Invigorating the Ayush industry

In Context 

• Ayush Industry integration into mainstream systems will give wider acceptance to traditional systems of the country.
  • AYUSH is the acronym for alternate systems of medicine — Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy — and a separate ministry of AYUSH was formed by the government to promote these systems.

Ayush Industry in India 

• India’s strong ancient knowledge on AYUSH and well-developed supply chain network will help the export market to grow due to an increase in demand from international markets.
• The Ayush industry in India can provide cost-effective healthcare to people across States. It has all the ingredients of success, to co-exist with the modern health systems, as a choice-based system of traditional medicine.
• India has been witnessing huge investments in the AYUSH market with the world believing in the ancient Indian medicinal systems .
• Export partners:
  • India’s major AYUSH export partners include UAE, Russia, USA, Japan and many more nations that are diversified across continents.
  •  India has a strong grip on the Asia Pacific market which is expected to rise exponentially over the next 5 years. 
  • In addition to this, Latin American and African markets are expected to see significant growth which should be looked at as areas of opportunity for both Indian AYUSH conglomerates and potential FDI (foreign direct investment) firms.

Key Data related to Traditional Medicine industry  

• Globally:
  • The global market for herbal medicine was valued at $657.5 billion in 2020.
  •  It is expected to grow to $746.9 billion in 2022.
    • In China, the traditional medicine industry had total revenue of $37.41 billion in 2018
      • In fact, the Healthy China 2030 plan forecasts that the value of traditional Chinese medicine (TCM) market may reach $737.9 billion within China and globally by 2030.
• India:
  • The AYUSH sector was less than $3 billion in 2014, which had now crossed $18 billion and growing rapidly.
  • The Indian Ayush sector has grown by 17% between 2014 and 2020. 
  • The industry is projected to reach $23.3 billion in 2022.
    • India is projected to become a leader in the wellness industry. 

Government Policies and Intervention 

• National Ayush Mission (NAM)
  • It was launched in 2014 by the Department of Ayush, Ministry of Health and Family Welfare.
  • It is a Centrally Sponsored Scheme which is being implemented through States/UTs for development and promotion of Ayurveda, Yoga &  Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) systems of medicine. 
  • It envisages better access to AYUSH services through increase in  number of AYUSH hospitals and dispensaries, ensuring availability of AYUSH drugs and  trained manpower.

• Component
  • Under the ‘Medicinal Plants’ component of the NAM scheme (2015–16 to 2020–21), the cultivation of prioritised medicinal plants in identified clusters/zones is being supported. 
    • Cultivation of plants on farmer’s land, establishment of nurseries with backward linkages, post-harvest management with forward linkages, and primary processing, marketing, etc., are all covered under the scheme. 
  • State Medicinal Plant Boards (SMPBs)
    • The National Medicinal Plant Board (NMPB) implements the medicinal plant component of Ayush through state bodies—State Medicinal Plant Boards (SMPBs). 

• WHO-Global Centre for Traditional Medicine 
  • The Prime Minister of India laid the foundation of the WHO-Global Centre for Traditional Medicine in Jamnagar .
  • This will be the first and only global outpost centre for traditional medicine across the world.
• Central ministry and  AYUSH mark
  • India has a central ministry dedicated to these alternative medicine systems. 
  • India will soon introduce the AYUSH mark, which will give authenticity to quality AYUSH products of the country. 

• Modernization and expansion of AYUSH e-market portal 
  • The government is also working on the modernization and expansion of the AYUSH e-market portal to connect farmers with companies which make AYUSH products.
• AYUSH Aahar’
  • The new category ‘AYUSH Aahar’ introduced by the FSSAI in its regulations will help the producers of herbal nutritional supplements.
• Special category visa
  • Centre’s announcement for launching a special category visa for those wishing to travel to the country for availing AYUSH therapies. 

Challenges /Issues linked to the Ayush industry 

• The industry faces challenges related to considerable cost of  manufacturing disability, among other things, on account of lack of adequate infrastructure,  domestic supply chain and logistics
• High cost of finance, inadequate availability of quality power, limited design capabilities and low investments on R&D and skill development.

Conclusion and Way Forward 

• We need to promote AYUSH with the slogan ‘Heal in India’. 
• The farmers need to be encouraged to take up cultivation of medicinal plants.
• The Ayush sector requires a multi-dimensional thrust, ranging from initiatives at the institutional level, massive awareness and promotion of cultivation of medicinal plants by farmers, to trade-related interventions and quality focus measures.
• Strengthening of domestic standards subscriptions, ensuring traceability of the value chain, and formulating global standards with international standard bodies are some measures that may be required for confidence in brand AYUSH globally.
•  Foreign trade policy should provide proper incentives to the firms for active participation at global level. 

Moreover, growing R&D by firms would support maintaining competitiveness in the herbal plants and extract sector.