India Faces Pressure to Ease Cannabis Policy Amid Global Shift

Treaty Pressure from UN Cannabis Reclassification

India's cannabis prohibition framework now conflicts with the 2020 UN Commission on Narcotic Drugs vote removing cannabis from Schedule IV of the 1961 Single Convention. That vote passed 27-25 with one abstention. It recognized cannabis's medical value and downgraded its international control classification. India voted against the change but remains a treaty signatory.

The NDPS Act of 1985 criminalizes cultivation, possession, and sale of cannabis flowers and resin while technically permitting bhang (leaf preparations). That distinction creates enforcement confusion. State governments regulate bhang shops independently, leading to wildly inconsistent policy across India's 28 states.

Domestic Hemp Industry Creates Regulatory Gaps

India's 2018 legalization of industrial hemp cultivation in Uttarakhand, Himachal Pradesh, and other northern states introduced a legal cannabis supply chain that the NDPS Act doesn't adequately address. Licensed hemp farmers grow Cannabis sativa varieties for fiber and seed oil. The 0.3% delta-9 THC threshold mirrors U.S. and European standards.

Enforcement agencies lack field-testing protocols to distinguish hemp from drug-type cultivars. Farmers report arbitrary crop seizures despite holding valid licenses. The Ministry of Home Affairs hasn't issued updated guidance since 2020, leaving state police to interpret the law independently.

The hemp sector generated an estimated ₹1,200 crore ($145 million) in 2025 revenue, according to industry group Hemp Foundation India. That figure could triple by 2028 if regulatory clarity improves.

Medical Cannabis Access Remains Theoretical

The NDPS Act permits medical and scientific use of cannabis under license, but the licensing process remains nearly impossible to complete. Only two entities hold active research permits as of June 2026: the Council of Scientific and Industrial Research and the Indian Council of Medical Research.

No pharmaceutical company has successfully brought a cannabis-derived medicine to market in India despite global precedents like Epidiolex (cannabidiol for epilepsy). The Central Drugs Standard Control Organisation hasn't published a pathway for cannabis drug approval.

Patient advocacy groups estimate 2.5 million Indians could benefit from medical cannabis access for conditions including epilepsy, chronic pain, and chemotherapy side effects—but the regulatory wall remains impenetrable.

What Enforcement Reform Could Look Like

Policy experts anticipate incremental changes rather than wholesale legalization. Likely reforms include clearer hemp-versus-marijuana definitions based on total THC content, expanded medical research licenses, and decriminalization of small-quantity personal possession.

The Ministry of Social Justice and Empowerment convened a working group in March 2026 to review the NDPS Act. Recommendations are expected by September 2026. They'll signal whether India moves toward harm reduction or maintains strict prohibition. Early signals suggest the former.

Decriminalization wouldn't legalize commercial sales but would shift low-level possession cases from criminal to civil penalties. Several states already de-prioritize cannabis enforcement. That creates a de facto decriminalization in practice if not in law.

International Trade Implications

India's cannabis policy directly affects its pharmaceutical export market and bilateral trade negotiations. The country is the world's largest generic drug manufacturer and a major supplier of active pharmaceutical ingredients. Cannabis-derived APIs represent a growing segment India can't access under current law.

Trade partners including Canada and Germany have raised the issue in bilateral forums. India's exclusion from the legal cannabis supply chain costs an estimated $400 million annually in lost export revenue, according to a 2025 Confederation of Indian Industry report.

For full background on this evolving regulatory landscape, see the CannIntel topic hub on India Cannabis Policy.

The Path Forward Remains Unsettled

Enforcement will vary widely by state even if federal policy shifts. India's federal structure gives states significant autonomy on drug policy implementation. What works in Uttarakesh won't necessarily translate to Gujarat or Tamil Nadu.

The political variable nobody can model: whether India's 2027 general elections make cannabis reform a campaign issue. Early polling suggests voters under 35 favor decriminalization 2-to-1, but the issue hasn't reached mainstream political discourse yet. We'll be watching the September working group report and any state-level pilot programs that emerge before the national vote.