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Until few decades ago, Diabetes was generally seen as a problem in developed countries. However with changing lifestyle and diet diabetes has emerged as an important public health concern in developing countries. As Diabetes is associated with many microvascular and macrovascular complications. Uncontrolled and untreated Diabetes mellitus is life threatening as well as finanacial burden. This study is intended to evaluate the affordability of the right medication to the right patient at the right time plays a pivotal role in better patient care. Cost of illness analysis (CIA) is defined as the evaluation and assessment of resource used in treating an illness. It comprises direct cost, indirect cost, intangible cost. Direct cost implies the cost generated by the resources used in treating the disease like expenditure of medical cost, hospital services and drugs. The largest components of medical expenditures are: hospital inpatient care, prescription medications to treat complications of diabetes, anti-diabetic agents and diabetes supplies, physician office visits, nursing/residential facility stays. Whereas Indirect costs include: increased absenteeism, reduced productivity while at work for the employed population, reduced productivity for those not in the labour force, inability to work as a result of disease-related disability and lost productive capacity due to early mortality , care giver cost and QOL.