India’s AYUSH sector is moving beyond its traditional focus on medical education and primary healthcare, with broader insurance coverage and investment in hospital-based services potentially supporting its next phase of growth. The development comes as the government works to strengthen AYUSH insurance coverage, standardisation, research, and integration with the wider healthcare system.
AYUSH Healthcare Infrastructure Expands Over the Past Decade
The number of undergraduate colleges offering AYUSH courses increased from 520 in 2013–14 to 921 in 2025–26, according to information provided by the Ministry of Ayush to Parliament.
Public healthcare infrastructure has also expanded, although growth has varied across different levels of care.
The number of dedicated AYUSH dispensaries increased from 26,130 in 2013–14 to 37,804 in 2024–25. During the same period, the number of AYUSH hospitals rose from 3,605 to 3,885.
These figures indicate that much of the sector’s infrastructure growth has occurred at the primary-care level, through dispensaries and the wider public health network. Strengthening secondary and tertiary care remains an important consideration for developing more structured hospital-based services.
Insurance Coverage May Support Hospital-Based AYUSH Care
Insurance coverage is becoming an important consideration in the development of organised AYUSH healthcare.
In its 2024 health insurance regulatory framework, the Insurance Regulatory and Development Authority of India (IRDAI) required insurers to offer products, add-ons, or riders covering different systems of medicine, including AYUSH, subject to the applicable regulatory framework and policy conditions.
The Ministry of Ayush’s Annual Report 2024–25 states that IRDAI’s January 2024 guidelines advised insurers to provide AYUSH coverage with cashless facilities and claims up to the total sum insured, subject to the terms and conditions of the relevant policy.
In 2026, the Ministry of Ayush revised benchmark rates and added procedures for insurance coverage involving Ayurveda, Siddha, Unani, and Yoga and Naturopathy treatments.
These measures aim to improve standardisation and facilitate the inclusion of AYUSH treatments in formal insurance arrangements.
Smaller Hospitals May Have a Role
The expansion of hospital-based AYUSH care may depend on more than investment by large corporate hospitals.
According to a report by Business Standard, industry experts have highlighted the potential role of smaller, doctor-led facilities in increasing secondary-care capacity, particularly in smaller cities and towns.
Such facilities could help bridge the gap between primary-care clinics and larger hospitals if they meet the relevant regulatory, clinical, infrastructure, and quality requirements.
More organised hospital-based services could potentially improve access to AYUSH care for patients whose treatments are covered by insurance or government health schemes.
However, coverage depends on the terms of individual policies, eligible procedures, provider empanelment, and applicable regulatory requirements. Insurance coverage should not be interpreted as automatic reimbursement for every AYUSH treatment.
Why Inclusion in Ayushman Bharat Matters
The possible expansion of AYUSH treatment packages under Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) could represent an important development for the sector.
The Ministry of Ayush has pursued the inclusion of AYUSH interventions under AB-PMJAY since 2018. In its 2024–25 Annual Report, the Ministry stated that a working group had prepared a framework for 150 Ayurveda treatment packages, which was submitted to the National Health Authority alongside Standard Chikitsa Guidelines.
This remains a policy development and should not be interpreted as confirmation that all 150 packages are already covered under AB-PMJAY.
Broader inclusion in government-funded healthcare will depend on decisions concerning treatment packages, reimbursement rates, clinical protocols, eligibility, and implementation by the relevant authorities.
Evidence and Standardisation Remain Essential
As AYUSH services expand into hospital-based care and insurance arrangements, evidence and standardisation are becoming increasingly important.
The Business Standard report highlighted the need for standard clinical practice guidelines, clinical trials, real-world evidence, outcome monitoring, and accreditation.
The Ministry of Ayush is also working to strengthen the evidence base through its research institutions and the Ayush Research Portal, which brings together research relating to clinical studies, preclinical studies, drugs, and fundamental research across AYUSH systems.
More reliable evidence and measurable treatment outcomes can help healthcare institutions, insurers, and policymakers evaluate services more consistently.
Economic growth and increased insurance availability, however, do not establish the clinical effectiveness of every AYUSH treatment. Individual therapies and procedures must be assessed in light of the available scientific and clinical evidence.
