ABC analysis of drugs of the medical stores of the largest tertiary care hospital of the Armed Forces revealed that out of 1536 items in the drug list considered for the study, 6.77% (104) drugs consumed 70.03% and 19.27% (296) drugs consumed 19.98% of total expenditure, the total amounting to only 400 drugs of the total inventory consuming approximately 90% of the operating budget of the hospital towards expendable medical stores, the remaining 73.95% (1136) drugs consuming only 10% of the total expenditure.