A parliamentary standing committee in New Delhi on Friday recommended capping trade mark-ups on essential medicines at 20 percent, citing steep gaps between manufacturers' landing prices and retail costs for life-saving drugs. The panel forwarded its findings to India's Ministry of Health and Family Welfare.

The committee highlighted tenecteplase, a clot-dissolving drug used in heart attack and stroke care, as a central example. Members noted that the drug's maximum retail price far exceeded its landing price, allowing intermediaries to take large margins on treatments many patients cannot afford.

The National Pharmaceutical Pricing Authority currently regulates prices for scheduled drugs under the Drug Price Control Order, but many formulations fall outside direct price controls. The panel urged the authority and the Department of Pharmaceuticals to examine mark-ups across the supply chain and to strengthen enforcement.

Patient advocacy groups and generic manufacturers welcomed the recommendation. Industry bodies representing distributors warned that a blanket cap could disrupt supply in rural areas.

The health ministry said it would review the committee's report before framing any policy response. The recommendation adds to a wider push in India to lower out-of-pocket spending on medicines, which accounts for a large share of household health costs. Health ministry officials said any changes would require consultation with state drug regulators and trade associations before implementation.