Registered Practitioner Numbers Have Grown More Slowly
The growth in registered AYUSH practitioners has not been proportional to the expansion of educational infrastructure, according to figures cited in the Business Standard report.
Government data cited by the publication indicated that the number of registered AYUSH practitioners increased from 736,258 in 2014 to 747,499 in 2025.
These figures need to be interpreted in context. Much of the expansion in educational capacity has occurred relatively recently, while courses such as the Bachelor of Ayurvedic Medicine and Surgery (BAMS) take five-and-a-half years to complete, including the internship.
Students entering newly established or expanded programmes may therefore take several years to qualify and register. Registration procedures in individual states may also affect the timing of additions to the registered workforce.
Economic Potential of AYUSH Services
The economic contribution of AYUSH healthcare services is another area of interest.
A report by Primus Partners, cited by Business Standard, estimated the AYUSH healthcare services economy at approximately US$26 billion in 2024, compared with US$21.5 billion in 2022.
The estimate covers areas such as clinical and hospital care, wellness, digital health, and community health programmes.
The report projects that the sector could reach US$99 billion by 2030 under a high-growth scenario. Achieving this projection would require annual growth of approximately 25%, supported by investment in healthcare infrastructure, financing, and integration with the wider healthcare system.
This is a projection, not a guaranteed future outcome.
Quality and Evidence Are Key to Global Expansion
The sector’s growth opportunities extend beyond India’s domestic healthcare market.
Exports of AYUSH and herbal products increased by 6.11% to US$688.89 million in 2024–25, from US$649.2 million in the previous financial year, according to figures reported by Business Standard.
The Ministry of Commerce and Industry’s annual report also recorded AYUSH and herbal exports of US$649.20 million in 2023–24.
Further international expansion will depend on factors including quality assurance, clinical evidence, standardisation, and compliance with the requirements of overseas markets.
The Ministry of Ayush has also strengthened international cooperation through country-to-country agreements, academic chair arrangements, and research and academic partnerships with international institutions.
What This Means for the AYUSH Sector
The sector is entering a phase in which growth increasingly depends on organised healthcare delivery alongside education and primary-care services.
This transition could create opportunities for AYUSH practitioners and healthcare institutions in hospital-based care, insurance-linked services, wellness, research, and digital health.
For patients, broader insurance coverage could improve affordability where specific AYUSH services are included in their policies.
The challenge for policymakers and healthcare providers will be to ensure that expansion is supported by appropriate clinical evidence, treatment standards, quality systems, and clearly defined referral pathways.
Evidence, quality assurance, and standardisation will also remain important for building confidence in the sector’s international ambitions.
AYUSH Insurance: What Patients Should Know
Patients considering AYUSH treatment under health insurance should check the following before receiving care:
- Whether their specific health insurance policy covers AYUSH treatment
- Which AYUSH systems and procedures are included
- Whether the hospital or provider is part of the insurer’s network
- Whether cashless treatment is available
- Any applicable limits, exclusions, waiting periods, or sub-limits
- The relevant sum insured and reimbursement conditions
- Whether prior authorisation is required for hospital treatment or admission
Coverage is subject to the policy terms and applicable regulatory requirements. Patients should confirm the precise coverage with their insurer before proceeding with treatment.
The Road Ahead
The next phase of AYUSH development could involve greater integration across primary care, hospitals, insurance, and government healthcare programmes.
Expansion alone, however, will not determine the sector’s long-term success. Stronger evidence, standardised treatment protocols, measurable outcomes, trained professionals, quality accreditation, and sustainable financing will be important for building a more organised healthcare system.
Growing interest in hospital-based care and insurance creates opportunities for the sector, while also increasing the importance of demonstrating quality, safety, and effectiveness.
Conclusion
India’s AYUSH sector is moving towards a broader healthcare services model, with insurance coverage, hospital investment, and potential expansion of government health programmes contributing to this transition.
The opportunity will depend on the sector’s ability to combine traditional medicine systems with evidence-based practice, quality standards, organised healthcare infrastructure, and appropriate financing. Strengthening clinical evidence and public confidence will be central to its next phase of development, both in India and internationally.
