The food and beverage industry of India has seen an escalating growth in the last few years. Nutraceuticals and functional food sector are evolving as a popular segment owing to the increasing awareness of the people towards good health. Another driver for its growth is the factors like unhealthy lifestyle, less exercise, and workouts, which make the dependence on nutraceuticals and functional foods inevitable. It is claimed by many that the Indian nutraceuticals and functional food market are yet to experience the exponential growth. This exaggerates the need and importance of the regulations specific to the nutraceuticals and functional foods. Historically, in India, the food laws were highly ambiguous and the regulations related to this segment were at the back seat, but with the introduction of Food Safety Standards (FSS) Act, 2006, a special emphasis is being given to the regulations of nutraceuticals and functional foods. The nutraceuticals and functional foods that are imported into India also need compliance with the Food Safety Standards (FSS) Act and its rules and regulations. Although the FSS Act 2006 is reforming in terms of compliance and ease to the operators, there still is the need of significant expansion of this act, in order to increase the impact of this law in the whole functional food and nutraceutical industry of India.