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.
The AYUSH industry in India is experiencing notable growth, driven by increasing consumer interest in traditional medicine, supported by governmental backing, and propelled by a burgeoning export market, thus affirming its pivotal role in shaping India's healthcare and wellness landscape. Between 2014 and 2020, the AYUSH sector boasted a remarkable Compound Annual Growth Rate (CAGR) exceeding 30%. Manufacturing within the AYUSH industry reached US$ 18 billion in 2020 and is forecasted to reach US$ 24 billion by 2024. Additionally, the AYUSH service sector is valued at US$ 26 billion in 2024, culminating in an industry worth surpassing US$ 50 billion.
The 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.
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).
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).
Projections indicate that the AYUSH-based healthcare and wellness sector is on course to achieve a valuation of US$ 70 billion by 2025. Concurrently, wellness tourism in India is experiencing significant growth and is poised to emerge as a primary attraction for international travelers seeking holistic rejuvenation and well-being experiences. The market potential for wellness tourism in India is substantial, estimated at US$ 19.43 billion in 2024, with forecasts indicating growth to US$ 26.55 billion by 2029. India boasts a diverse range of wellness offerings, encompassing Ayurvedic retreats aimed at aligning the mind, body, and spirit; Yoga and meditation centers providing immersive programs for mental and physical well-being; and naturopathy and holistic wellness destinations promoting natural healing techniques and healthy lifestyle practices.
The Ministry has strategically established a comprehensive nationwide network with strong global connections, showcasing its unwavering commitment to fostering global well-being. Over 150 research studies have been meticulously conducted to explore the effectiveness and potential of AYUSH interventions, demonstrating a concerted effort to advance knowledge in this field. Innovative formulations like AYUSH-64 have shown promising prospects in managing various health conditions, marking the dawn of a potential era of breakthroughs in healthcare. Pioneering institutions such as the All India Institute of Ayurveda (AIIA) and National Institutes of Ayurveda (NIA) have emerged as leaders in AYUSH education and research, significantly contributing to the enhancement of academic standards in this sector. The number of colleges has substantially increased from a modest count of 334 in 2014 to an impressive total of 1,137 colleges as of the current year, reflecting burgeoning interest and recognition for AYUSH disciplines and indicating robust growth and diversification within the educational infrastructure supporting AYUSH studies. Additionally, there are 7,55,780 registered practitioners and a total of 36,848 AYUSH dispensaries.
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.
As of August 2, 2024, the Ministry of AYUSH has certified 750 out of 1,000 Ayushman Arogya Mandir facilities for NABH Entry Level Certification. Additionally, 10,000 Geriatric camps are being organized across India from June to September 2024, focusing on health assessments for the elderly.
India's export of AYUSH and herbal products has demonstrated a steady yet moderate growth rate of 3.6% during the fiscal year 2023-24, reaching US$ 651.17 million.
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.
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.
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).
With 24 country-to-country MoUs and 46 institute-level partnerships, AYUSH is fostering global collaboration, enhancing knowledge exchange, and promoting cultural recognition of alternative medicine practices.
In February 2024, the Ministry of AYUSH and the Research and Information System for Developing Countries (RIS) signed a Memorandum of Understanding (MoU) in New Delhi. This collaboration aims to outline the AYUSH Service sector's overview and bolster academic cooperation, emphasizing its potential for Medical Tourism.
The Global AYUSH Investment and Innovation Summit (GAIIS), held from April 20-22, 2022, concluded with remarkable achievements. The AYUSH sector secured Letter of Intents exceeding US$ 1.09 billion (Rs. 9,000 crore) in three days, spanning FMCG, Medical Value Travel, pharmaceuticals, technology, diagnostics, and agriculture.
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 27,2024, the Ministry of Ayush and the Research and Information System for Developing Countries (RIS) in New Delhi have signed a Memorandum of Understanding (MoU) aimed at enhancing academic cooperation, research, policy dialogue, and publications in the field of Indian Traditional Medicine.
No. of AYUSH beneficiaries in government hospitals and dispensaries have risen from 2.5 Crores (FY2017-18) to 8.42 Crores (FY2022-23).
On August 12, 2022, the Ministry of Ayush and the Ministry of Electronics and Information Technology (MeitY) signed a three-year Memorandum of Understanding (MoU) to support the digitalization of the Ayush Sector under the Ayush Grid project. This agreement expands upon their 2019 collaboration. The Ayush Grid project, part of the Digital India Program, aims to enhance operational efficiency and service delivery in Ayush healthcare. MeitY will provide technical assistance, including the adoption of emerging technologies. Previous collaboration resulted in tools like the AyushSanjivani mobile app and monitoring dashboard. This partnership will further strengthen support for the Ayush Grid project's successful execution.
On November 22, 2022, AYUSH Spark: A fellowship program launched by the Ministry of Ayush to support research and development in the field of Ayurveda. This initiative aims to provide financial assistance and mentorship to bright young minds pursuing research in Ayurveda (BAMS students).
On May 1, 2023, Patanjali Foods Limited signed a Memorandum of Understanding with the state of Telangana to establish a food processing unit in Nalgonda district. This initiative aims to bolster food processing capabilities in the region. The collaboration signifies Patanjali's expansion efforts and its commitment to enhancing food production and distribution networks. Through this venture, Patanjali Foods Limited seeks to contribute to the economic development of Telangana while catering to the growing demand for quality food products.
