Branded as "Amazon Pharmacy", one of India's largest online marketplaces has confirmed the launch of online sales of over-the-counter drugs, prescribed medicines, basic health equipment, and herbal Indian medicines. However, the company did not reveal the start date of the service when announcing the development on Friday.
The move comes amid the softening stance of the Indian government towards the online sale of medicines, as it declared on 24 March this year that the delivery of medicines through e-commerce is an essential service.
Amazon's entry into the medicine segment, which will be started in the tech city of Bengaluru, is also likely to result in a tough battle for the already-established online Indian pharmacies, such as NetMeds and Medlife. The role of e-pharmacies in India has grown during the pandemic and lockdown provisions in the country.
E-pharmacies and online drug sales regulations are still in the formulation stage in India. In November last year, India's drug regulator, the Drugs Controller General of India (DCGI), ordered all states and federally-administered territories to forbid the sale of medicines through unlicensed online platforms until the draft rules for regulating e-pharmacies are finalised.
The FICCI - India's top industry body - estimated on Friday that the e-pharma sector will be able to tap approximately 70 million households by 2025 from the current level of 8.8 million.
In a white paper titled "E-pharmacies at Covid-19 Frontline: Fighting the Odds, Serving the Nation", the body says that it saw approximately $700 million in investments flowing into this segment in 2020.
India has more than 50 e-pharmacy platforms, which provide jobs to more than 30,000 people.
Meanwhile, in a similar development in May, the e-commerce giant announced its foray into the food delivery segment in select areas in India's IT capital of Bengaluru. The food delivery sector is currently dominated by the likes of Swiggy and Zomato in India.