Snapshot

One of the fastest growing sectors in India

The Ayush sector has grown 17% year on year between 2014 and 2020. The market size of the industry stands at $ 18.1 Bn from $ 2.85 Bn in 2014, clocking a phenomenal growth of almost 6 times. The sector likely to generate nearly 3 Mn job opportunities.

Share of sub-sectors in Ayush market size are Herbal Plants (43.35%), Nutraceuticals (24.65%), Pharmaceuticals (14.11%), Cosmeceuticals (8.37%), Plant Derivatives (5.14%) and Plant Extracts (4.39%). 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 the market share of 14.1 % in 2020. 

Country’s exports in the sector expanded rapidly from $1.09 Bn in 2014 to $1.54 Bn in 2020, registering a robust growth rate of 5.9 % annually. 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. 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.

India has exported Ayush and Herbal products worth $1,240.6 Mn in last two years (2021-2022 to 2022-23). A total of $612.1 Mn Ayush and Herbal products were exported in 2021-2022 while $628.25 Mn  Ayush and Herbal products were exported in 2022-2023. 

 

  • $ Bn

    Service Sector Size

  • $ Tn

    Ayush based Healthcare & Wellness economy by 2025

  • Ayush Dispensaries in India as of 2023

Ayurveda market predicted to grow at 15% CAGR from 2021-2026 

Ayush ranks among the top five health services’ export earnings with MVT in India

More than 8,000 species of medicinal plants found in India

Industry Scenario

Position India as #1 Hub for Medical & Wellness Tourism globally with a market size of $13 Bn (INR 1L Cr) by 2026

  • Various sub-sectors, particularly, herbal pharmaceutical sector expanded at the rate of 18.5 % during the same period with the market share of 14.1 % in 2020. 
  • Nutraceuticals is the dominant sector in the industry exports, accounting for 42.3% of the domestic market. Pharmaceuticals are also coming up with a share of 30% follow by herbal plants of 13.8%
  • The Government of India has already set a target of increasing spending on healthcare from the current 1.3% to 3% of GDP, which will positively impact Ayush.
  • The market size for telemedicine in India was around $830 Mn in 2019. It is projected to increase to $5.5 Bn by 2025 growing at a CAGR of 31% during 2020-25.
  • The number of patients treated with Ayush system of medicine through government hospitals and dispensaries has risen from 2.5 Crores (FY 2017-18) to 4.3 crore (FY 2020-21).
  • Under Ayushman Bharat scheme, Ayush would manage 12,500 HWCs to offer Ayush health services and wellness interventions as part of Comprehensive Primary Healthcare. 
  • Drug Manufacturing Units under Ayush Systems: There are more than 8100 manufacturing units existing in the country (as of 2022)
  • 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.
  • Under Ayush Health Infrastructure, there are 12,000 Ayush Hospitals and 37,000 Ayush Dispensaries. 
  • Ayush Educational Institutes, UG & PG (during the Academic year 2022-23)
    • Permitted Colleges: 697
    • Admitted Students: 4,593
  • Infrastructural Projects
    • No. of Projects in Progress: 21
    • Budget: 1864.29 Cr
  • Practitioners: There are 7,12,132 Ayush practitioners in the country (as of 2022).  
  • GCTM: The Ministry of Ayush and the World Health Organization (WHO) is establishing the world’s first and only global outposted centre (office) for traditional medicine (WHO- Global Centre for Traditional Medicine). The World Health Organization and the Government of India had signed the Host Country agreement on the 25th March, 2022 to establish the W.H.O- Global Centre for Traditional Medicine in Jamnagar, Gujarat.  As lead investor in the WHO Global Centre for Traditional Medicine, Government of India has committed an estimated $250 Mn to support the Centre’s establishment, infrastructure, and operations with a 10- year commitment.
  • Constant attempts at building an investment friendly industry, strong academia partnerships for Transfer of Technology (ToT) through major research institutions like CCRAS (Central Council for Research in Ayurvedic Sciences) and CSIR (Council of Scientific & Industrial Research), digitization through e-Charak, e-Aushadi etc., are some of the initiatives of the Ministry of Ayush.

GROWTH DRIVERS

  • Increased Government Spending

    The total allocation of budget to Ayush Ministry has increased by 20% to INR 3647 Cr. Budget allocation to centrally sponsored National Ayush Mission (NAM) has got 50% increase in allocation from INR 800 Cr to INR 1200 Cr.

