Loan Licence Dropped for Outsource of Sterilization in Medical Device Regulations

Ø  Proposed amendments seek to simplify regulatory requirements, standardize testing fees and facilitate faster market access for eligible medical devices

Ø  Loan Licensing requirements removed for outsourced sterilization activities

·         Regulatory reforms: The Government has amended the Medical Devices Rules, 2017 to simplify regulatory procedures, improve transparency and accelerate access to advanced medical technologies.

·         Outsourced sterilization: Rule 44 has been amended to simplify licensing requirements for manufacturers outsourcing medical-device sterilization.

·         No separate loan licence: Manufacturers using a sterilization facility that already holds a valid licence under the Medical Devices Rules, 2017 will no longer need a separate loan licence for the outsourced sterilization activity.

·         Reduced compliance burden: The change eliminates duplication, lowers administrative and compliance costs and reduces approval timelines, particularly for manufacturers without in-house sterilization facilities.

·         Six-month transition: A six-month transition period has been provided for the new labelling requirement, allowing manufacturers time to modify packaging, labels and related processes.

·         Traceability retained: The reform simplifies licensing while maintaining an essential traceability mechanism for outsourced sterilization.

·         EU added to recognized jurisdictions: Rule 63 has been amended to include the European Union (EU) among stringent regulatory jurisdictions recognized for waiver of clinical investigation requirements.

·         Existing recognized jurisdictions: The list already includes the US, UK, Australia, Canada and Japan.

·         Clinical investigation waiver: Eligible medical devices without predicate devices that have already been approved in the EU can now benefit from the clinical investigation waiver, potentially speeding up their introduction in India.

·         Benefits for industry: The changes are expected to reduce regulatory burdens, costs and timelines for medical-device manufacturers and importers.

·         Faster technology access: The reforms aim to facilitate quicker availability of advanced and innovative medical devices to Indian patients.

·         Regulatory convergence: Recognition of the EU framework is expected to strengthen international regulatory convergence in the medical-device sector.

·         Overall objective: The reforms seek to balance Ease of Doing Business with quality, safety, performance and regulatory oversight, while improving the competitiveness of India's medical-device industry.

 

<G.S.R. 743(E dated 14.08.2026>

[ABS News Service/24.08.2026]

The Government has introduced key regulatory reforms in the medical device sector with a view to promoting Ease of Doing Business (EoDB), simplifying regulatory processes, enhancing transparency and facilitating timely access to advanced medical technologies in the country.

Towards this objective, the Medical Devices Rules, 2017 have recently been amended to simplify the regulatory framework governing outsourced sterilization of medical devices and to expand the list of recognized stringent regulatory jurisdictions for waiver of clinical investigation requirements.

The amendment to Rule 44 of the Medical Devices Rules, 2017 has been finalized after extensive stakeholder consultations with the objective of simplifying regulatory compliance for medical device manufacturers availing outsourced sterilization facilities.

Under the amended provisions, manufacturers outsourcing product sterilization to another facility holding a valid licence under the Medical Devices Rules, 2017 will no longer be required to obtain a separate loan licence for the outsourced sterilization activity.

The amendment eliminates the requirement for a separate loan licensing process in such cases, thereby reducing duplication, administrative burden, compliance costs and associated timelines, particularly for manufacturers that do not have in-house sterilization facilities.

The amended provision also provides a six-month transition period for implementation of the new labelling requirement. This will allow manufacturers adequate time to make necessary changes to their labelling, packaging and related processes before the provision comes into effect.

The reform seeks to strike a balance between regulatory oversight and ease of doing business by simplifying the licensing framework while retaining an essential traceability mechanism for outsourced sterilization.

The measure is expected to provide greater operational flexibility to manufacturers, facilitate faster and more efficient manufacturing processes, and support the growth and competitiveness of India’s medical device industry.

Additionally, Rule 63 of the Medical Devices Rules, 2017 has been amended to include the European Union (EU) among the recognized stringent regulatory jurisdictions for waiver of clinical investigation requirements for medical devices without predicate devices.

The provision currently recognizes the United States of America, United Kingdom, Australia, Canada and Japan. With the inclusion of the European Union, eligible medical devices that have already been approved in the EU will be able to benefit from the waiver provisions, facilitating faster patient access to advanced medical technologies in India.

The amendment is also expected to reduce the regulatory burden and associated timelines for importers and manufacturers while strengthening international regulatory convergence in the medical device sector.

These reforms are expected to simplify regulatory processes, reduce costs, enhance transparency and predictability, and facilitate the timely availability of advanced and innovative medical devices in India.

The measures represent an important step towards strengthening the medical device regulatory ecosystem and promoting greater Ease of Doing Business, while continuing to maintain robust standards of quality, safety and performance of medical devices.