How India’s Affordable Medicine Revolution Through Jan Aushadhi Is Empowering MSMEs and Changing Healthcare

In a country where out-of-pocket healthcare expenses push millions into financial stress, one government scheme is quietly rewriting the rules. It's not just about cheaper medicines it's about economic access, dignity, and grassroots entrepreneurship.

Welcome to the world of Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), better known as Jan Aushadhi.

A Pharmacy Revolution With People at the Centre

Originally launched in 2008 and revamped in 2016, the Jan Aushadhi scheme was built on a simple but powerful idea: everyone deserves access to safe, effective, and affordable medicines.

The scheme introduced Jan Aushadhi Kendras government-supported pharmacy outlets that sell generic medicines at prices 50% to 90% lower than branded alternatives. These aren’t subpar drugs either. They're quality-tested, bioequivalent alternatives approved by the Central Drugs Standard Control Organization (CDSCO).

And the impact? Over the last 11 years, Indian citizens have saved more than ₹38,000 crore just by switching to generics through these Kendras.

Jan Aushadhi (PMBJP)

What Makes Jan Aushadhi Different?

Unlike your average chemist, a Jan Aushadhi Kendra stocks a broader basket of essential healthcare products all at deeply subsidized prices.

The product mix includes:

• Over 2,100 generic medicines across all major therapeutic categories are anti-diabetics, cardiac, antibiotics, anti-cancer drugs, and more.
• 300+ surgical and medical consumables like syringes, test kits, glucometer strips, and dressings.
• Public hygiene products, including the Suvidha sanitary pad (₹1/piece), multivitamins, protein powders, and Ayurvedic wellness products.

In essence, the Kendras go beyond medicine they’re making basic healthcare and hygiene accessible to the masses.

The Supply Chain Touches Everyone — And That’s the Point

One of the lesser-known strengths of the PMBJP scheme is how it weaves together multiple sectors and actors:

• Pharma MSMEs and PSUs manufacture the generics.
• Entrepreneurs, SHGs, NGOs, and cooperatives operate the stores.
• Government logistics ensure timely delivery and stock availability.

This supply chain doesn’t just improve access. It creates real livelihood opportunities especially in Tier 2 and Tier 3 towns, and in tribal, aspirational, or remote districts.

Even Primary Agricultural Credit Societies (PACS) can now run Kendras, linking India’s farming economy with the healthcare retail network.

Why Generic Medicines Matter Especially in India

India has one of the highest out-of-pocket spending rates for healthcare in the world. Medicines alone make up a significant chunk of that. Many families skip treatments, cut doses, or rely on home remedies not by choice, but by financial compulsion.

Jan Aushadhi aims to change that. With prices slashed by up to 90%, it’s giving people a real alternative.

For example:

• A common antibiotic that costs ₹320 at a branded pharmacy may cost only ₹36 at a Jan Aushadhi Kendra.
• Essential diabetes or heart medications can cost less than half — without compromising efficacy.

For patients, that’s life-changing. For public health, that’s game-changing.

Big Numbers, Bigger Goals

The scale of the PMBJP expansion speaks volumes. In 2014, there were barely 80 Jan Aushadhi stores across India. By mid-2025, that number had exploded to 16,912 outlets and counting.

The government's target? 25,000 stores by 2027.

This is backed by serious funding. Budget allocations have grown year by year — from ₹100 crore in FY22–23 to ₹182.7 crore in FY24–25. Sales too are soaring, crossing ₹2,000 crore (MRP value) in 2024–25 alone.

And this isn’t just a Delhi or Mumbai story. States like Bihar, Odisha, Assam, and Chhattisgarh are seeing strong growth in store openings, often led by local women entrepreneurs and SHGs.

MSMEs: The Silent Pillar Behind the Scheme

The Jan Aushadhi ecosystem is a rare example of policy-driven MSME enablement in the health sector.

• Small-scale manufacturers get reliable government demand.
• Local transporters and warehouse owners benefit from logistics contracts.
• Rural women and youth are building stable pharmacy businesses with as little as ₹2–5 lakh in investment.
• SHGs and NGOs are leveraging it to add social value while building income.

StartupFlora has observed that many of these micro-entrepreneurs don’t come from a business background. But with the scheme’s built-in support financial assistance, guaranteed margins, government training — they grow into confident, community-rooted business owners.

What’s Next? Opening the Doors to More Entrepreneurs

By now, you’re probably wondering — can I open one of these stores?
What kind of investment does it take?
Is it really viable as a business?

We’ll cover all of that (and more) in Part 2 of this series. From eligibility and paperwork to grants, margins, and success stories we’ll break down how to open your own Jan Aushadhi Kendra.

StartupFlora: Your Expert Guide for MSME Growth

StartupFlora helps MSMEs and startups leverage top government schemes like the PLI Scheme and CGTMSE Scheme with expert funding guidance. Our specialists also provide smart financial tools like a Tax Calculator for Businesses, helping you estimate savings, apply for subsidies, and optimize funding through accurate tax and compliance support.

Final Thought

Jan Aushadhi isn’t just a government scheme. It’s a people-powered movement combining affordability, access, and entrepreneurship.

Whether you're a pharmacist, a self-help group, a rural NGO, or just someone looking to build a purposeful business this is your chance to create impact that lasts.