A Kotak report warns that the Rs 5,700 crore liquid cough and cold segment, a key part of the Indian Pharmaceutical Market, could see volume decline as OTC demand shifts to prescription-only sales. | Photo Credit: ANUSHREE FADNAVIS

The cough and cold liquids market of the Indian Pharmaceutical Industry, valued at approximately Rs 5,700 crore, faces a serious risk of volume decline as the Indian government banned over-the-counter (OTC) sales of all syrups, including cough syrups, effective since Tuesday (June 16).

According to a Kotak report, the strict enforcement of this regulation means that all syrups will now be dispensed exclusively through legal prescriptions. The report highlighted that the low-growth liquid cough and cold segment currently accounts for 2.2 per cent of the overall Indian Pharmaceutical Market.

“In the low-growth liquid cough/cold segment (Rs 5,700 crore market size; 2.2% of IPM), the industry now faces a serious risk of volume decline, as not all prevailing OTC sales will translate into Rx sales. Over time, the market could consolidate with top brands in the segment, yet absolute sales are likely to be adversely impacted,” the report said.

Schedule K amendment ends OTC availability

The decision follows an amendment that removes the word ‘syrups’ from a category of drugs under Schedule K. The move effectively ends the OTC availability of these liquid medications. This means that pharmacies across the country can sell syrup-based drugs only to consumers who present a valid medical prescription.

Government authorities implemented this ban on the back of persistent concerns over misuse, weak quality standards, and unsupervised consumption of syrups.

Cough syrup segment dominates liquid market

The report noted that the cough oral liquids market comprises the bulk of this segment, valued at around Rs 4,700 crore. While the segment experienced a minor recovery after the government banned 14 fixed-dose combination cough syrups in June 2023, sales remained flat year-on-year in fiscal year 2026.

The report estimates that the “bulk of the sales of non-cough syrup brands would be largely via prescriptions. Hence, for now, we focus our attention largely on cough syrups.”

Prescription shift may impact pharma growth

The report compiled the sales data of cough and cold syrup brands that rank within the top 25 products for major pharmaceutical firms. The assessment revealed that even though many of these are technically prescription brands, consumers historically bought a material chunk of these products directly through the over-the-counter channel without presenting a prescription.

The broader implications of the policy change could slow down the recent momentum of the domestic pharmaceutical sector. Prior to this regulatory intervention, the Indian Pharmaceutical Market demonstrated strong growth over the past few quarters.

“While IPM growth was on a roll over the past few quarters, this regulation, if strictly implemented, can marginally curb IPM growth. For instance, if we assume a scenario wherein Rs 1,000 crore annual sales are lost, IPM growth can be impacted by 40-50 bps,” the report highlighted.

Published on June 18, 2026