliance Netmeds, for selling medicines online. The Indian pharmaceuticals market is the third largest in terms of volume and 13th largest in terms of value globally. The growth in this space will be driven by high disease burden, good economic growth, improved healthcare infrastructure, and improved healthcare financing.
E-Pharmacy
E-pharmacy or online pharmacy refers to a platform that allows customers to purchase medicines and other healthcare products online. E-pharmacies operate through websites or mobile apps where users can upload their prescriptions, select the products they need, and place orders. The products are then delivered to the customers’ doorstep leading to such mode becoming increasingly popular due to their convenience, accessibility, and cost-effectiveness.
Draft E-Pharmacy Rules
The draft e-pharmacy rules were introduced in 2018 to regulate the sector. However, the regulations were not enforced. Since 2015, e-pharmacies have recorded losses year-on-year. Both e-pharmacies and offline retail pharmacists have realized that it is futile to stick to any one way of doing business.
Importance
E-pharmacies are a part of the government’s intent to build digital infrastructure as a key pillar driving India’s long-term growth strategy. The potential of India’s over $344 million e-pharmacy market is promising and is expected to grow at an enviable 40-45% owing to its surging internet connectivity, mobile phone penetration, government initiatives, and rising investments.
Challenges
Indian regulations don’t allow the supply of prescription medicines by unregistered pharmacies. E-pharmacies have been accused of operating in the shadows and undertaking unlicensed drug and medicine sales. Laws regulating e-pharmacies require that pharmacies, both online and offline, be registered with the central drugs regulator CDSCO and have permits from state regulators for sales and distribution.
Laws Regulating E-Pharmacies
The Drugs Controller General of India (DCGI) first banned the online sale of medicines in 2015. The latest draft New Drugs, Medical Devices, and Cosmetics Bill, 2022, has comprehensive provisions including periodic inspections, complaint redressal mechanisms, monitoring e-pharmacies, and others. The Federation of Indian Chambers of Commerce and Industry developed a self-regulation code for e-pharmacies in 2016.
All-India Organisation of Chemists and Druggists Threatens a Country-Wide Agitation Against E-Pharmacies
The All-India Organisation of Chemists and Druggists has threatened a country-wide agitation against e-pharmacies. Stakeholders in government have often argued that banning e-pharmacies would not be a viable option as the demand for online delivery of drugs is burgeoning, and instead of banning businesses, the sector should be regulated. In an ecosystem that is moving towards a hybrid mode, all eyes are on the Ministry of Health, which will have to effectively regulate the new way of doing e-commerce in the drug space.
MCQs on Potential and Challenges of E-Pharmacies in India
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What is an e-pharmacy?
A. An online platform that allows customers to purchase medicines and healthcare products.
B. A physical pharmacy store where customers can purchase medicines and healthcare products.
C. A government agency that regulates the sale of medicines and healthcare products.
D. An organization that advocates for the interests of traditional pharmacies.
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What challenges do e-pharmacies pose in India?
A. Safety, authenticity, and quality of medicines sold online.
B. Accessibility and affordability of medicines sold online.
C. Shortage of skilled workers in the e-pharmacy industry.
D. Limited internet connectivity and mobile phone penetration in rural areas.
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What is the potential growth rate of the e-pharmacy market in India?
A. 20-25%.
B. 30-35%.
C. 40-45%.
D. 50-55%.
