Ayush Industry in India

AYUSH sector is expected to witness a CAGR of ~17% during 2024-2032 in India.

Advantage India

Unmatched
Legacy

* India is the birthplace of Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy, with a continuous practice tradition for millennia.

* A vibrant network of practitioners, educational institutions, and research centers keeps the AYUSH knowledge base alive and evolving.

Growing Demand &
Employment Opportunities

* Increasing public awareness of natural healthcare is driving demand for AYUSH products, fostering a dynamic market ripe for innovative businesses in the sector.

* Government initiatives promoting AYUSH education and training aim to foster a skilled workforce, meeting industry demands. The AYUSH sector is likely to generate nearly 3 million job opportunities in the near future.

Favorable
Regulatory Environment

* Public health surveillance in India will further strengthen the health systems.

* The Ministry of AYUSH's interim Budget allocation for 2024-25 has seen a significant increase to Rs. 3,712.49 crore (US$ 445 million), marking a 23.74% rise from the previous year's revised estimate of Rs. 3,000 crore (US$ 360 million).

* In the Union Budget 2024-25, the government allocated Rs. 89,287 crore (US$ 10.66 billion) to the Ministry of Health and Family Welfare (MoHFW).

Increasing
Interest

* The number of MSMEs (Micro, Small, and Medium Enterprises) in the AYUSH industry has seen a significant rise. From just 38,216 in August 2021, the number has grown to 53,023 by January 2023. This represents a jump of nearly 40% in just over a year, indicating the increasing interest and potential within the AYUSH sector.

Snapshot Showcase Infographics Reports

Last updated: Sep, 2024

Ayush Industry Report

Aug, 2024

Introduction

The AYUSH sector in India has witnessed significant growth in recent years, emerging as a prominent domain in terms of revenue and employment. AYUSH encompasses traditional systems of medicine such as Ayurveda, Yoga, Unani, Siddha, and Homeopathy. The sector includes clinics, wellness centers, research, herbal products, education, and holistic health practices. India's AYUSH sector is rapidly expanding, supported by increasing awareness, demand for natural therapies, and government initiatives to promote traditional medicine systems.

The AYUSH healthcare delivery system in India is bifurcated into public and private sectors. The public sector focuses on promoting and providing access to AYUSH treatments through government institutions and centers across the country. On the other hand, the private sector plays a significant role in offering a wide range of AYUSH services, including specialized treatments, wellness programs, and herbal products. India's AYUSH sector benefits from a rich heritage of ancient healing practices and a vast pool of skilled practitioners. The country's cost-effective approach to AYUSH treatments makes it a preferred destination for individuals seeking alternative and holistic healthcare solutions.

The affordability and effectiveness of AYUSH therapies have contributed to a surge in domestic and international interest, positioning India as a hub for traditional medicine research and practice.

Market Size

The AYUSH industry in India is undergoing remarkable growth, fueled by escalating consumer interest in traditional medicine, bolstered governmental support, and a burgeoning export market, heralding its significance in shaping India's healthcare and wellness domain.

The AYUSH manufacturing has experienced a remarkable surge, boasting a Compound Annual Growth Rate (CAGR) exceeding 30% between 2014-2020.

The AYUSH industry has witnessed remarkable growth, with manufacturing reaching US$ 18 billion in 2020 and reached US$ 24 billion by 2024. Combined with the AYUSH service sector's valuation of US$ 26 billion in 2024, the industry's overall worth exceeds US$ 50 billion.

Ministry of Commerce data shows overall exports of Ayush and herbal drugs reached US$ 527 million in the first ten months of FY24, up from US$ 518 million in the same period of the previous fiscal year.

According to recent data, India exported US$ 1,240.6 million of Ayush and Herbal products over the last two years (2021-2022 to 2022-2023).

India's export of Ayush and herbal products has grown by 3.6% in the fiscal year 2023-24, reaching US$ 651.17 million.

The AYUSH sector has experienced significant growth and is on track to achieve a valuation of US$ 70 billion for the AYUSH-based healthcare and wellness sector by the year 2025.

