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In 2022, aiming to reduce medicine price, the Government of India (GoI) had contemplated its move to rationalise trade margins especially on widely used medicines. Drugs falling beyond the pale of price control could be included in the initial phase of this trade margin rationalisation (TMR). This was hoped to create a scenario where medicines could be offered to consumers at lower prices. While such decisions looked encouraging and beneficial, they could raise certain questions as well. Would the distribution margins really be that much higher in comparison with that of the manufacturer? What would this portend for the sector's future health? Why would the GoI act only on selected drugs and medical equipment instead of all? What had made the authorities to target a specific margin to rationalise?