PRESTIGE INSTITUTE OF MANAGEMENT AND

RESEARCH
(Affiliated to D.A.V.V., INDORE)

MAJOR RESEARCH PROJECT

ON

EXPORT POTENTIAL OF AYUSH

PRODUCTS FROM INDIA

A Research Dissertation Submitted For Partial Fulfillment of

Master of Foreign Trade
 EXECUTIVE SUMMARY

INTRODUCTION

In the present era of globalization and development of a world market for traditional
and herbal medicine, research & development is needed to promote the
production and export of quality products in the form of drugs, food
supplements, toiletries and cosmetics. There is an intense competition from
other countries in the trade of herbal products. India’s share in the world market
is negligible. The revised extra-mural research project has, therefore, been
designed to encourage R&D in priority areas so that the research findings lead to
validation of claims and acceptability of the AYUSH approach and drugs.

Department of Indian Systems of Medicine and Homeopathy (ISH&H) was set up in

1995 to ensure the optimal development and propagation of AYUSH systems of
health care. It was renamed as the Department of Ayurveda, Yoga &
Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) in November, 2003.
The Department continued to make steady progress during the year 2005-2006.
Emphasis was laid on implementing the schemes which address the thrust areas
identified by the Department like up gradation of educational standards, quality
control and standardizations of drugs, improving the availability of raw material,
research and development and awareness generation about the efficacy of the
systems domestically and internationally.

RESULT
The data available for the thirteen years of exports of AYUSH products (Ayurveda,
Yoga, Naturopathy, Unani, Siddha, Homoeopathy) shows constant increase in
the export. The export have shown a very good growth in the year (2006-07;
2007-08) the growth of exports have been great and the requirement is also
fulfilled by Indian exporters because of the proper production in those years and
the proper climatic conditions were also there.. However, apart from that the
growth of exports has been registered from the data available of past thirteen
years. There is an immense potential in the coming years in this sector because of
increasing demand in these markets. Talking about the trend analysis of the data
is not having much difference in them but yet increasing so we have an on the
line graph because there is not much difference in the data registered. The new
reformed policies introduced by the government in the latest foreign trade policy
i.e. 2009-2014 have also announced various schemes and incentives for the
exporters to promote exports.

CONCLUSION

After analyzing the past 13 years data using trend analysis and predicting future data,
a growth can be seen in the exports of AYUSH products from India. If exporters
follow, the norms and standards placed by World Trade Organization, then for sure
there will be a high growth and India will be able to export more AYUSH products to
the these countries. If there will be total government support through good reforms
and policies then there will be good amount of growth in the exports of AYUSH
products and this sector will become one of the decent foreign exchange earners in
the upcoming years. Understanding of global market and emerging trends is the basic
prerequisite to stay and grow in international markets
 CONTENTS

Page No.
CHAPTER 1: INTRODUCTION 1-27
a) Conceptual Framework 2-26
b) Rationale of the Study 27
c) Objective of the Study 27

CHAPTER 2: RESEARCH METHODOLOGY 28-29

a) The Study
b) The Sample
c) The Tools
 For Data Collection
 For Data Analysis

CHAPTER 3: RESULTS 30-32

CHAPTER 4: DISCUSSION 33-34

CHAPTER 5: SUMMARY, CONCLUSION & SUGGESTIONS 35-37

CHAPTER 6: IMPLICATIONS OF THE STUDY 38

REFERENCE 39
INTRODUCTION

1
In the present era of globalization and development of a world market for traditional
and herbal medicine, research & development is needed to promote the
production and export of quality products in the form of drugs, food
supplements, toiletries and cosmetics. There is an intense competition from
other countries in the trade of herbal products. India’s share in the world market
is negligible. The revised extra-mural research project has, therefore, been
designed to encourage R&D in priority areas so that the research findings lead to
validation of claims and acceptability of the AYUSH approach and drugs.