  • Developing Standards on Ayush Systems

    Promotion of Ayush products in over 165 countries through ISO standards route.

  • WHO Global Centre for Traditional Medicine

    This would 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 is 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, Indian Medical Value Travel market size is expected to grow to $13 Bn by 2026 from present value of $5-6 Bn.

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FAQs

Frequently
Asked Questions

What is the size of the Ayush manufacturing industry and how has the industry been shaping up domestically and globally?

The manufacturing industry in Ayush has been growing at a CAGR of 17% every year since 2014, with a market size of over INR 1,50,000 Cr in 2020 and projected at around INR 1,90,000 Cr in 2022 (in rupee-equivalent terms). Total Ayush export in India was also a healthy INR 13,000 Cr in 2020. In the period from 2014, some product segments have grown at much higher rate than the overall industry. Specifically, plant derivatives experienced 21 per cent growth in the period 2014-2020 followed by nutraceuticals (20.5%). 

This industry has seen a recent surge owing to rising consumer awareness of the long and short-term harmful effects of chemical treatments and products, and due to the shift towards holistic wellness and traditional medicine, post-pandemic. India is one of the top exporters of alternative medicines in the world. Major export destinations include US and European countries like Germany and France. The Government is also supporting the industry with investment in scientific research in Ayush, building the necessary infrastructure and regulatory framework. It has also allowed 100 percent foreign direct investment in the Ayush sector. 

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What is the size & scope of the Ayush services industry?

The size of the Ayush service sector in India has increased manifold & was projected at over ₹ 1,85,000 Cr  in 2022, making it almost equivalent in size, to the Ayush manufacturing sector. Wellness Travel & Medical Value Travel in Ayush are the fastest growing sub-segments within Ayush services.  Within health services’ export earnings too, Ayush ranks among the top five health services with total Medical Value Travel (MVT) in India projected at $13 Bn in 2022. More information about the same can be accessed here.

 

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Has Ministry of Ayush/Ayush sector conducted some marquee events that industry can participate in, if & when conducted in the future?

1. GAIIS- The first ever mega event of this scale in Ayush sector facilitated agreements with international and national institutions and various other sectors, fueling financial considerations, mutual research and increasing Ayush reach globally. The event, inaugurated by the Hon’ble PM, saw the participation of total audience/visitors: 25000+, foreign delegates: 70+, total MoUs signed (global & domestic)- 70+, and Letter of intents (LoIs) worth more than Rs.9000 crore  in major categories like FMCG, Medical Value Travel (Heal in India), Pharma, Technology & Diagnostic and Farmers & Agriculture.

2. World Ayurveda Congress- The event is held with an objective of providing a global platform for all the stakeholders, including industry leaders, practitioners, traditional healers, educationists, students, medicine manufacturers, growers of medicinal plants and marketing strategists, for networking and engaging in intellectual exchange to strengthen the Ayurveda sector, envision its future, and facilitate interaction between professionals and consumers to boost Ayurveda commerce. In its last edition, over 4500 participants from all over the world including 400 foreign delegates from 53 countries were participating in the 9th World Ayurveda Congress & Arogya Expo. The Arogya Expo is set to witness participation of more than 215 companies, leading Ayurveda brands, medicine manufacturers and Ayurveda related educational and Research & Development institutions.

3. Global Platforms-

  • SCO (Shanghai Co-operative Organization): The Conference and Expo on Traditional Medicine is held to provide an opportunity for regulators, industries and business leaders in all the SCO and partner countries to deliberate on various aspects of Traditional Medicine, such as products, services, education, skill development, cosmetics and Policies. It further deepens the trade and friendship among each other in traditional medicine and allied field. More than 150 delegates from 17 countries, including India, participated in this event, including high-level delegates such as Health Ministers, official delegates, and foreign buyers from SCO & partner countries. In its first and latest edition held in 2023- an incremental trade interest of over ₹590 crores was generated during the two days of intense meetings among the buyers and sellers at the conference.
  • G20: As part of Health Working Group, Ministry of Ayush has participated in various G20 events, including 4 main Health Working Group Events, and also across Startup 20, Civil 20, Science 20, Women 20 and Think 20 Engagement Groups, where Ayush industry was suitably provided a global platform for showcase and awareness generation. 

