India, with its rich heritage in Ayurveda and vast biodiversity, is uniquely positioned to become a global leader in the export of Ayurvedic bioactives, adaptogenic herbs, and botanical extracts. The increasing global demand for natural and holistic health solutions presents a significant opportunity for India to leverage its traditional knowledge and natural resources.
The Global Surge in Demand for Ayurvedic Ingredients
The global wellness industry is witnessing a paradigm shift towards natural and plant-based remedies. Consumers are increasingly seeking alternatives to synthetic products, leading to a surge in demand for Ayurvedic ingredients known for their therapeutic properties. In 2023, the U.S. market accounted for more than 25% of the Ayurvedic and herbal products exported by India, according to the Indian Ministry of AYUSH.
Despite this growing demand, India contributes only 2.5% of the annual USD 60 billion that constitutes the total worldwide herbal market. This indicates a significant opportunity for India to expand its share in the global market by enhancing its export capabilities and meeting international quality standards.
India's Rich Biodiversity and Traditional Knowledge
India is home to over 7,500 medicinal plants, many of which are integral to Ayurvedic formulations. For instance, Picrorhiza kurroa, a Himalayan herb, has been studied for its potential in treating diabetic nephropathy through network pharmacology and molecular docking approaches.
Another example is Guggul (Commiphora mukul), whose active constituent, guggulsterone, has been identified for its therapeutic effects in treating hyper-cholesterolemia, atherosclerosis, rheumatism, and obesity.
These examples highlight the potential of India’s traditional knowledge and biodiversity in contributing to global health solutions.
Infrastructure and Industry Clusters Supporting Growth
To meet the increasing demand, India is developing specialized infrastructure to support the production and export of Ayurvedic products. The Thrissur Ayurveda Cluster in Kerala, for example, is an Ayurveda cluster situated in KINFRA Park in Koratty, Thrissur District. It includes facilities for testing, analysis, and manufacturing, aiming to ensure the safety, quality, and efficacy of Ayurvedic products.
Similarly, in Madhya Pradesh, the Ayush Nirmata Sangh has urged the state government to develop a dedicated cluster for herbal and Ayurvedic medicine manufacturers to meet increasing domestic and international demand. Around 100 units, with about 20 interested in exports, have proposed investments exceeding Rs 150 crore.
Regulatory Challenges and Quality Control
Despite the promising growth, India’s Ayurvedic export sector faces challenges related to regulatory standards and quality control. The U.S. Food and Drug Administration (FDA) has found various safety concerns with some Ayurvedic products exported to the United States. For example, the FDA discovered concerning levels of heavy metals in Ayurvedic products sold in the United States, which can pose a poisoning risk to consumers.
Educating Indian regulators, manufacturers, and exporters about FDA requirements can be a challenge because of the difference between how these products are used and regulated in India and what is allowed in the United States. Ayurvedic products as a category are not specifically defined under U.S. law.
Government Initiatives and Support
Recognizing the potential of the Ayurvedic sector, the Indian government has initiated several programs to support its growth. The Ministry of AYUSH provides financial aid and assistance with technology upgrades to exporters. It also encourages participation in international trade fairs and offers quality certifications like the AYUSH mark to ensure products meet global standards.
Furthermore, the government has initiated schemes to assist market-driven production of selective medicinal plants in specified clusters or zones, promoting the cultivation and export of high-demand Ayurvedic herbs.
Conclusion
India’s rich biodiversity, traditional knowledge in Ayurveda, and growing global demand for natural health solutions position it to dominate the global supply of Ayurvedic bioactives, adaptogenic herbs, and botanical extracts. By addressing regulatory challenges, ensuring quality control, and leveraging government support, India can build a robust global export brand for Ayurveda-backed actives, contributing significantly to the global wellness industry.
References -
- https://www.fda.gov/international-programs/global-perspective/fda-india-office-addresses-herbal-and-ayurvedic-products
- https://www.dsir.gov.in/sites/default/files/2019-10/ISM_AS_Market.pdf
- https://pubmed.ncbi.nlm.nih.gov/38356141/
- https://pubmed.ncbi.nlm.nih.gov/18078436/
- https://timesofindia.indiatimes.com/city/indore/state-govt-urged-to-develop-cluster-for-herbal-ayurvedic-medicine-makers/articleshow/121171089.cms
- https://www.fda.gov/international-programs/global-perspective/fda-india-office-addresses-herbal-and-ayurvedic-products
