India’s exceptional plant-oriented translational sector – An ayush exports case report

Tripta Dixit

doi:10.4103/jras.jras_103_23

MANN KI BAAT - SPL. ISSUE - SECTION 6: INDUSTRY & ACADEMIA COLLABORATION

Year : 2023 | Volume : 7 | Issue : 5 | Page : 69-72

India’s exceptional plant-oriented translational sector – An ayush exports case report

Tripta Dixit
Ayush Export Promotion Council, Ministry of Ayush Ayush Bhawan, B Block, GPO Complex, INA, New Delhi, India

Date of Submission	16-Apr-2023
Date of Acceptance	18-Apr-2023
Date of Web Publication	28-Apr-2023

Correspondence Address:
Dr. Tripta Dixit
Ayush Export Promotion Council, Ministry of Ayush Ayush Bhawan, B Block, GPO Complex, INA, New Delhi – 110023
India

Source of Support: None, Conflict of Interest: None

DOI: 10.4103/jras.jras_103_23

How to cite this article:
Dixit T. India’s exceptional plant-oriented translational sector – An ayush exports case report. J Res Ayurvedic Sci 2023;7, Suppl S1:69-72

How to cite this URL:
Dixit T. India’s exceptional plant-oriented translational sector – An ayush exports case report. J Res Ayurvedic Sci [serial online] 2023 [cited 2023 Jun 8];7, Suppl S1:69-72. Available from: http://www.jrasccras.com/text.asp?2023/7/5/69/374499

My dear countrymen, the fight of our countrymen against Corona is still on. The whole world is still struggling today. The increasing interest of people in Holistic Healthcare has helped everyone a lot in this. We all know how useful Indian traditional methods are in this. In the fight against Corona, AYUSH has played an important role, at the global level. There is a growing interest in Ayurveda and Indian medicine around the world. This is one of the major reasons why Ayush Exports have witnessed a record growth and it is also a matter of joy that many new start-ups are also emerging in this sector.

Hon’ble Prime Minister of India, Shri Narendra Modi

Mann Ki Baat- 31 July, 2022

Hon’ble Prime Minister, in his Maan ki Baat, has often acknowledged the Ayush sector’s healing power, rooted in various healthcare sciences as advocated with years of practice and adoption by many cultures. Post-Covid, a global resurgence has been witnessed, possibly due to increased awareness and preference for a healthier lifestyle. Covid-19 spiked the global demand for herbal goods and demanded attention to evidence-based studies for the available herbal goods. This recorded a significant Compound Annual Growth Rate (CAGR) of 6.14 percent growth in the export of Medicinal and Aromatic Plants for 2017-21 and accounts for 17.25 percent of the total exported value of Medicinal and Aromatic Plants in 2021. AYUSHEXCIL shares its first-hand experience with various stakeholders, in this case, report on how this sector, particularly the medicinal herbs, has revolutionized in terms of utility, technological advancement, and exports in post-Covid scenario.

Introduction

The strength of Ayush sciences is inherent in India’s rich flora. Post-Covid-19 pandemic, Ayush systems have witnessed resurgence in India and across the globe, which have been used as preventive and curative healthcare methods of treatment. The International Yoga Day and International Year of Millets declaration by the United Nations has opened many new avenues for India’s exports. The Prime Minister has given impetus to export expansions by launching Ayush Export Promotion Council. The constant efforts made through Mann ki Baat have widely sensitized the national and global population to use herbal products along with a healthy lifestyle & diet, which has also led to a larger market for such goods. The Ayush Export Promotion Council conducted semi-structured interviews with Ayush companies to get better insights into the changing dynamics driving the Ayush sector, the outcomes of which are presented in this paper. The domain-wise findings are as follows:

Market and Regions

The global herbal market comprises Medicinal and Aromatic Plants (MAPs), herbal medicines, herbal extracts, plant derivatives, and supplements or nutraceuticals. According to various market research studies, the global market of herbal medicines is projected to grow from approximately US$ 166 Billion in 2022 to US$ 347.50 Billion by 2029, at an approximate Compound Annual Growth Rate (CAGR) of 11.2 per cent^[1],[2]. Indian Ayush companies have a presence in below regions-

Latin America and the Caribbean (LAC) Region WANA/ MENA Region: Bahrain, Kuwait, Oman, Qatar, Iraq, UAE, Saudi Arabia, Egypt, Sudan, Algeria, Morocco, Tunisia, Syria, Jordan, Israel, Lebanon, Yemen, Libya, and South Sudan

Middle East/North Africa (MENA)

ASEAN Region: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore

Commonwealth of Independent States (CIS): Russian Federation, Ukraine, Moldova, Georgia, Armenia, Azerbaijan, Belarus, Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, and Tajikistan

United States of America (USA)

European Union (EU)

Harmonized System of Codes

Herbal medicines, extracts, Medicinal Aromatic Plants, and nutraceuticals collectively form herbal goods. Proper classification of herbal goods in appropriate Harmonized System (HS) codes plays a significant role in recoding the real exports. A list of frequently used HSN codes for the exports of herbal goods has been depicted below in [Figure 1].

