Govt-run pharmacies gear up for a makeover

The Centre plans to upgrade high-performing Jan Aushadhi Kendras into modern flagship outlets with a better drug portfolio, redesigned store layouts and enhanced credit facilities

New Delhi: The Centre plans to upgrade its best-performing Jan Aushadhi Kendras, or government-backed retail pharmacies, into modern flagship outlets with better medicine supplies, expanded credit facilities and enhanced promotional support.

The outlets will be selected based on sales, growth potential and location, with preference for stores near hospitals and other high-footfall medical centres, according to two government officials and a document reviewed by Mint.

This initiative aims to improve product availability and raise standards across its network of affordable generic drug outlets, at a time when the government seeks to expand the store network to 25,000 by March 2027, up from 21,663 currently operational.

To qualify, pharmacies must meet monthly turnover benchmarks of ₹10 lakh in metros, ₹7.5 lakh in non-metro cities with populations exceeding one million and ₹3 lakh in other urban centres.

The Pharmaceuticals & Medical Devices Bureau of India (PMBI), which has proposed the overhaul, will provide these outlets with priority supplies of the top 400 medicines, digital promotional screens, point-of-purchase branding materials and prominent visual banners on PMBI.

The pharmacies, set up under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), provide generic medicines, surgical consumables and wellness products at substantially lower prices than branded alternatives.

“We want them to store most drugs that we have, have better store layout and better credit, monitoring, etc… We cannot do this for all the stores as they may not have sales,” the first official said.

A circular issued by PMBI's chief executive says the Model Jan Aushadhi Modern Outlets will serve as examples for other pharmacies by "demonstrating best practices in customer service, stock management, minimising product expiry and effective use of point of sale (POS) systems”.

In response to Mint's query, a Department of Pharmaceuticals spokesperson said the approach was to develop high-performing outlets into benchmark establishments that could demonstrate standardized operational practices.

"This approach is expected to create a cascading effect, enabling neighbouring kendras to progressively adopt improved operational practices and strengthen their product availability, customer satisfaction and sales performance aligned with the broader objective of promoting accessible, affordable and quality healthcare,” the spokesperson said.

The proposed model is "expected to strengthen consumer confidence and improve the overall experience of citizens accessing affordable generic medicines through the Jan Aushadhi network,” the spokesperson added.

Public health experts said modernising these outlets would strengthen affordable healthcare in India.

“Jan Aushadhi Kendras represent an important last-mile healthcare delivery model, taking affordable generic medicines closer to communities, particularly those who need them most. Expanding their reach, strengthening inventory and improving accessibility will make a meaningful difference,” said Dr Aashish Chaudhry, managing director of Aakash Healthcare in New Delhi.

About the Author

Priyanka Sharma is a journalist at Mint, where she covers the Union Ministry of Health and the pharmaceutical industry. Her work focuses on explaining government policies and how they impact healthcare and the medicine market in India. With 12 years of experience in journalism, she has built a reputation for providing clear and honest news on important health topics that affect the entire country.<br><br>Her educational background includes a journalism degree from the prestigious Indian Institute of Mass Communication (IIMC) and specialized training in public health from the Public Health Foundation of India. Before her current role at Mint, Priyanka worked with India Today, The Pioneer, and ANI. She also served as a lead consultant for the National Health Authority, which gave her firsthand knowledge of how the government manages large-scale health programmes.<br><br>Priyanka is based in New Delhi and is an avid traveller who loves visiting the mountains. She has a great interest in regional flavours, particularly South Indian food.