The Bill, which seeks to replace the Medical Council of India (MCI) with a new commission to steer medical education in the country, had met last month.
In March, the government had formed the GoM to address the concerns over membership issues raised by a few states and doctors.
The draft Bill will be placed before the Cabinet after the GoM submits its report, a senior government official said.
Besides Panagariya, the panel included Prime Minister's Additional Principal Secretary P K Mishra, Niti Aayog CEO Amitabh Kant and Union Health Secretary.
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After approval, the National Medical Commission will become the main regulatory body and take over all roles and responsibilities of MCI.
The new body will have eminent doctors and experts on board to ensure quality is at par with global standards.
Last year, a parliamentary committee had called for revamp of MCI, saying it had failed in its role as a regulator which has led to a deterioration in India's medical education.