India's booming beauty industry has a serious problem of quality. New rules target this menace

Mint

5 days ago

New Delhi: India has tightened rules to ensure stricter testing and labelling of cosmetics to enhance safety, check counterfeit products and clearly define spurious items, said two officials aware of the development.
A failure to comply with the new rules introduced by the health and family welfare ministry will result in the suspension and cancellation of licences, according to the officials cited earlier and documents reviewed by Mint.
The Cosmetics (Amendment) Rules, 2025 were finalized and notified on 29 July after a detailed consultative process with the relevant stakeholders and further consultation with the Drugs Technical Advisory Board, a top drug advisory panel, said the first official quoted earlier. The changes include setting up a dedicated Central Cosmetics Laboratory to test products before they hit the shelves.
India's cosmetics market—including skin, hair and oral care, fragrances, and colour products—is estimated at $20 billion, growing at an annualized rate of 25%, according to India Brand Equity Foundation. New brands have been mushrooming as rising incomes spur consumption. However, that also brought a myriad of new products claiming to provide unverified benefits, especially when peddled by celebrities and influencers. Stricter rules aim to curb exaggerated claims and ensure higher standards that will also benefit exports.
"The cosmetic industry in India is largely under-regulated, particularly concerning product claims. Unlike in many other countries, companies here can make unsubstantiated assertions—such as promising to make a person several shades fairer or claiming to stop hair fall—that are often misleading,' said Dr Dinesh Kumar Devaraj, president, Indian Association of Dermatologists, Venereologists & Leprologists (IADVL), Tamil Nadu. 'This is where regulatory checks are critically needed.'
Queries sent to the health ministry spokesperson and cosmetic manufacturers, including Hindustan Unilever Ltd, on Friday remained unanswered.
Cosmetics in India are regulated under the Drugs and Cosmetics Act, 1940, and the Drugs and Cosmetics Rules, 1945. The Central Drugs Standard Control Organization (CDSCO) is the main regulatory body responsible for implementing the rules.
'Lots of clerical and administrative corrections have been made in cosmetics rules,' the first official quoted earlier said. 'These comprehensive measures signal a serious commitment by the government to prioritize consumer safety and bring greater transparency to India's cosmetics industry.'
Manufacturers will now have to keep detailed records of all raw materials and manufactured batches for three years or six months after the batch expires, whichever is later. This improved record-keeping will significantly enhance the traceability of products in case of a safety concern.
The new regulations require that labels on cosmetics to be exported meet the legal standards of the destination country.
A cornerstone of the new policy is the Central Cosmetics Laboratory to test samples. It will also be an appellate laboratory, ensuring a centralized and rigorous approach to product quality.
The rules, for the first time, empower the State Licensing Authority to suspend or cancel a license if a company fails to comply with any of its conditions or with any provision of the Act or the rules. This order will be issued in writing after giving the licencee an opportunity to show cause and be heard. However, a manufacturer whose licence is suspended or cancelled has the right to appeal the decision to the state government within 90 days, ensuring due process is followed.
The new regulations specifically define 'spurious cosmetics' under section 17D of the Act, strengthening the government's ability to crack down on counterfeit items. That provides a stronger legal basis for regulatory bodies to crack down on such items.
The rules also seek to streamline international trade. 'The cosmetic is meant for export, then the label on the package or container of cosmetic shall comply with the law of the country to which the cosmetic is to be exported,' the notification said.
Similarly, a specific provision has been added to allow for a code number instead of the manufacturer's name and address on the label if the importer requires it.
These changes are designed to protect consumers from unsafe and counterfeit cosmetic products while strengthening the regulatory framework, the second official quoted earlier said.
According to the L'Oréal India spokesperson, the updated cosmetic regulations enhance clarity and compliance, '…particularly the provision for export labelling, which significantly streamlines international trade, benefiting our exports from India to 25 countries'. Citing that 95% of its products sold in India are locally manufactured, the spokesperson said these 'progressive changes further support our 'Make in India' endeavors and our mission to provide high-quality beauty solutions both domestically and internationally'.
The industry has also come under scrutiny after complaints regarding mercury-based products, Mint reported earlier. Products such as skin-lightening creams, 'anti-ageing solutions' for freckles and dark spots and certain makeup items are known to contain the toxic element.
Dr. Devaraj said another concern is the misuse of steroids in cosmetics for skin brightening, which can lead to significant dermatological damage. 'As a doctor, I can easily distinguish between skin that has been brightened by such steroid use and skin that is healthy,' he said. 'The issue of wrong or non-existent labelling also needs to be addressed. Furthermore, there is a complete lack of regulation on pricing, which allows for a dramatic disparity in costs for similar products.'
The validation provided by celebrities and social media influencers heavily influences consumers, especially first-time buyers, according to him. 'Given our vast population, a small fraction of buyers can generate significant profit for a company, reducing the need for repeat business,' said Dr. Devaraj. 'This trend has been amplified by the rise in online sales and paid promotions post-Covid.'