Foreign Direct Investment (FDI) in AYUSH Sectors - Procedure, Fees and Documents

Updated on May 06, 2025 02:36:55 PM

In the wake of driving the world in the direction of establishing better health facilities in terms of medical sustainability and herbal aid for curing ordinary ailments to abnormal illnesses, the AYUSH sector is going to rank first largest hub globally among foreign investors, entrepreneurs, innovators, and other stakeholders by 2026 due to its unmatched improvement witness in the network within the industry and the steps taken to stress the need for healthy and natural remedies to render a long term boon for people. Today India ranks 10th position in the range of 46 destinations of the world in the credit of Medical Tourism Index.

What Data Says?

The AYUSH sector is divided into five main sub-sectors including- herbal plants, Nutraceuticals, Pharmaceuticals, Cosmeceuticals, plant derivatives, and plant extract. Out of these sectors, herbal plant shares’ accounted for 43.35% globally to unlock the successful manifestation of traditional opportunities to stimulate the natural healing process. This sector emphasizes the curing of ailments by following the path of holistic value of curing, which has been considerably disappearing in the past few decades due to the rising rule of chemical-oriented medications across nations.

The AYUSH has forecasted a CAGR of up to 16% by the end of FY 21-26, along with an FDI equity inflow worth US$7 Tn in FY 2025. The prediction provides the present performance of the research center, extending the number of traditional Indian medical hospitals and infrastructure lays a hint that focuses on the robust picture of notched growth and expansion, with the 13% MVT (Medical Value Travel) market size after two years.

To educate the people about the significance of natural ingredients and the peculiarity of nature-oriented medications, AYUSH has been lifting global investment and innovation summits since FY 14.

In addition, the Ministry of Ayush has laid the investment outlay increased from 20% to ₹ 3647 crore fund, allocation extended centrally to NAM (National Ayush Mission) has grown the investment up to 50% from ₹8oo crore to ₹ 1200 crore.

For the Participation!

To participate in FDI in the AYUSH sector, applicants are required to register under the Foreign Investment Facilitation Portal (FIFP). The procedure can be puzzling for any newcomer applicant since it incorporates several terms and conditions without rendering direct access to portals that can generate approvals for FDI.

table content image

Objectives of FDI in AYUSH Sectors

Following are the objectives given for the FDI in AYUSH sector:

  • To set up the values and practices of AYUSH (Ayurvedic, Yoga, Unani, Siddha and Homeopathy) within and outside the border of the nation with the focus to spread the medical wellness entities offering natural treatment,
  • To lift up and strengthen research institutions for experiencing holistic approach towards curing ailments,
  • To unfold Pharmacopoeial standards for Indian medicine ecosystem
pu seperater

Components Permitted Under AYUSH Sectors

The components are allowed up to full 100% FDI without approval is given as follows:

  • Greenfield Projects
  • Brownfield Projects (require FDI approval above 74%)b
  • Ayush Visa
  • Ayush Marks
  • Ayush Parks

Note: In case several companies fall under the category of Pharmaceuticals Sector, then it requires approval of the government beyond 74%.

pu seperater

Documents Required For FDI in AYUSH Sectors

Many documents are required for FDI in AYUSH Sectors which are as follows:

  • List of names, addresses, and identification proof of all foreign collaborators of the investor company/entity
  • From both investor/investee entities- Certification of Incorporation and MoA
  • Copy of joint venture agreement/ shareholders agreement/technology
  • Copy of downstream intimation
  • Copy of relevant past FIPB/SIA/RBI joint with the current proposal
  • Copy of Downstream Intimation
  • An affidavit to ensure all documents are relevant
  • Valuation certification approved by a certified chartered accountant
  • CS Certificate
  • Declaration by the Authorized Representative of the Indian Company/LLP
  • Pre and post-shareholding pattern in the Indian company
  • Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation (if applicable)
  • RBI approval on the amount of refund concerning the amount of the issue (if applicable)
  • Valuation certificate
  • Approval letter (if non-compliant with the guidelines – if applicable)
  • Relevant RBI approvals for an issue of equity shares against funds payable to the foreign investor
  • FIRC/ Debit statement
  • Know Your Customer (KYC)
Ayush_doc
pu seperater

Procedure of FDI In AYUSH Sectors (Government)

Following are the procedures which required at the time of FDI in the AYUSH sector:

  1. FILLING APPLICATION FORM ONLINE - Applicants must fill out the online application form along with the relevant documents for making out the proposal for Foreign Direct Investment
  2. SENDING APPLICATION TO POTENTIAL AUTHORITY - Filing the proposal for FDI online within two working days, DIPP then will address the concerned administrative ministry to transfer the proposal of applicants electronically
  3. SUBMIT REQUISITE PHYSICAL DOCUMENTS - Collect all the requisite documents for continuing the process of the investment proposal. In case documents may be found incorrect, applicants will be held responsible in case of any deviation found.
  4. PROCESSING AND APPROVAL/ REJECTION OF APPLICATION: - The DIPP along with potential authorities will process the application internally and recognize various ministries for adding several comments such as the Ministry of Home Affairs, Reserve Bank of India, Ministry of External Affairs, Ministry Of Finances, etc.
pu seperater

