The recent crackdown on 20 e-pharmacies has a Chinese connection. The government reportedly is uncomfortable with the growing dominance of Chinese presence with its estimated Rs 20,000 crore investments towards the online sale of medicines. Regardless of the Chinese angle, e-pharmacies have long been accused of operating in the shadows and undertaking unlicensed drug and medicine sales. The Drugs Controller General of India (DCGI) first banned the online sale of medicines in December 2015. But nearly eight years later, it continues to be a grey area. 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. All it needs now is a good finisher.
For a long time, the trade body, the Confederation of All India Traders (CAIT), representing retail chemists, has accused online players of predatory pricing and violating the standing provisions under the Drugs and Cosmetics Acts and Rules. In 2016, the Federation of Indian Chambers of Commerce and Industry developed a self-regulation code for e-pharmacies, but the onslaught continued and with good reason. Indian regulations don’t allow the supply of prescription medicines by unregistered pharmacies. Even if pharmacies are registered with the central drugs regulator CDSCO, they need permits from state regulators for sales and distribution. Online pharmacies fulfil orders from registered and licensed offline pharmacies. Still, it’s a fact that these intermediaries are operating without necessary permits, prompting the CDSCO and state regulators to prohibit their operations until regulations are in place.
But an outright ban on heaving e-pharmacies to the hellbox must be avoided. It goes against the government’s intent of building digital infrastructure as a key pillar driving India’s long-term growth strategy. Moreover, the potential of India’s over $344 million e-pharmacy market is promising. It’s expected to grow at an enviable 40–45%, thanks to surging internet connectivity, mobile phone penetration, government initiatives and rising investments. While regulating drugs and medicines is crucial to public health and safety, the efficient and legitimate functioning of e-pharmacies can be ensured with comprehensive norms. It’s the lack of unambiguous laws regulating, controlling and monitoring online players that can lead to an adverse effect on the health of the nation.