Further, estimates from imaarc group suggest that Ayush sector is expected to witness a CAGR of ~17% during 2024-2032.

Wellness tourism in India is currently experiencing remarkable growth and is poised to become a key attraction for international travelers seeking holistic rejuvenation and well-being experiences. The market potential for wellness tourism in India is substantial, with an estimated worth of US$ 19.43 billion in 2024, projected to reach US$ 26.55 billion by 2029, indicating a significant growth trajectory. India boasts a diverse array of wellness offerings, including Ayurvedic retreats focusing on harmonizing the mind, body, and spirit; Yoga and meditation centers offering immersive programs for mental and physical well-being; as well as naturopathy and holistic wellness destinations promoting natural healing methods and healthy lifestyle practices.

In July 2024, Arunachal Pradesh announced plans to introduce a Healing and Wellness Tourism Policy as part of its Rs. 993.08 crore (US$ 118.6 Million) deficit budget for 2024-25, aiming to establish the state as a premier destination for wellness tourism while prioritizing youth empowerment, infrastructure development, and niche tourism offerings.

India's competitive edge in the wellness tourism sector stems from its rich cultural heritage, deeply rooted in wellness practices like Ayurveda, which serve as a unique selling proposition. Additionally, the cost-effectiveness of wellness retreats and services in India compared to western countries makes them more accessible to a broader global audience. The country also benefits from a growing pool of skilled professionals, including qualified Yoga teachers, Ayurvedic practitioners, and wellness experts who cater to the diverse needs of international visitors.

India's appeal as a global wellness destination is further enhanced by its well-developed infrastructure, modern medical facilities, and convenient travel connections, making it an attractive choice for wellness seekers worldwide. The country's exotic locations, ranging from the tranquil beaches of Goa and Kerala to the majestic Himalayas, offer a diverse range of captivating landscapes ideal for various wellness experiences, further solidifying India's position as a premier destination for holistic well-being pursuits.

Investments/ Developments

Some of the recent developments in the Indian AYUSH industry are as follows:

