Traceability pays back in many ways

S Swaminathan, CEO, GS1 India explains to Express Pharma the broader benefits of the expanded QR code mandate, and how traceability pays back in many ways

The Union Health Ministry has extended the QR code and barcode mandate to four additional categories of life-saving drugs, building on the existing framework covering the top 300 pharma brands. What does the expanded mandate mean for pharmaceutical manufacturers and healthcare providers?

It simply means more medicines will now carry product identifiers in the form of QR codes, and gradually the entire healthcare system will be covered. For manufacturers, this is about preparing their packaging and data systems to meet the requirement, while for healthcare providers, it gives a simple way to check if a medicine is genuine before it reaches patients. Overall, it is another step toward safer and more transparent supply chains. Verification will now happen at every level – from pharmacies to warehouses to hospitals, making the supply chain safer and more transparent overall.

Will this expanded mandate eliminate counterfeit medicines, even though QR codes have been digitally copied in the past?

It is a wrong notion that QR codes alone can stop counterfeiting. QR codes or 2D barcodes are meant for capturing and linking the product with its data. Their role is to connect the physical pack with digital information. When linked to a proper traceability system, they help track the flow of medicines and make it easier to spot irregularities. The mandate builds this foundation, but the real strength comes from how well the codes are implemented and connected to reliable data.

How much will such mandates add to the average spend of pharma companies on such security features?

Costs vary widely and there is no single average. The main change is printing 2D codes and adding variable data like batch details and expiry, so the incremental cost is small if serialisation systems already exist. Firms that already export to regulated markets will not need to experience extra expenditure. Smaller manufacturers and first-time adopters will have to bear the initial costs for equipment, software and training etc. Over time, better traceability brings savings from fewer recalls, fewer reprints and smoother operations. 

How can GS1 standards enable end-to-end drug traceability, from manufacturing and distribution to dispensing?

GS1 standards give every product, shipment and location a unique ID. A product ID on the pack, a shipment ID on the box and a location ID at each facility let everyone record the same facts in the same way. When these IDs are printed as scannable codes and linked to a data record, every movement becomes an accessible and verifiable event. For instance, a medicine can be followed from the production line to the distributor, to the pharmacy and finally dispensed to the patient. Any mismatch or unexpected stop can be monitored. In short, unique IDs plus an end-to-end traceability system create a clear and trusted trail across the whole supply chain.

Beyond regulatory compliance, what are the other benefits that pharma companies can gain from traceability data?

Traceability pays back in many ways. Recalls become faster and far more precise, so only affected packs could be pulled back. Inventory becomes visible across the supply chain, reducing expiry losses and stock outs. Companies can spot any diversion and safeguard their brand. Operations run smoother and more efficiently. And when healthcare providers and patients can verify a medicine instantly, trust grows.

Can you give examples of how global GS1 standards have supported traceability across healthcare supply chains?

GS1 standards have been instrumental in strengthening healthcare supply chain traceability worldwide. In the European Union, GS1 DataMatrix barcodes are mandated under the ‘Falsified Medicines Directive’ to verify medicines at the point of dispensing. Nigeria uses GS1 serialisation to combat counterfeit drugs through ‘NAFDAC’. In France, hospitals apply GS1 identifiers to track medical devices and medicines, ensuring compliance and patient safety. Similarly, the UK NHS “Scan4Safety” programme leverages GS1 barcodes to reduce errors and improve inventory management. 

Importantly, GS1 2D barcodes are now recommended or mandated in healthcare regulations across more than 70 countries, showing how trusted product identity and interoperability are enabling safer healthcare and more resilient supply chains globally. 

Will digital product identification become the backbone of India’s future pharma compliance ecosystem?

Yes. Digital IDs give every medicine a digital, scannable identity that works in both physical and digital systems. With a national drug registry and electronic health records coming online, these IDs will let regulators, distributors and pharmacists read the same trusted data at every step. That makes inspections easier and dispensing safer. In short, a unique digital identity is not just a compliance tool; it rather becomes the foundation that links manufacturing, distribution and patient care in a single, reliable system.  

How can India’s policy makers make these mandates more enforceable and effective?

The need is to focus on making the data usable, not just mandatory. The healthcare ecosystem requires a unique identification system backed by global standards for trusted product records and for every scan to show accurate information. 

Additionally, it is vital to ensure all participants use the system for warehousing, distribution, point of sale and recalls. Promotion of common standards and registry connectivity should also fall in place so data is interoperable across the chain. We must also support MSMEs with technical help, affordable solutions and capacity building programs. 

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