Figure 1: Frequently used HSN Codes for Herbal goods by Ayush Industry

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Challenges in various regions

Each region mentioned earlier has its own defined set of challenges, from recognizing traditional medicines to qualifying them as safe to enter the country and their sales and distribution. Some of the significant challenges are as follows-

Lack of information on the list of plants permitted for imports of individual countries or country groups/regions^[3].

Lack of recognition of Traditional Medicines as a health service, drug, or medicine and thus no health claims for labeling dietary supplements^{[3],[ 4]}.

Lack of recognition of Ayush Medical Practitioners leading to fewer sales of the proprietary goods^[3].

Export tariff barriers are high in many countries, such as Thailand, Bangladesh, Nepal, Vietnam, and Pakistan^[3].

The non-tariff barriers also add indirect expenses as they slow the certification, scaling, and customs inspection processes^[3].

Non-availability of Quality, safety, and efficacy standards for herbal ingredients per the importing country, such as the United States Pharmacopeia – National Formulary (USP-NF)^[3],[5].

Lack of Supply chain and distribution channel management leads to higher engagement of middlemen.

New approach adopted by Government and Industry

1. Initiatives taken by the Ministry of Ayush, Government of India

The Government of India has played a crucial role in timely strategizing the proper positioning through the below-mentioned initiatives to strengthen the sector and other initiatives as follows:

Impetus to the export expansions by launching Ayush Export Promotion Council.

Working groups have been constituted in order to facilitate export in Ayush systems.

Steps have also been taken to promote millets, including at various government events, by incorporating them as a significant component of meals served at official meetings. Also, many start-ups have introduced innovative recipes based on millet.

2. Initiatives taken by the Industry
- • Many start-ups have ventured into Ayush systems and working on various aspects such as the preparation of medicines, extraction process, development of new formulations, packaging, and other manufacturing requirements of the sector.
- • Internships in exports have been encouraged to invite a new talent pool.
- • Active participation has been encouraged in business delegations to foreign countries.
- • Prioritizing evidence-based research or entering clinical trials for many of its proprietary products or classical techniques.
- • Filing patent applications and other forms of Intellectual Property.

Discussion

The export of herbal goods is increasing at a faster pace than imports, contributing to the achievement of a trade surplus in the sector. To ensure India’s penetration in value chains in this sector, more focus to be given to the exports of value-added products, such as extracts and prescription drugs, instead of primary raw materials.

1. Major Export destinations

The most favored export destinations for herbal goods are the EU, USA, and UAE due to negligible tariff barriers and ease of market access to Ayush. The export figures recorded in 2021 are US$ 235.47 Million, US$ 441.08 Million, and US$ 69.63 Million for the EU, USA, and UAE, respectively. Other high-export regions are Russia, Nepal, and South Africa. Together they contributed to 59.12 percent of all Ayush exports in 2021, wherein the USA accounts for 34.95 percent and EU for 18.66 percent and UAE for 5.52 per cent^{[3],[ 6]}, depicted in [Table 1] and [Figure 2]. Among these countries, UAE supports exports of herbal goods as medicines per their medical indications. In contrast, the EU and USA accept most herbal goods as dietary supplements/nutraceuticals due to stringent regulatory requirements required listed for the medicinal goods in these regions.

Table 1: Herbal goods market projection of highest export regions viz. EU, USA, and UAE3

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Figure 2: Herbal goods exports in 2021 include MAPs, Extracts, Medicants, and Medicaments^[3]

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1. CIS Regions and Potential Markets

CIS regions, ASEAN regions, and Latin America have been categorized as potential markets for expansion by many industry players. The AYUSHEXCIL is already working on the challenges mentioned above to ease the business activities in those regions by organizing interactive sessions with regulators, organizing reverse buyer-seller meet, taking delegations to those countries, and establishing dialogues with the Indian missions abroad for seeking government support on various challenges.

Financial support and sponsorship

Nil.

Conflicts of interest

There are no conflicts of interest.

References

1.	Fortune Business Insights. 2022. Herbal Medicine Market Size, Share and COVID-19 Impact Analysis, Online at https://www.fortunebusinessinsights. com/herbal-medicine-market-106320. [Last accessed on 18 Apr 2023].
2.	Zion Market Research. 2022. Herbal Medicine Market - Global Industry Analysis. Online at https://www.zionmarketresearch.com/report/global-herbal medicine-market. [Last accessed on 18 Apr 2023].
3.	RIS. 2023. AYUSH Exports: Regulatory Opportunities and Challenges in Key Markets. Available from: https://fitm.ris.org.in/sites/fitm.ris.org.in/files/Publication/AYUSH-Export-Report.pdf. [Last accessed on 18 Apr 2023].
4.	Rosenberg, M 2022, Ayurveda in Europe–Status and perspectives. International Journal of Ayurveda Research. 2022 Jan 1 3(1): 39- 43.
5.	Starr, RR Too little, too late: ineffective regulation of dietary supplements in the United States. American journal of public health. 2015 Mar;105(3):478- 85.
6.	RIS. 2021. Ayush Sector in India: Prospects and Challenges. RIS, New Delhi. Available from: https://www.ris.org.in/en/node/330. [Last accessed on 18 Apr 2023].