Govt notifies norms to skip test licences for drug R&D to boost ease of doing business

The Union Health Ministry has eased pharmaceutical regulations, allowing companies to start drug development and low-risk clinical studies via online intimation to CDSCO, cutting approval timelines, reducing regulatory burden, and boosting research and innovation in the Indian pharma sector

New Delhi: Pharma companies will no longer ne required to seek a test licence and may proceed with pharmaceutical development upon submitting an online intimation to CDSCO, except in certain cases, as part of broad simplication notified by the Union Health Ministry.

Union Health Ministry has notified key amendments to the New Drugs and Clinical Trials (NDCT) Rules, 2019, aimed at simplifying regulatory processes, reducing approval timelines, and enabling faster conduct of clinical research and pharmaceutical development in the country.

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The amendment is line with the directions of Prime Minister Narendra Modi to reduce regulatory burden and promote Ease of Doing Business, the ministry sais Under the existing regulatory framework, pharmaceutical companies are required to obtain a test licence from the Central Drugs Standard Control Organization (CDSCO) for the manufacture of small quantities of drugs intended for examination, research, or analysis purposes.

Through the notified amendments, this licensing requirement for non-commercial manufacture has been replaced with a prior-intimation mechanism.

As a result, the industry will no longer be required to seek a test licence and may proceed with pharmaceutical development upon submitting an online intimation to CDSCO, except in the case of a limited category of high-risk drugs, including cytotoxic drugs, narcotic drugs, and psychotropic substances.

This reform is expected to lead to a minimum saving of 90 days in the drug development life cycle, providing a significant boost to pharmaceutical research and innovation.

Furthermore, for categories where test licences continue to be applicable, the statutory processing timeline has been reduced from 90 days to 45 days.

Considering that CDSCO processes approximately 30,000 to 35,000 test licence applications annually, the reform is expected to substantially reduce regulatory burden and benefit a large number of stakeholders.

In another important step to expedite clinical research, the requirement of obtaining prior permission for certain categories of low-risk Bioavailability/Bioequivalence (BA/BE) studies has been dispensed with.

Such studies may now be initiated on the basis of a simple online intimation to CDSCO, enabling faster commencement of studies, particularly for the generic pharmaceutical industry. CDSCO processes around 4,000 to 4,500 BA/BE study applications every year, and the revised mechanism is expected to significantly reduce procedural delays.

To ensure smooth and seamless implementation of these changes, dedicated online modules will be made available on the National Single Window System (NSWS) and the SUGAM portal, allowing industry to submit intimations in a transparent and hassle-free manner.

Overall, these regulatory reforms are expected to provide substantial benefits to stakeholders while ensuring public health and safety, the ministry said.

By significantly reducing timelines for regulatory processing, the amendments will facilitate quicker initiation of BA/BE studies, testing, and examination of drugs for research purposes, and minimise delays across the drug development and approval continuum, it said.

The reforms will also enable the Central Drugs Standard Control Organization (CDSCO) to optimise utilisation of its existing manpower, thereby enhancing the efficiency and effectiveness of regulatory oversight. These measures underscore the Government of India’s commitment to continuous, trust-based regulatory reforms in the pharmaceutical sector, in line with the Jan Vishwas Siddhant and the broader Ease of Doing Business framework.

The initiative aims to promote R&D-led growth of the Indian pharmaceutical industry, align domestic regulations with global best practices, and strengthen India’s position as a preferred global destination for pharmaceutical research and development.