Roundtable highlights need for reforms to boost innovation and market growth
The Dialogue, a leading public policy think tank, recently convened a high-level roundtable on “Industry Outlook on Policy Frameworks for the Cosmetics Sector” to discuss regulatory challenges and reforms needed in India’s cosmetics industry. The event brought together key stakeholders, including representatives from industry bodies, cosmetics companies, legal experts, and civil society organisations.
A major point of discussion was the need for an independent regulatory framework for cosmetics, separate from the framework governing drugs. Participants also emphasised reforms in the product approval process and improved coordination between central and state authorities.
Stakeholders acknowledged the government’s past efforts to ensure consumer welfare, affordability, and innovation in the sector. However, they raised concerns about the current legal framework, which regulates drugs and cosmetics under a common law. Industry leaders argued that this structure hampers innovation and increases compliance burdens.
Dev Bajpai, Advisor and Former Whole-Time Director & Chief Legal Officer at Hindustan Unilever, stressed the importance of a dedicated regulatory framework. He said, “The cosmetics sector is a key contributor to the economy, offering essential products at affordable prices. Considering its growing importance, a separate legal framework is needed to support innovation while maintaining consumer safety.” He further suggested shifting from pre-market licensing to post-market notification, which would align with global best practices and encourage investment.
Amit Bhasin, Chief Legal Officer at Marico, echoed similar concerns, noting that the common framework for drugs and cosmetics creates regulatory bottlenecks. He emphasised that a modernised, industry-specific regulatory system would enable small and medium enterprises (SMEs) to scale up and compete globally.
Kazim Rizvi, Founding Director of The Dialogue, highlighted the need for continued stakeholder engagement to ensure a competitive and consumer-friendly sector. “The Indian cosmetics industry is evolving rapidly, and regulations must keep pace. The government should involve key stakeholders, including small businesses and consumer bodies, in shaping policies that drive growth,” he said.
Participants pointed to global examples, such as the EU, South Korea, and ASEAN countries, where cosmetics regulations have been tailored to industry-specific needs. They recommended that India adopt a notification-based, post-market surveillance system for product approvals. Such a shift would streamline regulatory processes, foster innovation, and maintain high consumer safety standards.
As the industry expands, experts believe that a dedicated legal framework could unlock further investments, boost consumer confidence, and position Indian cosmetics brands for sustained growth on the global stage.
