Dr P M Varier
Managing Trustee and Chief Physician
Arya Vaidya Sala Kottakkal
As India advances towards its ambitious goal of building a USD 200 billion AYUSH sector by 2030, the emphasis is increasingly on execution. Achieving this scale will require more than policy intent. It calls for structural reforms, institutional coordination, and targeted investments. A closer look at the sector reveals a set of interlinked priorities that must shape the ‘way forward’ for policymakers and healthcare industry alike.
1. Reforming Policy and Regulatory Frameworks
India already has a broad policy foundation for traditional medicine, supported by global frameworks from the World Health Organization and national guidelines from the Ministry of Ayush. However, the need of the hour is regulatory clarity and consistency.
One way forward is the creation of nodal agencies at both Central and State levels, each backed by dedicated budgets and structured five-year plans for Ayurveda and allied systems. Such institutional mechanisms can provide a clear roadmap for investors while aligning state-level initiatives with national priorities.
Equally important is the need for seamless coordination between states and the Centre. The challenges being faced by the industry range from licensing delays to compliance hurdles. These can be addressed through structured engagement with pan-Indian industry bodies. The formation of multi-stakeholder working groups, comprising policymakers, regulators, and industry representatives, could significantly accelerate approvals for new products, R&D initiatives, manufacturing facilities, and hospitals.
Time-bound approvals must become the norm. Leveraging technology, including artificial intelligence, to identify credible investors and provide ‘green channel’ clearances could further improve ease of doing business. Additionally, institutional platforms for sharing best practices across states can help standardise processes and drive sector-wide efficiency.
2. Bridging the Evidence Gap
A critical constraint for the Ayush sector remains the lack of robust, evidence-based data on clinical outcomes and service delivery. This gap continues to affect investor confidence as well as policy formulation.
In contrast, Traditional Chinese Medicine (TCM) has benefitted from sustained and structured state support. Its integration into China’s national healthcare system dates back to the 1950s, with mandates requiring TCM departments in government-funded hospitals to work alongside modern medicine.
India has made initial efforts in integrative care. Institutions such as ours (Arya Vaidya Sala, Kottakkal) have developed models combining Ayurveda with modern medical practices, albeit on a limited scale. However, scaling such efforts requires significantly higher investment in research and clinical validation.
The disparity in funding is notable. While India has allocated approximately USD 5.53 billion for evidence-based treatment in the Union Budget 2026/27, China’s investment in TCM research is estimated at around USD 200 billion per year on average during 2019–2027. Overall, China’s budgetary allocation for TCM is roughly four times that of India’s Ayush sector, which stood at about ₹4400 crore in 2025/26. Increasing public investment in research is therefore essential to generate credible evidence, attract both domestic and foreign investment, and enhance global acceptance. Although India has made sustainable and substantial progress in this area over the past decade, the comparison with China here should be considered only as a reference point, which should push us to deliver more in the coming years.
3. Strengthening Quality Standards and Building Trust
Standardisation remains a pressing issue across the Ayush value chain. Variability in the quality of raw materials, products, and services continues to impact trust and scalability. The shortage of advanced testing laboratories further compounds the problem.
A nationwide framework for uniform quality standards is essential. Expanding the network of NABL-accredited laboratories in major cities can facilitate rigorous testing and certification. Simultaneously, incentivising healthcare providers to obtain NABH accreditation for hospitals and NABL accreditation for laboratories can drive compliance and credibility.
Leading institutions are already demonstrating best practices in quality control. These include general chemical analysis as per Active Pharmaceutical Ingredient (API) protocols, High-Performance Thin-Layer Chromatography (HPTLC) profiling for phytochemical consistency, qualitative and quantitative analysis of major phytochemical groups, and stringent testing for heavy metals, aflatoxins, and pesticide residues. Scaling such practices across the sector will be critical for building trust in both domestic and global markets.
4. Securing Raw Material Supply Chains
The sustainability of the Ayush sector is closely tied to the availability of high-quality medicinal raw materials. A structured approach to cultivation is therefore essential.
