The Ministry also claimed it has already initiated several steps to plug loopholes and strengthen the functioning of CDSCO, the country's top body handling approval of drugs, and the Parliamentary committee report criticising its functioning was being studied.
"After receipt of inputs from Central Drugs Standards Control Organisation on the report and thorough its scrutiny, appropriate action will be taken by the ministry wherever required," said a Ministry note.
It said several steps have already been initiated to strengthen the CDSCO and streamline its functioning.
The committee report had pointed to a collusive nexus between drug manufacturers, officials of Drugs Control Organisation and medical experts in granting approvals to new drugs and said drugs banned, discarded or withdrawn in developed countries are in circulation in India.
The committee report on health also pointed to serious lapses and irregularities in grant of approvals to new drugs and pointed out that 33 such drugs were approved without conducting clinical trials on Indian patients.