In January 2024, Union Ayush Minister Mr. Sarbananda Sonowal laid the foundation stone for the ‘Ayush Diksha’ centre in Bhubaneswar, a first-of-its-kind facility aimed at developing human resources for Ayush professionals, with a budget of Rs. 30 crores (US$ 3.58 million). This state-of-the-art centre, located within the Central Ayurveda Research Institute, will provide training programs, enhance skills, and support research in Ayurveda, contributing to an integrated approach to healthcare alongside modern medicine.
On February 25, 2024, Prime Minister Mr. Narendra Modi inaugurated two significant AYUSH projects virtually, marking a milestone in India's journey towards holistic healthcare. The Central Research Institute of Yoga & Naturopathy in Jhajjar, Haryana, and the National Institute of Naturopathy titled 'NISARG GRAM' in Pune, Maharashtra were unveiled.
The interim Budget allocation for 2024-2025 designates Rs. 14.63 crore (US$ 1.76 million) to the National Medicinal Plants Board and Rs. 20.80 crore (US$ 2.50 million) to the Pharmacopoeia Commission for Indian Medicine and Homoeopathy (PCIM&H).
Chief Minister of Uttar Pradesh Mr. Yogi Adityanath highlighted the immense potential of the AYUSH medical system in transforming Uttar Pradesh into a leading health tourism destination. By efficiently implementing AYUSH practices, the state can not only offer holistic healthcare but also create substantial employment opportunities and significantly enhance farmers' incomes through AYUSH-based agriculture. The inauguration of 271 development projects, including integrated AYUSH hospitals and AYUSHman Arogya Mandirs, underscores the government's dedication to expanding and integrating traditional medical systems.
On March 03, 2024,Union Minister of AYUSH and Ports, Shipping & Waterways, Mr. Sarbananda Sonowal, alongside Union Minister of Health & Family Welfare and Chemicals & Fertilizers, Dr. Mansukh Mandaviya, announced the establishment of AYUSH-ICMR Advanced Centre for Integrative Health Research (AI-ACIHR) at select AIIMS across the nation, alongside the launch of a multicentre clinical trial on Anaemia, Indian Public Health Standards for AYUSH healthcare facilities.
On December 01, 2022, Three National Institutes of Excellence dedicated to Ayurveda, Unani, and Homoeopathy were inaugurated with the aim of providing top-notch education and research facilities in their respective disciplines.
India's total AYUSH exports amount to US$ 1.26 billion till 2021, highlighting the country's strong position in the global market for traditional medicine systems.
On November 22, 2022, the Ministry of Ayush introduced the "SPARK" fellowship program, marking the launch of the first national-level fellowship program supporting research in Ayurveda.
On October 26, 2023, a significant milestone was achieved as 26 crore Ayushman cards (health insurance cards) were issued, facilitating broader access to healthcare services for the population.
On September 15, 2023, the Ministry of Ayush granted approval for the "Ayurgyan Scheme" to foster research and development in AYUSH systems of medicine. This scheme focuses on providing grants for academic activities, training, and capacity building.
On August 08, 2023, the National Ayush Mission finalized the approval process for upgrading 12,500 health facilities into Ayush Health and Wellness Centres, expanding the reach of AYUSH services nationwide.
On July 12, 2023, the Ministry of Ayush launched the "e-Aushadhi" portal, an online platform facilitating the sale of authentic AYUSH medicines to enhance access to quality AYUSH products.
On June 20, 2023, a collaborative effort between the Ministry of Ayush and the Ministry of Commerce and Industry led to the establishment of an AYUSH Export Promotion Council aimed at boosting the global export of AYUSH products and services.
On April 12, 2023, the AYUSH mark was established by the Ministry of Ayush to ensure standardization and quality control of AYUSH products, as per the ministry's notification.
On March 28, 2023, the National Medical Commission (NMC) approved a mandatory 3-month internship in AYUSH practices for MBBS graduates, enhancing their exposure to alternative medicine systems.
On February 14, 2023, a collaboration between the Ministry of Ayush and the Ministry of Tourism was initiated to develop wellness tourism circuits, aiming to promote holistic well-being experiences for tourists.
On January 19, 2023, the National Ayush Mission launched a nationwide campaign to raise awareness about AYUSH therapies and their benefits among the general public.
On December 01, 2022, three National Institutes of Excellence dedicated to Ayurveda, Unani, and Homoeopathy were inaugurated, focusing on providing high-quality education and research facilities in their respective fields
On November 22, 2022, the Ministry of Ayush introduced the "SPARK" fellowship program to support research in Ayurveda, aiming to foster innovation and development in the field.
In July 12, 2022, a Centre of Excellence for Research in Panchakarma was established through collaboration between the Ministry of Ayush and the All India Institute of Ayurveda, emphasizing research in this traditional therapeutic practice.
In July 2022 (specific date unavailable), the National Pharmaceutical Pricing Authority (NPPA) set retail prices for 84 drug formulations to regulate pricing in the pharmaceutical sector.
In June 2022, the Ministry of Ayush and the Ministry of Commerce and Industry joined forces to establish an AYUSH Export Promotion Council to boost the global export of AYUSH products and services.
In November 2021, the National Medicinal Plants Board (NMPB) launched an online portal for seed and planting material of medicinal plants to facilitate access to resources for cultivation.
On August 09, 2021, an amendment to the Drugs and Cosmetics Act was made to include provisions for regulating ASU (Ayurveda, Siddha, and Unani) drugs, ensuring quality and safety standards.
In May 2021, a new scheme was introduced by the Ministry of Ayush to promote the cultivation of medicinal plants, emphasizing sustainable sourcing for traditional medicine production.

