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India's pharma growth hampered by regulatory bottlenecks, CDSCO reform planned

The government's Biopharma SHAKTI scheme aims to address critical gaps in drug approval capacity by establishing a dedicated scientific review team within the Central Drugs Standard Control Organisation, signalling recognition of regulatory constraints threatening India's pharmaceutical ambitions.

LSN India · 20 August 2026

India's pharma growth hampered by regulatory bottlenecks, CDSCO reform planned

India's pharmaceutical sector, long positioned as a global manufacturing powerhouse, faces significant headwinds from inadequate regulatory infrastructure, with the government moving to tackle the challenge through targeted institutional reform. Under the ₹10,000 crore Biopharma SHAKTI programme, authorities plan to establish a specialised scientific review cadre within the CDSCO, the nation's primary drug regulator, addressing longstanding capacity constraints that have slowed approvals and innovation.

The dedicated review unit represents a strategic acknowledgment that India's ability to nurture domestic pharmaceutical innovation and compete internationally hinges on modernising its regulatory apparatus. Bottlenecks in the drug approval process have created delays for developers seeking to launch new medicines and biologics, undermining the sector's competitiveness and dampening investor confidence in India's biopharma ecosystem.

The CDSCO has struggled to keep pace with rising application volumes as Indian companies increasingly pursue complex drug development across therapeutic categories. A focused scientific review team, comprising specialists with expertise in emerging pharmaceutical technologies, is expected to accelerate decision-making timelines while maintaining safety and efficacy standards.

Industry observers view the reform as a necessary structural intervention to align India's regulatory infrastructure with its stated ambitions to become a global innovation hub. The success of this initiative will likely determine whether India can retain pharmaceutical talent and investment domestically, or risks losing ground to competing jurisdictions with more nimble approval processes.