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 in AYUSH education and training aim to build a skilled workforce and create nearly 3 million jobs.
Favorable
Regulatory Environment
* Government initiatives such as the inclusion of AYUSH treatments under insurance coverage, expansion within Ayushman Bharat, and implementation of quality assurance schemes like AOGUSY reflect a strengthening regulatory framework, enhancing standardisation, credibility, and institutional adoption of AYUSH systems.
Increasing
Interest
* The number of MSMEs operating in the AYUSH sector has witnessed strong growth, increasing from 38,216 in August 2021 to 53,023 in January 2023, and further to 92,653 by August 2025. This sharp rise reflects accelerating formalisation, growing entrepreneurial activity and increasing market demand across the AYUSH ecosystem.
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 Ministry of AYUSH’s Union Budget allocation for FY27 has increased to Rs. 4,408.93 crore (US$ 501.0 million), marking a 20.1% rise from the FY26 budget estimate of Rs. 3,671.82 crore (US$ 417.3 million).
In the Union Budget FY27, the National Medicinal Plants Board (NMPB) received an allocation of Rs. 18.16 crore (US$ 2.1 million), while the Pharmacopoeia Commission for Indian Medicine and Homoeopathy (PCIM&H) was allocated Rs. 22.26 crore (US$ 2.5 million), supporting medicinal plant development and standardisation of AYUSH systems.
India’s exports of AYUSH and herbal products stood at 114.9 million kgs, valued at Rs. 5,110.4 crore (US$ 580.7 million) during April 2025 to February 2026.
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 industry has witnessed remarkable growth, with manufacturing industry reached 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.
The Indian Ayush market is projected to grow from US$ 43.3 billion in 2024 to US$ 200 billion by 2030, reflecting an exponential growth of eight times over the past decade.
India reported a 15-fold rise in the Ayush sector over ten years (2015-2025), alongside supplying medicines to over 200 countries, meeting 60% of global vaccine demand, providing health cover to over 600 million people, and supporting over 1,600 Global Capability Centres driving pharma innovation.
The India AYUSH market was valued at Rs. 2.33 lakh crore (US$ 26.53 billion) in 2026 and is projected to reach Rs. 3.37 lakh crore (US$ 36.62 billion) by 2031, expanding at a CAGR of 6.66% during 2026–2031. The growth is expected to be driven by rising demand for preventive healthcare and herbal wellness products.
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. India’s wellness tourism, valued at Rs. 1,64,164 crore (US$ 19.43 billion) in 2024 and projected to reach Rs. 2,57,237 crore (US$ 29.88 billion) by 2031, is growing rapidly due to affordable Ayurvedic and yoga experiences and initiatives like the Ayush visa, 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.
Uttar Pradesh is offering a 30% capital investment subsidy for setting up wellness centres and resorts that provide AYUSH-based therapies like Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homoeopathy.
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:
- India is strengthening its position as a global hub for wellness and medical value tourism through the proposed establishment of five Regional Medical Hubs integrating AYUSH centres, diagnostics and rehabilitation services. The Union Budget further announced the setting up of three new All India Institutes of Ayurveda to expand education, clinical care and research capacity. In addition, the WHO Global Traditional Medicine Centre, Jamnagar is being upgraded to enhance global research and training in traditional medicine.
- Under the National Ayush Mission (NAM), the government is supporting the expansion of AYUSH healthcare infrastructure through financial assistance to States/UTs for establishing 10, 30 and 50-bedded Integrated AYUSH Hospitals (IAHs). These facilities are equipped with essential diagnostic services and aim to strengthen access to integrated and holistic healthcare across regions.
- Agricultural and Processed Food Products Export Development Authority’s (APEDA’s) BHARATI initiative aims to boost India’s agri-food exports to Rs. 4,40,150 crore (US$ 50 billion) by 2030 while supporting 100 startups, including those innovating in AYUSH-based food and wellness products.
- In November 2025, Madhya Pradesh cabinet approved 373 regular posts and 806 on-call positions for AYUSH hospitals across 13 districts, including new 50-bed and 30-bed facilities.
- In November 2025, India and Germany deepened collaboration in traditional and integrative healthcare at the third Joint Working Group Meeting in Berlin, advancing joint research, regulatory alignment, and public-health integration of evidence-based traditional medicine.
- In September 2025, India and Mauritius expanded Ayush collaboration through the first overseas Jan Aushadhi Kendra and an AYUSH Centre of Excellence, strengthening healthcare and traditional medicine ties.
- On June 5, 2025, Ujjain hosted the Spiritual & Wellness Summit, with Madhya Pradesh advancing its vision to become a global centre for holistic health, spiritual tourism, and sustainable wellness living.
- On April 4, 2025, Prime Minister Mr. Narendra Modi announced the establishment of a Centre of Excellence to promote research, training, and global dissemination of Traditional Medicine during the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit in Bangkok, strengthening India-Thailand collaboration in Ayurveda and traditional healing systems.
- In May 2025, the Ministry of Ayush and WHO signed a Memorandum of Understanding (MoU) to create a Traditional Medicine module in the International Classification of Health Interventions (ICHI), formally recognising Ayurveda, Yoga, Siddha, and Unani, backed by India’s Rs. 26 crore (US$ 3 million) contribution to boost global access, clinical documentation, and evidence-based integration. India has also signed 25 country-level MoUs, 52 institute-level agreements, set up 15 Academic Chairs, and established 43 AYUSH Information Cells in 39 countries, strengthening research, education, and international outreach.
