India’s Ayush exports grew to $688.89 million in FY25, supported by new trade agreements with the UK and EU. However, the sector faces hurdles in global market access due to strict non-tariff barriers, product approval delays, and limited recognition of traditional practitioners. Investors should monitor how effectively these bilateral MoUs reduce compliance costs and open new international markets for herbal products.
India is intensifying its efforts to position its traditional medicine systems—Ayurveda, Yoga, Naturopathy, Unani, Siddha, Sowa-Rigpa, and Homoeopathy—as significant players in the global health and wellness market. Driven by strategic trade agreements and bilateral Memoranda of Understanding (MoUs), the government aims to break into major international economies. Recent data highlights the scale of this ambition, with Ayush exports reaching $688.89 million in the 2024–25 financial year, reflecting a steady growth of 6.11%.
To support this expansion, the government has allocated ₹4,408 crore to the Ayush sector in the 2026-27 Union Budget, marking a 66% increase for the National Ayush Mission. Trade pacts, such as the one with the United Kingdom that became effective in July 2026, have eliminated import duties on Ayush medicines, a move expected to lower costs and boost volume. Similar cooperative frameworks are being established with the European Union and Oman to facilitate joint research and recognize the qualifications of traditional medicine practitioners.
Challenges in Market Access
Despite these diplomatic milestones, the path to international market dominance remains complex. While trade deals successfully reduce tariffs, they often do not resolve deeper non-tariff barriers. In key regions like the European Union, the United States, and Australia, Ayush products frequently face stringent regulatory scrutiny. Many of these nations categorize herbal products as dietary supplements rather than formal medicine, which limits their acceptance and market potential compared to conventional pharmaceuticals.
A significant operational challenge for exporters is complying with Maximum Residue Limits (MRL) for heavy metals. Regulations in the EU and other developed nations require rigorous safety evidence that traditional formulations—often containing complex, multi-herb combinations—frequently struggle to provide. These markets often demand detailed clinical trial data for individual ingredients and their interactions, a costly and time-consuming requirement for traditional remedies that have historically relied on long-term usage evidence rather than modern clinical trials.
Furthermore, the success of these trade agreements depends heavily on the practical, on-the-ground implementation of practitioner mobility and product registration. Moving forward, the ability of the industry to scale will depend on how effectively Indian regulators can align with international quality standards. A government-industry session held in July 2026 emphasized the critical need to address these quality protocols. Investors in the sector should monitor how these bilateral discussions translate into concrete product approvals and whether companies can successfully adapt to the complex regulatory environments of the EU and North America to turn export potential into sustained revenue growth.