by Roger Bate, Dinesh Thakur, Amir Attaran
American Enterprise Institute
December 19, 2013
What began as a well-intentioned policy to serve Indians’ health by keeping essential medicines affordable has ended in an incoherent and dangerous policy jumble, where Indian companies succeed either by submitting to severe price controls that force them to compromise quality and harm Indian patients’ health, or by innovating to escape the price controls so that they are free to overcharge Indian patients exactly as foreign companies are said to do. Meanwhile, the quality of drugs made for export in India is persistently unreliable.