The Cosmetic Rules Amendment 2025 brings India closer to global norms with digital records, export-friendly labeling, stricter penalties, and central labs. Yet gaps in BIS standards, fragmented enforcement, and brand education remain hurdles to becoming a true global hub.
Dr. Saurabh Arora, Director, Auriga Research
So the 2025 Amendment is a good step, building further on quite well-clarified and systematic cosmetic rules that were brought out earlier in 2020. If we look at the changes, it revolves around one part—that they have allowed electronic records, which makes compliance and keeping the documentation easier for the manufacturer. That is a facilitatory factor. Another factor related to global regulation is that for exports, the labeling requirements have been permitted to only comply with the requirements of the importing country, and there are no domestic requirements other than the presence of the neutral code. That is a big relief because in exports, the requirements are very different for different countries. Earlier, we were being forced to put the product name, batch number, manufacturing date, etc., as per Indian regulation, in addition to the global requirements. This will definitely help with market access.
On the quality side, the provision of penalties like cancellation or suspension of license, which was absent earlier, brings seriousness to compliance. Also, notifying the central drug testing labs as central labs for the testing of cosmetics strengthens the quality infrastructure, bringing clarity to where the products will be tested.
In terms of standards, the framework clearly states that compliance has to be with Bureau of Indian Standards requirements. The gap is that BIS does not yet have standards for all the new products coming in. If we talk about skin masks or new formats like serums, these are not fully covered, and there is ambiguity on which standards to follow. That definitely needs to be addressed for better regulation in India.
What unique challenges does India face in ensuring safety, efficacy, and transparency in cosmetics compared to more mature markets like the EU or US?
First and foremost, as mentioned earlier, for some of the new formats, even the quality control parameters and specifications are not laid out. Those need to be brought in. Second, India has a large and highly fragmented market with thousands of brands and a vast geographic spread. Enforcing the law and educating companies is a much bigger challenge here than in mature markets.
The notification of central labs and the publishing of failed sample reports will have a positive impact on enforcement. But one major requirement is education, both for brands and manufacturers—on how to ensure compliance and what steps need to be followed. That will definitely help.
Many smaller cosmetic brands are mushrooming across India. How can they realistically balance affordability with the cost of credible testing and certification?
Well, I feel these are unavoidable. If you don’t have proper testing and certification for your product, you are lying to the customer, and you are taking great regulatory and personal risk by bringing this product into the market. This should not be optional.
In terms of cost, it is not even huge. Even if someone gets 5,000 pieces made in one batch, the testing adds just a few rupees per product. Testing must be done. If smaller brands don’t know about it, they should demand it from their manufacturers, and consumers should also demand it.
Proper development, testing, and certification of products is fundamental. There should be no talk of balancing affordability with skipping compliance; it is as good as selling empty bottles if a product is not tested or safe.
Globally, there is rising consumer demand for “clean beauty,” cruelty-free testing, and evidence-based claims. How are Indian manufacturers adapting to these trends?
India obviously follows global trends. BIS has adopted the ban on animal testing for cosmetics as per ISO and European Union norms. All responsible, good-quality brands have built this into their product development, R&D, and manufacturing cycles using clean ingredients, clean formulas, and testing on humans for safety and claims, without involving animals.
We already have sufficient capability and capacity within India to support R&D and cruelty-free testing. Larger and more responsible brands with regulatory and quality teams are aware of this and are making use of it. Demand for these services is growing steadily.
In terms of new-age technologies, we are seeing AI imaging and AI-based 3D imaging systems being used to substantiate claims. Instead of manual evaluation of changes in skin or benefits, it is all done programmatically using AI algorithms, which brings objectivity and removes subjectivity. Beyond this, ultrasound imaging is being used to track skin improvement, studies on skin microbiomes are advancing, and mass spectroscopy techniques are being used to look at amino acids and vitamins produced by the microbiome to support healthy skin.
All of this is cutting-edge and is helping develop safe, efficacious products. The consensus is that consumers want results, and the industry is aligning around that.
Do you see India emerging as a global hub for safe, compliant cosmetic manufacturing? What policy or infrastructure shifts are needed to make this a reality?
I definitely see this happening because there is great overlap in the capabilities needed for pharmaceutical and cosmetic manufacturing. Our strengths in GMP, formulation development, and compliance with global regulation put us in a strong position to become the skincare provider of the world alongside pharmaceuticals.
What is needed is government support similar to what Korea did for K-beauty. A consolidated effort can be built around making Indian skincare a globally recognized brand. Ayurveda-based skincare could be one pillar, but a modern approach must also be taken to create a genre of skincare that the world recognizes. If we can generate hype like Korea did with support from the government, Bollywood, and the media, “iBeauty” can become a significant global force.
Globally, India is already recognized for wonderful hair. If that perception can be consciously built upon through branding and positioning, it could elevate Indian cosmetics to the next level.
Empower your business. Get practical tips, market insights, and growth strategies delivered to your inbox
By continuing you agree to our Privacy Policy & Terms & Conditions