A separate Department of Indian Systems of Medicine and Homeopathy (ISM&H)

was set up in 1995 to ensure the optimal development and propagation of
AYUSH systems of health care. The Department of ISM&H was re-named as the
Department ofAYUSH (an acronym for - Ayurveda, Yoga, Naturopathy, Unani,
Siddha, Homoeopathy) in November 2003.The Department of AYUSH under
Ministry of Health and Family Welfare, promotes and propagates Indian systems
of Medicine and Homoeopathy, and is committed to infuse the wisdom of
traditional medicine with the methodologies of modern science, scientifically
validating the systems and presenting them in the scientific idiom. The
Department has, over the years, developed a broad institutional framework to
carry out its activities. The National Medicinal Plants Board (NMPB) functions
under the Department to coordinate activities relating to conservation,
cultivation, marketing, export and policy making for the development of the
medicinal plants sector.

2
There are two statutory regulatory bodies, namely Central Council of Indian
Medicine (CCIM) and Central Council of Homoeopathy (CCH) for laying down
minimum standards of education, recommending recognition of medical
qualifications, registering the practitioners and laying down of ethical codes.
Four research councils, for Ayurveda and Siddha (CCRAS), Unani (CCRUM),
Yoga and Naturopathy(CCRYN) and Homoeopathy (CCRH) are responsible for
the officially. Sponsored research activities. So far, eight National Institutes are
existing at national level for teaching, research and clinical practices. For
standardisation and testing of drugs, various agencies have been put in plan by
the Government of India. Four different Pharmacopoeia Committees are working
for preparing official formularies /pharmacopoeias to evolve uniform standards
in preparation of drugs of Ayurveda, Siddha, Unani and Homoeopathy and to
prescribe working standards for single drugs as well as compound formulations.
A Drug Quality Control Cell is working in the Department to deal with the
matters pertaining to licensing, regulation and control of drugs and the spurious
manufacture of Ayurveda, Unani and Siddha Drugs and other matters.

Two apex laboratories, namely, Pharmaco-poeial laboratory for Indian Medicine

(PLIM) and Homoeopathic Pharmacopoeial Laboratory (HPL) are functioning as
Standard Setting-Cum-Drug-Testing Laboratories for Indian Medicines and
Homoeopathy respectively. Indian Medicines Pharmaceutical Corporation Ltd.
(IMPCL), a Public Sector Undertaking, manufactures classical Ayurveda and
Unani drugs. The Department also manages the CGHS Ayurveda Hospital at
Lodhi Road, New Delhi. Since the creation of a separate Department, there has
been a substantial increase in the infrastructural facilities under AYUSH systems
in the country. Presently, there are 3360 hospitals (with about 68000 beds),21769
dispensaries, 7.26 lakhs doctors, 485 educational institutions (with admission
capacity of about 27000 UG students and 2252 PG students) and 9197 drug-
manufacturing units under AYUSH systems. Under NRHM, AYUSH facilities
have been co-located with 208 District hospitals, 910 CHCs and 3883 PHCs

CONCEPTUAL FRAMEWORK

3
Department of Indian Systems of Medicine and Homeopathy (ISH&H) was set up in
1995 to ensure the optimal development and propagation of AYUSH systems of
health care. It was renamed as the Department of Ayurveda, Yoga &
Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) in November, 2003.
The Department continued to make steady progress during the year 2005-2006.
Emphasis was laid on implementing the schemes which address the thrust areas
identified by the Department like up gradation of educational standards, quality
control and standardizations of drugs, improving the availability of raw material,
research and development and awareness generation about the efficacy of the
systems domestically and internationally.