Key Advantages For Investors

There are numerous significant advantages for investors that compel them to invest in FDI in India's AYUSH sector:

  1. Growing Demand - The upsurging demand witnessed among various stakeholders for the AYUSH sector as one of the holistic and sustainable alternatives to treat variables of chronic illnesses along a perfect integration with conventional medications.
  2. Policy Support - The government of India has already increased its spending target and aims to achieve Gross Domestic Product from 1.3% to 3.1%, lifting the data slope to a higher rank. In order to enhance consistency in productivity, the government has sponsored several schemes such as NAM (National AYUSH Mission) and NHM (National Health Mission).
  3. Rising investments - The scope of rapid escalation in AYUSH investments attracted a Letter of Intent above ₹ 9000 crore from passionate investors. Furthermore, the AYUSH sector has already projected an investment of over ₹ 1,85,000 Cr in FY 22, accelerating this sector to the top fifth position in health services and MVT (Medical Value Travel) in India.
  4. Opportunities - The government plans to channel investment in infrastructure projects over ₹ 1864.29 Cr with the opportunities to set up around 21 projects by keeping the capacity to generate additional 3 Mn job opportunities. Moreover, the Ministry of AYUSH has also taken several steps for the investors, such as E-Charak, E-aushadhi, Ayush Grid, Ayush HMIS, etc., in showcasing investment-friendly output.
pu seperater

Benefits of FDI in AYUSH Sectors

ayush_sector_benefits

The benefits of FDI in AYUSH sector is enlisted below:

  1. Healthcare diversification options - Establish the restorative approach towards healthcare units in building the better formulation of manifolds of AYUSH therapies, practices, and products.
  2. Skill development and shaping capacity - FDI in the AYUSH sector instills the elevation of skills by ensuring healthcare training and development research. This stimulates attention in healthcare professionals sectors and research in the natural medications sector.
  3. Promoting global expansion - The marketing of traditional Indian approaches can promote product competition across global rivalry and create multiple phenomena for economic growth and employment opportunities for both local people and foreign investors.
  4. Advent of technology - The strengthened healthcare education can generate knowledge within the human force, and the possibility of venting up innovation along with technology footprints can also be adopted in order to boost the effectiveness of AYUSH products and practices.
  5. Modernization and infrastructural development - Accessing high-quality AYUSH products can directly affect the modernization input and shape infrastructural development in the country's quality control measures, healthcare institutions, and manufacturing segments.
pu seperater

Conclusion

Putting up the Indian traditional healthcare model to cure and treat the manifolds of ailments, the integration of conventional remedies with Ayush systems may provide an edge to educate the globe beyond the Indian boundary about the significance of setting up healthcare infrastructure, research centers, clinical expertise, and an entire view of holistic and therapeutic approach. This sector will soon appear to target new potential in turning the GDP from 1.3% to 3.1%, which will craft its splendid system of medicines.

pu seperater

Attention Investors!

Several other factors to consider for investors while investing in international markets are listed below:

  • Before involving huge investments, applicants must be prerequisites to check the kind of companies the government allows them to invest in. Because investment in the stock market is volatile and may not recover your loss, leading to unwriggled investment which will not recover at the time of redemption of company loss.
  • Additionally, before application applicants need to inspect and ensure that all the requisite documents are submitted online without discovering any omissions and incorrect information within the documents. 100% Foreign Direct Investment (FDI) is largely inspired to bring investors forth along with certain advantages that benefit sectors.
pu seperater
Why Professional Utilities?

At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.

All Corporate Services at Professional Utilities

One Stop Corporate Solution

All Corporate Services at Professional Utilities

PAN India
Services

All Corporate Services at Professional Utilities

Free Expert
Assistance

All Corporate Services at Professional Utilities

Google Verified
Business

All Corporate Services at Professional Utilities

Dedicated Support
Staff

All Corporate Services at Professional Utilities

Money-Back
Guarantee

Trusted By
stay-vista.svg
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
goog glamm logo
stay-vista.svg
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
goog glamm logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
borosil-grey.png
corefitplus.png
cult_logo
myglamm
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
client logo
borosil-grey.png
corefitplus.png
cult_logo
myglamm
pu seperater

Frequently Asked Questions

What is AYUSH?

AYUSH stands on the acronym of Ayush, Yoga, Unani, Siddha and Homeopathy regulated by the Ministry of Ayush, aspired to spread the significance of the traditional medicines and healthcare by strengthening to develop research centers, expertise in clinical formulation, and AYUSH products and practices.

What is the budget of Ayush?

The budget of AYUSH has been estimated worth ₹ 1864.29 Cr for the year 2023-2024 in the Union Budget tabled by the Hon’ble finance minister Nirmala Sitaraman.

How many AYUSH doctors are there in India?

There are around 565,000 AYUSH doctors in India in the ratio of 1: 834 associated with the population of nurses in the ratio of 1: 476 around the 361,400 population in India.

What is the market size of AYUSH in India?

The market size of AYUSH in India saw an increase up to 17 % between FY 14-20 with the turnover of US$ 18.1 billion in FY 2020.

Speak Directly to our Expert Today

Reliable

Reliable

Affordable

Affordable

Assurity

Assured