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Jul 15, 2025

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3. Emergence and Growth of Online Pharmacies in India 
 

India’s first wave of e-pharmacies appeared around 2013–15 with Netmeds, 1mg and PharmEasy. Covid-19 lockdowns then turbo-charged demand. According to IMARC, the Indian online pharmacy market reached USD 3.18 billion in 2024 and is projected to USD 12.71 billion by 2033 at a 16.65 % CAGR. 

 

The business models differ: 

  • Inventory model – the platform owns and ships stock (e.g., One Bharat Pharmacy, PharmEasy). 

  • Marketplace model – it connects licensed local chemists to customers (e.g., Tata 1mg). 

  • Hybrid/franchise model – a blend of the above, often with franchised micro-fulfilment centres. 

Scale has encouraged consolidation: PharmEasy’s ₹ 4,546-crore takeover of diagnostics giant Thyrocare in 2021 created a vertically-integrated digital health chain spanning tests, tele-consults and medicines

4. Advantages of Online Pharmacies 
 

Advantage 

Why it matters 

Illustration 

Convenience & reach 

Doorstep delivery eliminates long travel and queues. 

e-Sanjeevani tele-prescriptions can be filled online; the platform has logged 3.6 billion consultations since 2020. 

Price transparency & discounts 

Digital catalogues let users compare generics vs. brands, see expiry dates, and access cashback schemes. 

Average savings on chronic-disease refills reported by Tata 1mg users: 12–18 %. 

Continuous supply for chronic care 

Auto-refill subscriptions reduce missed doses for diabetes, hypertension and HIV. 

PharmEasy ships 80 % of its orders to repeat buyers in Tier 2–3 towns. 

Data-driven adherence & counselling 

In-app reminders and tele-pharmacist chat support improve compliance. 

Apollo 24 

Catalyst for broader digital health 

Platforms bundle lab tests, tele-consults and insurance, creating a one-stop health stack. 

Thyrocare integration gives PharmEasy users discounted diagnostics in 3,700 pincodes  

 

5. Challenges and Concerns 
 

  1. Regulatory grey zones. India still lacks a notified e-pharmacy law. Draft amendments to the Drugs & Cosmetics Rules (2018) are pending; in Nov 2023 the Delhi High Court demanded a policy within eight weeks. 

  1. Quality and counterfeit risk. Ensuring cold-chain integrity and pharmacist oversight during last-mile delivery is harder online. Academic reviews flag gaps in verifying Schedule H/X prescriptions and storage conditions . 

  1. Data privacy. Draft rules would mandate local storage and disclosure only for public-health reasons, but enforcement mechanisms remain unclear. 

  1. Threat to small chemists. The All India Organisation of Chemists & Druggists (AIOCD) called a nationwide strike for March 2025, citing deep-discount “predatory” pricing. 

  1. Risk of misuse. Multiple uploads of the same e-prescription or self-medication via symptom-checker apps can fuel antibiotic resistance, warns the Indian Journal of Medical Ethics . 

6. Government Policies and Regulations 
 

Regulatory Instrument 

Status 

Key Provisions 

Gaps 

Draft e-Pharmacy Rules 2018 

Pending notification 

Mandatory portal registration; 24/7 support; periodic inspections; no drug ads 

Silent on illegal cross-border sites, fake prescriptions, model-wise FDI limits 

Drugs, Medical Devices & Cosmetics Bill 2023 

Before Parliament 

Empowers Centre to frame rules for online sale and distribution 

No immediate compliance timelines 

IT Act 2000 & Consumer-Protection E-commerce Rules 2020 

In force 

Intermediary liability and consumer-rights framework 

Not tailored to medicine-specific risks 

Ayushman Bharat Digital Mission (ABDM) 

Operational since 2021 

ABHA health ID, interoperability of e-prescriptions, teleconsult & e-pharmacy linkage  

Voluntary onboarding; variable state adoption 


Overall, policy is moving, but clarity on licensing, pharmacist presence, cross-border sales and data security is still evolving. 

7. Comparative Analysis 
 

  • Traditional chemist vs. e-pharmacy 

  • Pros offline: immediate purchase, personal advice, no delivery wait. 

  • Cons offline: limited stock, higher mark-ups, restricted opening hours, travel costs. 

  • Pros online: 24×7 ordering, larger SKU catalogue, digital payment & records, home delivery. 

  • Cons online: delivery lag in emergencies, counterfeit risk, loss of personal counselling. 

  • Global parallels 

  • United States – Amazon Pharmacy/PillPack: Amazon’s 2018 PillPack buy showed how logistics, subscription packaging and Prime membership can shake incumbents. 

  • Sweden – Apotea: 40 % of all Swedish prescriptions are now filled online, enabled by real-time e-prescription rails. 

  • China – Alibaba Health: Tight integration with AliPay and state insurance has made drug e-commerce mainstream. 

These cases suggest that when digital payment rails, e-prescriptions and strong logistics converge, online pharmacies rapidly capture share. 
 

 

8. Future Outlook and Recommendations 
 

Growth trajectory. If current 16–17 % CAGR continues, India’s e-pharmacy market could exceed USD 18 billion by 2033, serving 250–300 million unique users and handling a quarter of prescription volumes. The next decade will likely see: 

  • Hyper-local dark stores enabling two-hour delivery in Tier 2–4 towns. 

  • AI-driven adherence programs bundled with insurance. 

  • Integration of e-pharmacy APIs into ABDM’s health-records backbone, allowing one-click refills from tele-consult platforms. 

Recommendations 

Stakeholder 

Action 

Policymakers 

Notify e-pharmacy rules with clear licensing, cold-chain norms and prescription-upload authentication; create a national track-and-trace barcode system. 

Entrepreneurs & investors 

Focus on Tier 3–4 logistics, elder-care medication management, and vernacular interfaces to expand beyond urban early adopters. 

Traditional chemists 

Adopt omni-channel models—storefront + online ordering—and leverage local trust for value-added services (BP checks, vaccination). 

Public health planners 

Use e-pharmacies to stock essential drugs for chronic-disease programmes and integrate with schemes like Jan Aushadhi for subsidised generics. 

Data-security watchdogs 

Enforce privacy-by-design audits and mandate breach-disclosure protocols to build long-term user trust. 


9. Conclusion 
 

India’s healthcare challenge is less about cutting-edge surgeries and more about last-mile access to everyday medicines.  

 

Online pharmacies have already demonstrated that they can bridge geography, reduce prices and catalyse a broader digital-health ecosystem.  

 

Yet their promise will only be realised if regulation matures, quality is policed and small chemists are brought into the digital fold.  

 

With thoughtful policy and responsible innovation, e-pharmacy could indeed become a cornerstone of equitable, affordable healthcare access across India’s cities, towns and villages.

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