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What is the lifecycle stage of the Ayush industry in terms of maturity and what is being done to promote the sector?

Ayush is a nascent sector and is a sunrise sector for India, with tremendous promise for the world. There are over 900 DPIIT-registered startups in the Ayush sector and over 53,000 MSMEs, comprising over 80% of the sector, indicating the vibrancy and extent of opportunity in the sector.

As India moves up in the global ease of business rankings ably supported by schemes such as ‘Make in India’ and ‘Startup India’, regulatory reforms such as 100% FDI and perpetual licensing, are expected to give further impetus to investor confidence in the sector. Tapping on this potential, State Industrial Policies have also included special incentives for promoting Ayush manufacturing.  The Ministry of Ayush experts are developing ISO standards in collaboration with the Bureau of Indian Standards. This will open a huge export market for Ayush in more than 150 countries. Further, initiatives such as the establishment of i-CAINE incubator under the All India Institute of Ayurveda, a push for standardization of products & services with a proposed Ayush Mark, Ayush Visa etc., will ably support the sector in times to come. 

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Highlight some key ecosystem facts & enablers for Ayush in India.
  • Cultivation: At the central level, programs for sustained supply of medicinal plants through cultivation/collection and market linkage in contract farming are being undertaken by NMPB, with the help and convergence with Ministry of Agriculture, and other GoI departments.  

  • Focused Research & Development in Technology: R&D by research councils under the ministry, CSIR, ICAR and 14 forest research institutes are enabling agro technology on the medicinal plant sector. 

  • Industry-Academia Partnerships: An investment friendly industry-academia partnership for transfer of technology (ToT) through research councils under the ministry is provided by the Ministry of Ayush to develop high value production along with world class R&D. 

  • Research Ecosystem: Government research institutes like the Central Council of Research in Ayurvedic Sciences (CCRAS), Central Council for Research in Yoga and Naturopathy (CCRYN), Central Council for Research in Unani Medicine (CCRUM), Central Council for Research in Siddha (CCRS) and Central Council for Research in Homoeopathy (CCRH) have been developing and validating drugs and technologies in collaboration with reputed organizations like the Council of Scientific & Industrial Research (CSIR).  

  • IT Infrastructure: 

  1. E-Aushadhi - a web-based application which has allowed digitization of the licensing process, as well as the Ayush Grid, a one-stop umbrella platform for all IT initiatives of Ayush.  
  2. Ayush Grid - This nationwide umbrella digital platform for Ayush aims to bring all Ayush hospitals, research & academic institutions, and laboratories on board in digital healthcare 
  3. Ayush HMIS (Hospital Management Information System) - The Ayush HMIS is a dedicated portal for Ayush Electronic Health Records (EHR), with the purpose of improving patient care, work efficiency, research, efficient management of hospital, documentation, and to collect the morbidities codes. 
  4. NAMASTE (National Ayush Morbidity and Standardized Terminologies Electronic) Portal - NAMASTE has a provision to quote ICD-10 and ICD-11 along with Ayush morbidity code for reference, thereby employing a dual-code system. This dual code (ICD-10/11) system enhances the reporting of morbidity, helps with the easy integration of Ayush into insurance coverage and reimbursement systems - key steps in achieving universal health coverage. 
  • Inter-Ministerial Initiatives: Ayush focused initiatives in the MSME space would include CART (Centre for Agro Rural Technology) Division for medicinal plant sector in rural areas and Ayush focused Technology centers. There are many other collaboration initiatives ranging from development of Ayush MSMEs (under an MoU with the Ministry of MSME), promotion of Ayush in public health initiatives, promotion of information, education, and communication in Ayush etc. 

  • Regulatory Ease & Applicability: The country in collaboration with WHO, is developing standard terminology for ASU systems in line with the International Classification of Diseases (ICD) 11 - Traditional Medicine Chapter 2, for its uniform applicability which will further enhance the usage & adaptation of Ayush at the domestic & international level. 

  • Capacity building: This has been one of the key focus areas of the Ministry of Ayush, especially for MSMEs, and has been the key motive of the recent MoU between Ministry of Ayush & Ministry of MSME, which includes the need assessment and identification of Ayush Clusters, Procurement & Marketing Support Scheme for National/International trade fairs, exhibitions, packaging, E-Marketing and export and Incubation – Start-Up / Enterprise Development. 

 

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