Healthcare/Biotech
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Updated on 11 Nov 2025, 12:44 pm
Reviewed By
Akshat Lakshkar | Whalesbook News Team
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India's Drugs Controller General of India (DCGI) has ordered a nationwide inspection of pharmaceutical manufacturers to enforce upgraded quality standards, a move prompted by concerns over drug safety following child deaths linked to contaminated Indian cough syrups. State drug authorities are actively inspecting thousands of micro, small, and medium enterprises (MSMEs), issuing warning and closure notices to non-compliant firms. This crackdown marks the end of a one-year grace period for MSMEs to adopt the revised Schedule M, which outlines mandatory Good Manufacturing Practices (GMP) aligned with global standards like WHO GMP. The urgency stems from incidents where Indian cough syrups, found to contain toxic diethylene glycol (DEG), caused fatalities in The Gambia, Uzbekistan, and parts of India. Investigations revealed severe lapses, including poor hygiene and use of substandard materials. The new guidelines require significant upgrades in facilities, quality systems, and supply chain traceability. However, many MSMEs, representing about 80% of India's 10,000+ pharma units, struggle with the substantial capital investment and operational changes needed, facing challenges in accessing funding and personnel training. A compliance deadline of January 1, 2026, looms, with some firms having missed optional extension application deadlines.
Impact: This crackdown will significantly impact the Indian pharmaceutical sector, especially smaller players. Companies unable to meet the stringent quality and manufacturing standards may face closure, leading to potential supply chain disruptions and consolidation within the industry. This could increase compliance costs, but also enhance the global reputation of Indian pharmaceuticals if successful. Rating: 8/10
Difficult Terms: * **DCGI (Drugs Controller General of India):** The apex drug regulatory authority in India, responsible for ensuring the quality, safety, and efficacy of drugs and medical devices. * **GMP (Good Manufacturing Practices):** A system for ensuring that products are consistently produced and controlled according to quality standards. It is designed to minimize the risks involved in any pharmaceutical production. * **Schedule M:** A set of rules and guidelines under India's Drugs and Cosmetics Act that specifies the requirements for Good Manufacturing Practices (GMP) for pharmaceutical products. * **MSMEs (Micro, Small and Medium Enterprises):** Businesses classified based on their investment in plant and machinery and annual turnover, playing a crucial role in the Indian economy. * **DEG (Diethylene Glycol):** A toxic industrial solvent found as a contaminant in some pharmaceutical products, which can cause severe kidney damage and death, especially in children.