The involvement of AYUSH in the national health care delivery systems including
National Rural Health Mission (NRHM) was given a thrust in keeping with the
strategies laid out in National Policy on ISM&H-2002.Standardisation of drugs
and quality control continued to receive focused attention. Department of
AYUSH issued three Orders to ensure Quality Control of ASU Drugs.
Displaying on the label of the container or package of an Ayurveda, Siddha and
Unani drug, the true list of all ingredients (official and botanical names) used in
the manufacture of the preparation together with the quantity of each of the
ingredients incorporated therein has been made mandatory. All the State ASU
Drug Licensing Authority have been directed to take action against the defaulting
ASU Drug manufacturers for failure to comply with the Good Manufacturing
Practices notified under Schedule ‘T’ of the Drugs and Cosmetics Rules, 1945.
Testing for heavy metals, viz., Arsenic, Lead, Mercury and Cadmium in all
purely herbal Ayurveda, Siddha and Unani drugs has been made mandatory for
export purposes w.e.f. 1st January, 2006.

4
The Department has been taking serious initiatives for integrating AYUSH with the
modern medicine. Mainstreaming of AYUSH is envisaged in the National Rural
Health Mission. The Department of AYUSH is implementing a Centrally
Sponsored Scheme for promoting Indian Systems of Medicine & Homoeopathy.

The scheme covers (a) Establishment of specialized therapy centre with

hospitalization facility for Panchkarma/Kshar Sutra therapy of Ayurveda or
Regimental therapy of Unani Medicine of Siddha or Yoga & Naturopathy or
Homoeopathy; (b) Establishment of speciality clinic of ISM&H i.e. system
specific outdoor treatment centre; (c) Setting up of ISM&H wing in District
Allopathic hospitals – outdoor as well as indoor facility of one or two systems of
ISM&H; and (d) Supply of essential AYUSH drugs to rural & backward area
AYUSH dispensaries.The Department of Ayurveda, Yoga & Naturopathy,
Unani, Siddha and Homoeopathy(AYUSH) is headed by a Secretary to the
Government of India. The Secretary is assisted by a Joint Secretary and four
Directors/Deputy Secretaries and a number of Advisers (at present three) and Dy.
Advisors (at present six) of Ayurveda, Siddha, Unani & Homoeopathy. The total
sanctioned staff strength of the Department in Group A, B, C, & D is 268, which
include Secretariat and Technical posts. Concerted efforts were made to fill up
vacant posts. A post of Joint Secretary in the scale of Rs.18,400-22,400 in lieu of
the post of Director in the scale of Rs.22,400-24,500 + NPA has been created in
the Department of AYUSH with the approval of Union Cabinet.

5
The Department has, over the years, developed a broad institutional framework to
carry out the activities in the field of AYUSH. The institutional framework
consists of two statutory regulatory bodies, namely, Central Council of Indian
Medicine (CCIM) and Central Council of Homoeopathy (CCH), for laying down
minimum standards of education, recommending recognition of medical
qualifications, registering the practitioners and ethical matters; apex research
bodies known as the Central Councils of Research for Ayurveda and Siddha,
Unani Medicine, Homoeopathy, Yoga and Naturopathy; apex educational
institutes such as National Institutes of Ayurveda, Homoeopathy, Naturopathy,
Unani System of Medicine, Yoga and Rashtriya Ayurveda Vidyapeeth;
Pharmacopoeial Laboratory for Indian Medicine & Homoeopathy
Pharmacopoeial Laboratory; Pharmacopoeial Committees for the different
systems of medicine and Ayurveda Hospital, Lodhi Road, New Delhi which has
been transferred from Department of Health to Department of AYUSH for its
management.

A Public Sector Undertaking, viz., Indian Medicines Pharmaceutical Corporation Ltd.

(IMPCL), has been functioning for manufacturing of classical drugs of Ayurveda
and Unani systems of medicine. The modernization and expansion of its
activities have been approved and infusion of equity has been permitted.A
National Medicinal Plants Board is functioning under the Department to
coordinate activities relating to conservation, cultivation, marketing, export and
drawing policies and strategies for the development of medicinal plants sector.
The Medicinal Plants Cell (MPC) working under the Department for
implementing the Central Scheme for development and cultivation of Medicinal
Plants and developing agro-techniques has now been transferred to the National
Medicinal Plants Board.A Drug Control Cell (AYUSH) is working in the
Department to deal with the matters pertaining to licensing and regulation of
drugs and control of misbranded/adulterated and spurious manufacturing of
Ayurvedic, Unani and Siddha Drugs and other matters. The DC Cell also deals
with developing Traditional Knowledge Digital Library (TKDL) and matters
relating to Intellectual Property Rights (IPR) as also coordination with
Government of India Ministries/Departments concerned with IPR and patent
claims.

