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.
Following are the objectives given for the FDI in AYUSH sector:
The components are allowed up to full 100% FDI without approval is given as follows:
Note: In case several companies fall under the category of Pharmaceuticals Sector, then it requires approval of the government beyond 74%.
Many documents are required for FDI in AYUSH Sectors which are as follows:
Following are the procedures which required at the time of FDI in the AYUSH sector:
There are numerous significant advantages for investors that compel them to invest in FDI in India's AYUSH sector:
The benefits of FDI in AYUSH sector is enlisted below:
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.
Several other factors to consider for investors while investing in international markets are listed below:
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Frequently Asked Questions
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.
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.
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.
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.
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