The government said on Wednesday it has brought 42 non-scheduled anti-cancer drugs under price control, capping trade margin at 30 percent, which would reduce their retail prices by up to 85 percent.

BS Ajaikumar, chairman & CEO of Healthcare Global Enterprises, discussed the impact of the above development on the healthcare sector.

"At a superficial level, it may look like it is going to have a positive impact with the cost coming down but in the long-term, it will be detrimental to the cancer patients," Ajaikumar told CNBC-TV18 on Thursday.

“There will be no investments in research and the second thing is whenever we took price control, the quality of medicines and everything will be affected,” he added.

With regards to the price control, Ajaikumar said, “I think this nation is going in the wrong direction by putting such price control. No nation has ever prospered by putting price control.”