The Central Bureau of Narcotics (CBN) under the Department of Revenue, Ministry of Finance, and the Pharmaceuticals Export Promotion Council of India (PHARMEXCIL) have signed a Memorandum of Understanding to support India’s pharmaceutical exports while maintaining strict regulatory controls. The agreement, signed on 24 August 2026 at CBN headquarters in Gwalior, seeks to balance trade growth with oversight of substances that could be diverted to illegal use.
What the agreement covers
The MoU establishes a cooperative framework between the two bodies on several fronts:
- Voluntary Code of Conduct: The government and PHARMEXCIL will jointly develop a Voluntary Code of Conduct that sets out recommended practices for pharmaceutical exporters. This code will remain optional and will not impose additional legal or financial obligations beyond existing laws.
- Streamlining exports: The partnership will identify and remove operational hurdles in the export process for pharmaceutical companies that comply with regulations, with the goal of reducing processing delays.
- Training and awareness: Joint workshops, seminars and information campaigns will be held for exporters, coordinated with agencies such as the Central Drugs Standard Control Organisation (CDSCO) and Customs authorities.
- Data exchange: Both organisations will share information needed to meet regulatory goals, subject to confidentiality rules and applicable laws.
- Industry contact points: Pharmaceutical companies will nominate designated contact persons to handle matters related to the Voluntary Code of Conduct.
CBN, which operates under the Narcotic Drugs and Psychotropic Substances Act, 1985, regulates the cultivation of opium poppy and approves the import and export of narcotic and psychotropic substances to prevent their illegal diversion.
A six-month action plan has been drawn up to focus on outreach across India, stakeholder engagement and defining areas for institutional cooperation between the two agencies.
What this means for you
If you work in or supply to the pharmaceutical export sector, this agreement may eventually make the export approval process faster and clearer, though the code of conduct remains voluntary. Exporters who comply with regulations should see reduced waiting times for authorisations. The framework also signals that India intends to protect its reputation as a reliable pharmaceutical supplier by preventing the misuse of narcotic precursors in international trade.