The Ministry of Ayush, in collaboration with state medicinal plant boards, can drive planned cultivation programmes in peripheral and degraded forest areas. Partnering with tribal organisations, cooperatives, and self-help groups, such as Kudumbashree in Kerala, can generate livelihoods while promoting social forestry.
Industry participation will be key. Assured buy-back arrangements between manufacturers and cultivation groups can stabilise supply chains and incentivise farmers. Such models also help address regulatory requirements under biodiversity laws, including provisions related to access and benefit sharing.
Institutional initiatives provide a blueprint. Arya Vaidya Sala, Kottakkal, for instance, cultivates medicinal plants across approximately 250 acres and supports farmers by producing and distributing high-quality saplings through biotechnology.
5. Investing in Human Capital
The growth of the Ayush sector will ultimately depend on the quality of its human resources. Skill development programmes, such as the Additional Skill Acquisition Programme (ASAP) in Kerala and initiatives under the National Council for Vocational Education and Training (NCVET), have already contributed to building a trained workforce.
These efforts need to be expanded and standardised. Therapists, clinicians, and support staff must be trained to meet global service standards. At the same time, academic institutions offering BAMS, MD, and other specialised courses require greater standardisation to ensure consistency in education and practice.
6. Creating World-class Healthcare Infrastructure
The development of world-class hospitals and wellness centres is central to positioning India as a global hub for Ayush-based healthcare. High-quality infrastructure, combined with trained professionals and standardised protocols, can significantly boost Medical Value Tourism (MVT).
There are a few such NABH-accredited institutions in the country, including four such hospitals set up by Arya Vaidya Sala, which have set setting benchmarks. There is a need to set up more such high-end healthcare facilities in the country. For instance, the scale of operations in our facilities is noteworthy. Our hospitals and treatment centres collectively serve over 17,000 patients annually, with nearly 30% comprising international patients and non-resident Indians, highlighting the sector’s global appeal.
7. Expanding Insurance Coverage
Insurance integration is a critical enabler for mainstreaming Ayurveda. Progress has been made, with many treatments offered in NABH-accredited hospitals now covered under insurance schemes. However, significant gaps remain.
There is a need to build greater awareness around existing government guidelines, IRDAI directives, and treatment protocols. Developing a standardised Ayurveda insurance framework can provide clarity for both providers and insurers.
A formal working group comprising Ayurveda hospital networks, insurance companies, third-party administrators (TPAs), the Ministry of Ayush, and industry and advocacy bodies can help streamline processes, update documentation, and expand coverage.
8. Building Awareness and Market Demand
For Ayurveda to achieve mass adoption, it must be supported by sustained awareness and branding efforts. Public–private partnerships can play a vital role in driving outreach through both traditional and digital platforms. This newly launched international magazine, Ayur World, by the World Ayurveda Foundation is a step in the right direction.
Campaigns leveraging websites, social media, blogs, and short-form video content can engage diverse audiences. In a multilingual country like India, communication strategies must be inclusive, targeting all age groups through schools, colleges, workplaces, and community organisations. Integrating basic knowledge of Ayurveda and preventive health practices into school curricula could further strengthen long-term adoption.
Institutions have already taken proactive steps in this direction. Through seminars, continuing medical education (CMEs), medical camps, and outreach programmes for students, senior citizens, and community groups, organisations like Arya Vaidya Sala continue to promote awareness and education.
Towards 2030: a Coordinated Push
The pathway to a USD 200 billion Ayush sector is challenging, but achievable. Addressing regulatory inefficiencies, strengthening research and evidence, ensuring quality, securing supply chains, investing in human capital, expanding infrastructure, integrating insurance, building consumer awareness, etc. should not be seen as isolated priorities but interconnected levers.
A coordinated policy framework and action plan built around these pillars can unlock the sector’s full potential. With sustained commitment, Ayush can emerge not only as a cornerstone of India’s healthcare system but also as a significant contributor to the global wellness economy.
