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Pradhan Mantri Jan Aushadhi Yojana: Making Healthcare Affordable for All

Why the Scheme is in News?

Prime Minister Shri Narendra Modi has commended the approval of permitting 2000 Primary Agricultural Credit Societies (PACS) to establish Pradhan Mantri Bhartiya Jan Aushadhi Kendras throughout the nation. According to Shri Modi, ensuring affordable availability of even the most expensive medications nationwide is a key objective of our government.

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The Pradhan Mantri Jan Aushadhi Yojana (PMJAY) is a flagship initiative of the Government of India aimed at providing affordable and quality generic medicines to all citizens. Launched in 2008, the scheme has gained significant traction in improving access to essential medicines, especially for the economically weaker sections of society.

The PMJAY not only ensures cost-effective healthcare but also promotes the use of generic drugs as an alternative to expensive branded medicines. This article explores the key features, benefits, and impact of the Pradhan Mantri Jan Aushadhi Yojana.

About Pradhan Mantri Jan Aushadhi Yojana

In a country as populous as India, access to affordable and quality healthcare is a significant concern for millions of people. Understanding the importance of making essential medicines accessible to all, the Government of India launched the Pradhan Mantri Jan Aushadhi Yojana (PMJAY) in 2008.

This ambitious initiative aims to provide affordable generic medicines to the masses through Jan Aushadhi stores across the country. To support the implementation of the scheme, a well-defined funding structure has been established. Additionally, the program has a wide range of beneficiaries who can avail of its benefits.

Key Objectives and Features:

The primary objective of the Pradhan Mantri Jan Aushadhi Yojana is to make quality generic medicines accessible to all citizens, irrespective of their socio-economic background. The scheme has several notable features:

1. Affordable Medicines: Under the PMJAY, generic medicines are made available at significantly lower prices compared to their branded counterparts. This reduction in cost ensures that the underprivileged sections of society can afford essential medications.

2. Quality Assurance: The Jan Aushadhi stores follow stringent quality control measures to ensure that the generic drugs meet the required standards. These medicines are sourced from reputed pharmaceutical manufacturers, ensuring their safety, efficacy, and reliability.

3. Extensive Network: The scheme has established a widespread network of Jan Aushadhi stores across the country, making it convenient for individuals to access affordable medicines. These stores are typically located in government hospitals, medical colleges, and other public places, ensuring easy availability.

4. Comprehensive Range of Medicines: The PMJAY covers a broad range of therapeutic categories, including cardiovascular diseases, diabetes, respiratory disorders, gastrointestinal issues, and more. This ensures that patients can avail themselves of essential medicines for various ailments at reasonable prices.

Benefits and Impact:

The Pradhan Mantri Jan Aushadhi Yojana has had a profound impact on the healthcare landscape of India. Some notable benefits and outcomes of the scheme are:

1. Affordability: The PMJAY has significantly reduced the financial burden on patients, especially those from economically weaker sections. By offering medicines at a fraction of their branded counterparts’ cost, the scheme has made healthcare more accessible and affordable.

2. Increased Access: The establishment of Jan Aushadhi stores in remote and underserved areas has improved access to quality medicines. This has been particularly beneficial for individuals residing in rural and semi-urban areas where access to healthcare facilities is limited.

3. Awareness and Education: The initiative has created awareness among patients and healthcare providers regarding the benefits of generic medicines. It has emphasized the importance of cost-effective treatment options without compromising on quality.

4. Encouraging the Pharmaceutical Industry: The PMJAY has encouraged the production and availability of generic medicines in the Indian pharmaceutical industry. This has led to increased competition, ultimately driving down prices and benefiting consumers.

Beneficiaries of PMJAY

The Pradhan Mantri Jan Aushadhi Yojana benefits a diverse group of people, making quality generic medicines accessible to all. The beneficiaries include:

  1. General Public: The scheme primarily targets the general public, especially the economically disadvantaged sections of society. By providing affordable generic medicines, PMJAY ensures that essential healthcare remains within reach, reducing the burden of healthcare expenses.
  2. Poor and Marginalized Communities: The scheme particularly benefits individuals from poor and marginalized communities who often struggle to afford expensive branded medicines. By offering generic alternatives, PMJAY empowers these communities to access critical medications at significantly lower prices.
  3. Underprivileged Sections: Jan Aushadhi stores cater to the needs of various underprivileged sections such as low-income groups, rural populations, and senior citizens. The availability of affordable medicines at these stores improves health outcomes and enhances the quality of life for these vulnerable groups.
  4. Government Health Institutions: PMJAY supports government healthcare institutions by ensuring a regular supply of quality generic medicines at affordable prices. This enables government hospitals and healthcare centers to provide cost-effective treatment to patients.
  5. Healthcare Professionals: The availability of affordable generic medicines through Jan Aushadhi stores benefits healthcare professionals by giving them access to a wider range of options while prescribing medications. This promotes rational and cost-effective prescribing practices.

Funding Structure of PMJAY

The Pradhan Mantri Jan Aushadhi Yojana operates on a unique funding structure that involves both government support and private sector participation. The government provides financial assistance to set up and run Jan Aushadhi stores. The funding support includes:

  1. Capital Subsidy: The government provides a one-time capital subsidy of up to 90% of the total project cost or a maximum of Rs. 2.5 lakhs (whichever is less) to entrepreneurs opening Jan Aushadhi stores.
  2. Operational Support: The government also provides a monthly incentive of up to Rs. 10,000 to Jan Aushadhi stores to meet their operating expenses. Additionally, the stores are allowed to retain a fixed percentage of the sales revenue to cover operational costs.
  3. Viability Gap Funding (VGF): The government provides Viability Gap Funding to support stores located in economically weaker areas. This ensures the availability of affordable medicines in remote and underserved regions.

Private sector participation is encouraged through Public-Private Partnership (PPP) models. Under these models, the government collaborates with private entities, including NGOs, charitable organizations, and individual entrepreneurs, to set up and manage Jan Aushadhi stores.


The Pradhan Mantri Jan Aushadhi Yojana has been a game-changer in providing affordable healthcare to all sections of society. By making quality generic medicines accessible and affordable, the scheme has improved the overall healthcare ecosystem in India. The PMJAY stands as a shining example of a government initiative that combines affordability, quality assurance, and extensive outreach to ensure the well-being of its citizens. With continued efforts and support, the scheme has the potential to further revolutionize healthcare accessibility in India and serve as a model for similar initiatives in other countries.

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