Government Bets Big On AYUSH, Targets US$200 Billion Market By 2029

“We want to create a brand value for AYUSH products. This involves more respect and demand for the products, in addition to the commercialisation,” Vaidya Rajesh Kotecha, Secretary, AYUSH Department, told The Secretariat. He revealed that the AYUSH market stands at close to US$45 billion, of which the domestic market is about US$41 billion; the rest is exports.

“India’s AYUSH market (domestic) is marginally less than the pharma market, indicating a strong demand within the country. Our NSS survey revealed that roughly 96% of the urban population and 95% of the rural population are aware about AYUSH, and that 50% of them have spent at least ₹100 per year for these products,” said Kotecha. 

One of the key measures includes raising the seats for colleges imparting AYUSH medical education across the country. The process of certifying short-term AYUSH courses is also in the process. 

Addressing a gathering at Ahmedabad Management Association (AMA) recently, Kotecha said that the department has created ISO standards for over 100 AYUSH products and services. “Often, for exports, we need certifications. The initiative will go a long way in building trust about AYUSH products in the global market. We have also started documenting on a large scale to create evidence-based research and study papers,” he said.

A National Watchdog

Another major step is the national watchdog for the food sector. The Food Safety and Standards Authority of India (FSSAI) formulated Food Safety and Standards (Ayurveda Aahar Regulations, 2022, and notified the regulations. This means that packaged food can be labelled as ayurvedic, enhancing its credibility, and potentially fetching a better market price. “As of now, many food items can be classified as ‘ayurvedic aahar’. We want to create awareness on a massive scale and get items classified accordingly,” he said. The department has also taken steps to improve the reach of AYUSH products using e-commerce portals. The government is giving various incentives to small businesses and startups in the sector. 

On the export front, it has created the Export Promotion Council for AYUSH products and services. The global market size of Ayurveda was estimated at US$17.15 billion in 2024 and is projected to reach US$85.83 billion by 2033, a CAGR of 19.66%. In order to tap this market, steps are taken to improve packaging and the method of medication (tablets and syrups instead of powders). 

Collaboration Efforts

The AYUSH Department undertook a major outreach for collaboration to promote traditional Indian medicines: 

• WHO-Global Traditional Medicine Centre at Jamnagar. The centre is a part of the WHO, and promotes traditional medicines.
• Global repository on traditional medicine with the use of AI and a training module on AI for traditional medicine experts.
• 25 Country-to-Country MoU.
• 52 MoUs for Inter-institutional collaborative research.
• 43 AYUSH Information Cells in 39 countries.

Major Bottlenecks

Experts see a major potential for Indian traditional medicines globally. However, they have flagged major interventions to establish India as a source of traditional medicines. Bhavin Pandya, Dean, Faculty of Management Studies (FMS) at Gandhinagar-based Kadi Sarva Vishwavidyalaya, highlighted four key interventions:

• Authentication of Raw Materials: It is necessary that the raw material is pure and adheres to the standards. The use of chemical pesticides and pollution can reduce the effectiveness. 
• Drug Delivery System: Medicines need to be in a form that can be easily consumed by the patient. The use of medicine in powdered form is not user-friendly.
• Packaging: The packaging, with credible information on the raw materials and sourcing, increases the acceptance and brand value.
• Clinical Trials and Evidence-Based Medicines: This is the weakest link in the ecosystem. Lots of documentation is required to authenticate medicines and their therapeutic benefits.

S. Dangayach, Founder-Trustee of Innovative Thought Forum, which aims to bring about policy-driven reforms, told The Secretariat, “AYUSH is the next generation business. Its products do not use synthetic raw materials and, so, these are net-zero products. By nature, AYUSH is our own swadeshi system for healthcare and can play a major role in creating atmanirbharta in healthcare delivery."