Government Initiatives

Some of the major initiatives taken by the Government of India to promote the Indian healthcare industry are as follows:

In July 2024, the Ministry of Ayush and the Department of Science and Technology signed a Memorandum of Understanding (MoU) to collaborate on research and development for evidence-based scientific interventions in the Ayush sector, aiming to integrate traditional practices into the public healthcare system.
The National AYUSH Mission (NAM), launched in 2014, is a centrally funded program aimed at enhancing AYUSH services nationwide. It focuses on increasing accessibility by establishing new dispensaries, upgrading existing facilities, and expanding the AYUSH workforce. Additionally, NAM prioritizes preventive healthcare through AYUSH practices, community outreach programs, and integration with existing public health initiatives to promote holistic well-being and preventive care for the population.
In the Union Budget 2024-25:
- Under the Union Budget 2024-25, the Ministry of Health and Family Welfare has been allocated Rs. 90,659 crore (US$ 10.93 billion), an increase of 12.59% compared to Rs. 80,518 crore (US$ 9.71 billion) in 2023-24.
- Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was allocated Rs. 3,365 crore (US$ 405 million)
- Human Resources for Health and Medical Education was allotted Rs. 6,500 crore (US$ 780 million).
- National Health Mission was allotted Rs. 29,085 crore (US$ 3.51 billion).
- Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) was allotted Rs. 7,200 crore (US$ 870 million).
CSIR-Institute of Genomics & Integrative Biology (IGIB) Ayurgenomics: Pioneering a study linking Ayurvedic Prakriti (body constitution) with genetic data, offering personalized preventive and predictive medicine approaches within Ayurveda.
Centre for Integrative Medicine and Research (CIMR) - AIIMS: Focused on cutting-edge research integrating Ayurveda and Yoga with modern medicine, showcasing effectiveness in treating conditions like migraines and vasovagal syncope.
Ayurgyan Scheme: Ayurveda Biology Integrated Health Research: Bridging Ayurvedic knowledge with modern biological sciences, exploring molecular mechanisms, herb interactions, and evidence-based integration into healthcare.
Ayurswasthya Scheme (Public Health - PHI Component): Integration of AYUSH services into primary healthcare, community-based interventions, and cost-effectiveness analysis to enhance public health applications.
Tribal Healthcare Research Programs (TSP): Executed through CCRAS and CCRUM institutes, providing medical aid, documenting local health traditions, and benefiting tribal populations.
Mobile Healthcare Research Programs: Focused on Scheduled Castes Sub Plan (SCSP) and Women and Child Healthcare Program (WCH), surveying populations, providing medical aid, and benefiting a significant number of individuals.
Other Public Health Initiatives: Swasthya Rakshan Programme, integration of AYUSH with NCDCs, establishment of Ayurvedic Health Centres under North East Plan, benefiting over five years a total of 514,395 individuals.
The NCISM & NCH Acts (2020): Modernized framework for AYUSH education under contemporary regulatory standards, aiming to enhance transparency, efficiency, standardization, and quality.
AYUSH Skill Development Program under HSSC: Healthcare Sector Skill Council offering skill development qualifications for AYUSH professions under the directives of MoAYUSH and MSDE, focusing on developing and implementing skill development initiatives for the AYUSH sector.
AYUSHman Arogya Mandir: Initiative aiming to establish 12,500 holistic wellness centers under AYUSHman Bharat, witnessing significant growth in beneficiaries over the years, indicating increasing reach and impact.

Road Ahead

The AYUSH market in India has witnessed an exponential rise, ballooning from a mere US$ 2.85 billion in 2014 to a staggering US$ 24 billion in 2024. This translates to a near ten-fold increase in just eleven years, signifying an exceptional growth trajectory. This remarkable trajectory is underpinned by a burgeoning demand fueled by increasing health consciousness and a growing inclination towards holistic remedies.

Bolstering this growth are governmental initiatives like the establishment of the Ministry of Ayush and concerted efforts to integrate AYUSH with mainstream healthcare, alongside stringent measures to ensure the quality and safety of AYUSH products. The sector presents a plethora of investment opportunities across wellness centers, herbal product development, and AYUSH education, while also garnering significant international recognition, opening avenues for expanded exports and strategic collaborations. However, sustaining this momentum necessitates continued emphasis on research, standardization, quality control, and the development of a skilled workforce. By addressing these imperatives, India is poised to emerge as a global leader in traditional and holistic wellness, contributing significantly to both national healthcare advancement and global healthcare discourse.

References: Department for Promotion of Industry and Internal Trade (DPIIT), RNCOS Reports, Media Reports, Press Information Bureau (PIB), Union Budget 2024-25