Blitz Bureau
NEW DELHI:India ’s steady climb in the global Easeof-Doing Business rankings reflects a maturing ecosystem where digital approvals and streamlined processes are becoming the norm. Yet, beneath this progress lies a persistent obstacle: the culture of arbitrary No-Objection Certificates (NOCs). These requirements, often not anchored in law, stem from a bureaucratic mindset that equates control with compliance. The result is suppressed entrepreneurial energy, delayed operations, and weakened competitiveness – particularly in sunrise sectors such as medical devices.
According to the report of a parliamentary panel, faster approvals and a more innovation-friendly regulatory environment is needed to boost medical device industry in India. Redundant NOCs undermine ‘Make in India’ and Atmanirbharta visions and risk derailing the medical device sector’s global ambitions defined under the National Medical Device Policy 2023. Medical devices are poised to play a pivotal role in India’s vision of Viksit Bharat 2047. However, the ‘NOC culture’ undermines the spirit of ‘Make in India’. If the country is to emerge as a global manufacturing hub, dismantling this regulatory overreach is of imperative urgency.
Manufacturers face a maze of clearances, which vary by jurisdiction and officer, dragging them into inter-departmental tangles. Power and pollution approvals are demanded even after compliance under the Air and Water Acts. When a request is made to obtain Explosive Department permission to install a diesel tank, district collectors request NOCs from other departments within the district. Fire safety NOCs are sought despite adherence to the National Building Code and municipal approvals. Industrial estates, already notified for manufacturing, still require NOCs from Town Planning or Revenue departments.
The cascading impact of non-statutory NOCs is severe
Exporters, especially in sensitive sectors like medical devices, often see consignments stranded at ports for days due to unnecessary NOC demands from Customs authorities. This is despite the Customs Act clearly stating that no such requirement exists. The delays disrupt order deliveries, inflate inventories, and erode the country’s credibility as a reliable supplier.
Manufacturers routinely knock on the doors of Port Offices and State Drug Controllers for permissions, who in turn seek NoCs from CDSCO HQ or other departments. This overlap contradicts the very intent of creating a distinct regulatory pathway for medical devices. The cascading impact of non-statutory NOCs is severe. Manufacturers spend heavily on consultants and informal facilitation, while SMEs – the backbone of manufacturing economy – are forced to divert resources away from innovation, process quality, and exports.
India’s commitment to ‘Minimum Government, Maximum Governance’ demands that every licence, clearance, or certificate be backed by statute or rule. Arbitrary NOCs must be eliminated. A robust online approval system – with transparent checklists, defined timelines, and grievance redressal mechanisms – can ensure accountability. At the policy level, ministries must revisit NOC requirements, scrapping those that are redundant or duplicative. The medical device sector, already recognised by the Parliament’s Standing Committee as deserving a separate regulatory framework, is well-positioned to lead this change. A dedicated regulator comprising domain experts would streamline approvals and prevent arbitrary overlaps. Economic growth in the medical device sector depends on reforms in regulation, quality, environment and procurement. Doing away with arbitrary NOCs is not just an administrative reform – it is a strategic imperative. By removing these hurdles, India can unlock innovation, attract investment, and cement its position as a global leader in manufacturing medical devices and beyond.