India's Ayurveda product market to reach Rs 1.2 lakh crore by FY28: Study

New Delhi: India's Ayurveda product market is projected to reach USD 16.27 billion or Rs 1.2 lakh crore by FY28 from USD 7 billion or Rs 57,450 crore at present, according to a study.

The Ayurveda product market has experienced significant growth due to rising demand for natural and herbal remedies in local and international markets, increase in ayurvedic medical practitioners, government initiatives, and emergence of new entrepreneurs, Ayurveda tech startup NirogStreet said.

Citing a survey, NirogStreet said the Ayurveda product market in India is expected to grow significantly, with projections indicating a substantial increase in market value to Rs 1,20,660 crore (USD 16.27 billion) by FY28.

According to NirogStreet survey, the overall market for Ayurveda products and services is expected to grow at a CAGR of 15 per cent from FY23 to FY28, with the product and service sectors growing at a CAGR of 16 per cent and 12.4 per cent, respectively.

The survey also estimated the value of the country's Ayurvedic manufacturing at Rs 89,750 crore (USD 11 bn) in FY22. The figure includes the value of exports of around Rs 40,900 crore (USD 5 bn). The import is estimated at Rs 8,600 crore (USD 1 bn).

Around 7,500 manufacturers across 10 states -- Uttar Pradesh, Bihar, Madhya Pradesh, Delhi, Haryana, Rajasthan, Punjab, Maharashtra, Jammu and Kashmir and Kerala -- participated in the NirogStreet survey.

At a recent CII AYUSH Conclave, Padmashri Vaidya Rajesh Kotecha, Secretary, Ministry of AYUSH, highlighted the need to position AYUSH products in global marketplaces and bring more innovation into the ecosystem.

The secretary said that the AYUSH sector has surged to USD 24 billion in 10 years.

This exponential growth trajectory indicates the immense potential of the Ayurveda product market in India to become a significant contributor to the country's economy, NirogStreet said in a statement.