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India Set to Modernize Pharmacy Laws: DCC Proposes Major Licensing Deregulation

Pharm'Up 2 min read

The Drugs Consultative Committee (DCC) has taken a landmark step toward slashing bureaucratic red tape for India’s retail pharmacy sector. During its 68th meeting on March 20, 2026, the committee referred four major “performance-based” reform proposals to a specialized sub-committee for final review.

These changes, tracked via NITI Aayog’s HLC-Sameeksha portal, aim to transition the industry from a rigid, paperwork-heavy compliance model to one that prioritizes operational outcomes and global best practices.


Four Pillars of the Proposed Reform

The proposed amendments seek to overhaul rules that have remained largely static for decades:

  • Removal of Pharmacist Name from Licenses: In a move to simplify staff transitions, the DCC suggests that the name of the “competent person in-charge” no longer needs to be printed on the physical pharmacy license. This prevents the need for a license re-issue every time a staff member changes.
  • Flexible Premises Standards: Instead of mandatory square footage and fixed shelf counts, pharmacies would be judged on performance-based standards. This allows smaller operators in tier-2 and tier-3 cities to operate effectively in smaller or non-traditional spaces as long as safety and storage quality are met.
  • 15-Day Notification Window: Pharmacies would no longer need prior approval to appoint a qualified person in-charge. Instead, they can begin operations and notify the Licensing Authority within 15 days.
  • Scrapping Mandatory Lease Registration: The requirement for a formally registered lease deed—often a major bottleneck for small businesses—is proposed to be removed to accommodate shorter or more informal rental arrangements.

The Path to Implementation

The dedicated sub-committee is currently assessing how these changes will fit into the Drugs and Cosmetics Act, 1940. Once their report is submitted, the DCC will deliberate on the final legal language before making formal recommendations to the central government.

“These reforms represent a shift toward trust-based governance, focusing on the quality of pharmacy services rather than just the dimensions of the shop floor.”

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