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India's CDSCO Standardizes Licensing Paths for AI and Digital Health Software

New guidance from the Central Drugs Standard Control Organisation outlines how software and AI tools must meet existing safety standards. The document distinguishes between standalone diagnostic code and embedded hardware systems.

By Project Chintan Newsroom
29 July 2026 · 1 min read
India's CDSCO Standardizes Licensing Paths for AI and Digital Health Software

Clarifying the Medical Device Rules for Digital Tools

India's Central Drugs Standard Control Organisation (CDSCO) has released a comprehensive manual to navigate the oversight of Medical Device Software (MDSW). Rather than introducing new legislation, this document explains how the Medical Devices Rules (MDR) of 2017 and the Drugs and Cosmetics Act of 1940 apply to modern digital health solutions. The guidance targets a broad spectrum of stakeholders, including researchers, importers, and developers, ensuring they understand the legal prerequisites for market entry.

Defining Scopes and Risk Categories

The regulatory body distinguishes between Software as a Medical Device (SaMD) and Software in a Medical Device (SiMD). While the former acts as an independent diagnostic or clinical support tool, the latter is integrated into physical hardware. Regulatory scrutiny scales according to patient risk, utilizing a four-tier classification system:

  • Class A: Low-risk applications.
  • Class B: Low to moderate risk.
  • Class C: Moderate to high risk.
  • Class D: High-risk applications requiring the most intensive oversight.

Health Ministry officials noted that this framework aligns with the International Medical Device Regulators Forum (IMDRF) standards. However, software used exclusively for general wellness, fitness tracking, or lifestyle management remains outside these specific medical regulations.

Lifecycle Requirements and AI Accountability

AI and machine learning tools intended for disease prediction, monitoring, or treatment are now firmly within the regulatory fold. Developers must adhere to a full-lifecycle management approach. This includes meticulous software design, validation, cybersecurity protocols, and ongoing maintenance. Furthermore, the CDSCO emphasizes the necessity of clinical evidence to verify that these algorithms perform safely in real-world medical scenarios. By removing ambiguity in the compliance process, officials expect to bolster investor confidence and accelerate the integration of AI within the national healthcare system.

Source: The Hindu — News

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