Regulations Current Affairs - 2020

Medical Devices now to be regulated under Drugs and Cosmetics Act

On February 11, 2020, Ministry of Health and Family Welfare announced that medical devices are to be brought under Drugs and Cosmetics act (DCA). This is to come into effect from April 1, 2020

Highlights

According to the regulation, every product that is used to treat a patient will now be under the ambit of DCA. It includes MRI, CT scan, thermometer, dialysis machines, etc. A list of 37 devices has been included. This includes medical devices used on animals as well.

Drugs and Cosmetics Act

The DCA regulates manufacture, distribution and import of drugs in India. It was passed in 1940. The act was prepared based on the recommendations of Chopra Committee that was constituted in 1930.

The term Drug in the act includes substances and diagnostic devices as well. The act provides guidelines for sale, display, prescription and storage of drugs. The act has so far been amended in 7 times.

Amazon to invest 1 billion USD in India; Create 1 million jobs

On January 17, 2020, one of the world’s largest retailer Amazon announced that it has planned to invest 1 billion USD in India and generate 1 million jobs. Globally Amazon has increased its employee base four times.

Highlights

The retailer has been constantly facing rage of the small and medium enterprises in India for its discounts. In order to involve small and medium businesses, a mega summit called the smBhav was organized by Amazon in the capital on January 14, 2020. Around 3000 small and medium entrepreneurs attended the summit.

Analysis

According to the National E-Commerce Policy, 2019, the Indian E-Commerce market is estimated to reach 200 billion USD by 2026. As India is one of the largest markets in the world, the foreign E-Commerce giants are competing with each other to capture Indian market. This 1 trillion USD and smBhav moves of Amazon are best examples.

While it is important to allow the growth of the market, it is also equally important keep the factors influencing the growth at check. It includes

  • Regulation of customer data
  • Stimulating domestic digital economy
  • Regulatory issues
  • Export Promotion through E-Commerce. This is the most important factor as India should neither be used as dumping yard for foreign products nor be used as a service provider for foreign E-Commerce giants. Rather, local Indian goods and products should grow in terms of production making India a net exporter.

Legislation

The principal legislation that is governing e-commerce in India is the IT act.