Does Government price capping benefit the Indian Consumer?Recently was reading about the National Pharmaceutical Pricing Authority in India and how it's cut down the prices of stents and implants for the benefit of the common man. This high cost looks more due to a combination of inflated MRPs and bulk discounts for the purchaser.
If we think about this in the healthcare sector, its good for the patients(consumers). What about the other service sectors like IT, gadget accessories (for instance some of the branded ear-phones for mobiles looks so delicate but are quite expensive), laptops, alcohol, branded clothing or even fast food MNC. Does it really cost so much or is there a huge built-in margin in the other sectors also?
When the NPPA(Government) can set the price cap on medical items, Why can't the government do the same for the other sectors too and help the common man?
So, my question is, Can price capping work in India? Can we insist on this for other sectors too so that the burden of expenditure is lessened on the average Indian Consumer?