India is the 2nd largest exporter of Ayurveda and traditional medicine globally
As per most recent figures, India’s Ayush industry revenue stands at $ 18.1 bn from overnbsp;3 bn in 2014, clocking a phenomenal growth of almost 6 times. Between 2014-2020, the Indian Ayush industry grew 17% year-on-year. Rejuvenation is the fastest growing segment with a growth rate of about 25% within the Wellness market as of FY 2017 and the sector is likely to generate nearly 3 mn job opportunities.
Ayurveda market predicted to grow at 15% CAGR from 2021-2026. India exports Ayush products to markets such as the USA, Nepal, Russia, Philippines, UAE, Kenya, Germany, Vietnam, China, Italy, The UK, Western Europe, Japan, Hong Kong etc. The herbal pharmaceutical or medicament sector constituted 35.2% of Ayush exports in 2020, while the extracts and nutraceuticals sector shared around 22% export share each in the total, whereas medicinal and aromatic plant recorded 19.9% export share in 2020.
According to the data available on the Udyam portal, there are about 53000 MSMEs (Micro – 47,892; Small – 4,412; Medium – 719) of Ayush sector. The size of the Ayush service sector in India (consisting of hospitals, day-care, clinics, and dispensaries) is projected to be $6 Bn in 2022. Within health services’ export earnings, Ayush ranks among the top five health services with Medical Value Travel (MVT) in India & is expected to grow to $13 Bn in 2022.
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Global Ayush market
- $ bn
Service Sector Size in 2022
- $ tn
Ayush based Healthcare & Wellness economy by 2025
- $ Bn
MVT in India is expected to grow in 2022
One of the fastest growing sectors in India.
More than 8,000 species of medicinal plants are found in India
Country’s exports expanded from $1.09 bn in 2014 to $1.54 bn in 2020 with 5.9 % annually.
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
The global market size of the herbal sector which was estimated at $ 657.5 bn in 2020 and is likely to touch $ 746.9 bn by 2022.
As estimated by IMARC (2021), the Ayurveda market is expected to grow by round 15 % during 2020-2025. Statistics from NMPB indicates two to three-fold increase in value of herbal raw materials (as per Née much Mandi rates) between January and September 2020.
The sector of herbal medicine grew at the rate of 7.4 % per annum during 2014-20. Various sub-sectors, particularly, herbal pharmaceutical sector expanded at the rate of 18.5 % during the same period with a market share of 14.1 % in 2020. Nutraceuticals is the dominant sector in the industry accounting for 42.3% of the domestic market. Pharmaceuticals are also coming up with a share of 30% followed by herbal plants at 13.8%. Share of sub-sectors in Ayush market size – Herbal Plants (43.35%), Nutraceuticals (24.65%), Pharmaceuticals (14.11%), Cosmeceuticals (8.37%), Plant Derivatives (5.14%) and Plant Extracts (4.39%). The Government of India has already set a target of increasing spending on the healthcare from the current 1.3% to 3% of GDP, which will positively impact Ayush.
The number of patients treated with Ayush medicine through government hospitals and dispensaries has risen from 2.5 Crores (FY 2017-18) to 4.3 cr (FY 2020-21). Under the Ayushman Bharat scheme, Ayush would manage 12,500 HWCs to offer Ayush health services and wellness interventions as part of Comprehensive Primary Healthcare.
Increased government spending
Ayush Ministry’s budget allocation stands up at INR 3,050 Cr, 4-fold increase over 7 years.
Developing standards on Ayush Systems
Promotion of Ayush products over 165 countries through ISO standards route
WHO Global Centre for Traditional Medicine
Will promote collaborative efforts in research, regulation, & trade and connect the global value chain leading to improved ease of business & governance
Policy support & Incentives
100% FDI allowed in Greenfield & Brownfield projects, Ayush Visa, Ayush Parks & Ayush Mark to improve EoDB are being undertaken
Rise in Medical Value Travel
Due to the relatively low cost of medical care in India, is expected to grow at a CAGR of 21.1% from 2020 to 2027, reaching a valuation of $6 bn