- Uttar Pradesh is expanding AYUSH services with 100-bed wellness centres in every district, six new AYUSH colleges, and subsidies of 30-75% for key medicinal crops, aiming to boost rural incomes, create jobs, and strengthen health tourism.
- The Ministry of AYUSH is globalising traditional medicine through the International Cooperation Scheme and WHO projects like the Global Traditional Medicine Centre (GTMC) and the International Classification of Health Interventions (ICHI) module.
- The WHO recognised India’s pioneering AI-driven innovations in Ayush, including platforms like the SAHI, NAMASTE, and Ayush Research Portals, Ayurgenomics, and predictive diagnostics, highlighting the country’s leadership in integrating traditional medicine with digital health and evidence-based global healthcare.
- On January 25, 2025, India’s Prime Minister, Mr. Narendra Modi, and Indonesia’s President, Mr. Prabowo Subianto, witnessed the exchange of a Memorandum of Understanding (MoU) between the Ministry of Ayush, Government of India, and the Indonesian Food and Drug Authority. The MoU focuses on Traditional Medicine Quality Assurance, marking a significant step in enhancing global standards for traditional medicine.
- In February 2025, a significant initiative was taken to enhance the well-being of senior citizens and tackle the rising issue of substance abuse, the Ministry of Ayush and the Department of Social Justice and Empowerment (DoSJE) have formalized a Memorandum of Understanding (MoU). This strategic collaboration aims to implement Ayush-based interventions that promote geriatric healthcare and address substance abuse concerns. Rising income means a steady growth in the ability to access healthcare and related services.
- In January 2025, at Hyderabad House in New Delhi, India’s Prime Minister Mr. Narendra Modi and Indonesia’s President Mr. Prabowo Subianto observed the exchange of a Memorandum of Understanding (MoU) between the Ministry of Ayush, Government of India, and the Indonesian Food and Drug Authority. This MoU is centered on Traditional Medicine Quality Assurance and represents a significant advancement in the enhancement of global standards for traditional medicine.
- In November 2024, Prime Minister Mr. Narendra Modi inaugurated and laid the foundation stone for multiple development projects in Darbhanga, Bihar, with a total investment of approximately Rs. 12,100 crore (US$ 1.43 billion). A prominent highlight is the establishment of the All India Institute of Medical Sciences (AIIMS) in Darbhanga, which aims to deliver advanced healthcare services to Bihar and neighbouring regions, including parts of West Bengal and Nepal.
- On October 30, 2024, the Ayush Medical Value Travel Summit 2024 was inaugurated in Mumbai by the Union Minister of State (I/C), Ministry of Ayush, aiming to position India as a global leader in health tourism by promoting Ayush systems (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) and enhancing accessibility through initiatives like "Desh ka Prakrutik Parikshan - Ghar Ghar tak Ayurved.
- On August 30, 2024, Chief Minister of Kerala Mr. Pinarayi Vijay announced a Rs. 1,000 crore (US$ 119 million) investment over the past three years to develop Ayush infrastructure in the state, including an International Institute of Ayurveda Research and a new Ayurveda medical college, during the inauguration of the two-day Global Ayurveda Summit and Kerala Healthcare Tourism in Kochi.
- 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.
- 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.
Government Initiatives
Some of the major initiatives taken by the Government of India to promote the Indian healthcare industry are as follows:
- Under the National Ayush Mission (NAM), the government is strengthening AYUSH infrastructure through co-location of services at PHCs/CHCs/DHs, establishment of hospitals and dispensaries, and operationalisation of 12,500 Ayushman Arogya Mandirs across States/UTs.
- In addition, the Ayurgyan scheme is promoting capacity building and awareness, with 158 training programmes conducted over the last three years, while over Rs. 2,551 crore (US$ 289.9 million) has been allocated under NAM to enhance access and service delivery in traditional healthcare systems.
- Government supported the establishment of 5 State Drug Testing Laboratories, 8 pharmacies, and Pharmacovigilance Centres under the AOGUSY scheme in FY25. A total allocation of Rs. 11.46 crore (US$ 1.3 million) was approved to enhance drug quality assurance, standardisation and safety monitoring across the AYUSH ecosystem.
- Under digital transformation initiatives, the upgraded e-Charak Portal is enhancing transparency, traceability and stakeholder integration across the medicinal plant supply chain. Aligned with the broader Ayush Grid framework, such platforms are improving accessibility, streamlining backend operations and strengthening coordination across the AYUSH ecosystem.
- The initiative of establishment of 12,500 Ayushman Arogya Mandir (Ayush) has significantly enhanced healthcare availability, with the number of beneficiaries rising from 1.5 crore in 2021 to more than 11.5 crore in 2025.
- As of November 2024, the Ministry of AYUSH has certified 1039 Ayushman Arogya Mandir facilities for NABH Entry Level Certification. Additionally, 10,000 Geriatric camps were organized across India from June to September 2024, focusing on health assessments for the elderly.
- 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.
- 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.
- 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.
- 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$ 26.53 billion in 2026. This translates to a more than tenfold increase in just twelve 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 2026-27
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