"There will be no investments in research and the quality of medicines will be affected," said BS Ajai Kumar, CEO of Healthcare Global Enterprises.
The government said on February 27 it has brought 42 non-scheduled anti-cancer drugs under price control, capping trade margin at 30 percent, which would reduce their retail prices by up to 85 percent.
BS Ajaikumar, chairman and CEO of Healthcare Global Enterprises, discussed the impact of the above development on the healthcare sector.
"At a superficial level, it may look like it is going to have a positive impact with the cost coming down but in the long-term, it will be detrimental to the cancer patients," Ajaikumar told CNBC-TV18.
"There will be no investments in research and the second thing is whenever we took price control, the quality of medicines and everything will be affected," he added.
With regards to the price control, Ajaikumar said: "I think this nation is going in the wrong direction by putting such price control. No nation has ever prospered by putting price control."Source: CNBC-TV18