6
Besides, Information, Education & Communication (IEC) Cell and a Facilitation
Center have also been functioning in the Department.The Department realizes the
need to develop itself into a dynamic and flexible organization in a rapidly
changing and complex environment. The Department also realizes the need for
appropriate human resource policy to maintain the motivation and cooperation of
its employees to increase their Adopt DOTS if test confirms T.B. efficiency. In
order to streamline the working of the autonomous bodies, amendment in the
composition and constitution of Governing Bodies and other Committees has
been completed. The Scientific Advisory Committees (SACs) continue to ensure
that proper technical & scientific inputs are available for undertaking promising,
contemporary areas of research keeping in view the strengths of these systems.

AYUSH SYSTEMS

7
1) Ayurveda
Ayurveda is perhaps as old as our civilization. This "science of Life"
(Ayu +Veda) takes an integrated view of the physical, mental, spiritual
and social aspects of human beings, each impinging on the others.
Ayurveda was referred to in the Vedas (Rigveda and Atharvaveda) and
around 1000B.C. the knowledge of Ayurveda was comprehensively
documented in Charak Samhita and Sushrutha Samhita. According to
Ayurveda health is considered as a pre-requisite forachieving the goals
of life - Dharmas, Arth,Kama and Moksha (Salvation) and all objects and
living bodies are composed of five basic elements, the Pancha
Mahabhootas, namely: Prithvi (earth), Jal (water), Agni (fire), Vayu (air)
and Akash (ether).

The philosophy of Ayurveda is based on the fundamental harmony

between the universe and man, a healthy balance between macrocosm
and the microcosm. Ayurveda believes in the theory of Tridosha: Vata
(ether + air), Pitta (fire) and Kapha (earth + water). These three 'Doshas'
are physiological entities in living beings. The mental characters of men
are described by Satva, Rajas and Tamas. Ayurveda aims to keep these
structural and functional entities in a state of equilibrium which signifies
good health (Swastha). Any imbalance due to internal or external factors
causes disease and the treatment consists of restoring the equilibrium
through vari-ous techniques, procedures, regimen, diet and medicine.

The treatment in the Ayurveda system is holistic and individualized

having two components; preventive and curative. The preventive aspect
of Ayurveda is called Svasth-Vritt and includes personal hygiene, regular
daily and seasonal regimen, appropriate social behaviour and Rasayana
Sevana, i.e., use of rejuvenative materials/food and rasayana drugs.The
curative treatment consists of three major categories of procedures,
Aushadhi (drugs), Anna(diet) and Vihara (exercises and general mode of
life). Ayurveda largely uses plants as raw materials for the manufacture
of drugs, though materials of animal, marine origin, metals and minerals
are also used. Ayurvedic medicines are safe and have little or no known

8
adverse side-effects. Ayurveda developed into eight distinct specialities,
i.e., Kayachikitsa (Internal Medicine), Kaumar Bhritya (Pediatrics),
Graha Chikitsa (Psychiatry), Shalakya (Eye and ENT), Shalyatantra
(Surgery), Visha Tantra (Toxicology), Rasayana (Geriatrics) and
Vajkarna (Science of virility).

During the last 50 years of development in the teaching and training in

Ayurveda, twenty two specialties have now been developed. These are
Ayurveda Sidhanta (Fundamental Principles of Ayurveda), Ayurveda
Samhita, Rachna Sharira (Anatomy), Kriya Sharira (Physiology), Dravya
GunaVigyan (Materia Medica and Pharmacology), Ras-Shashtra
(Pharmaceuticals using minerals and metals), Bhaishajya Kalpana
(Pharmaceuticals), Kaumar Bhritya - