New Delhi, Feb. 3 -- In a bid to stem the alarming opioid crisis, India's apex drug regulator plans an overhaul of the Drugs and Cosmetics Act to sharply raise punishments and fines that would deter illegal diversion of habit-forming pharmaceutical opioids, according to two government officials in the know and documents reviewed by Mint.

The move could materially tighten oversight across India's $50 billion pharmaceuticals market, even as industry stakeholders urge caution on the plan.

The proposal by the Drugs Controller General of India (DCGI) involves increasing the imprisonment duration by three-and-a-half times to seven years, and financial penalty by up to 28 times under the Drugs and Cosmetics Act to align it with the stricter Na...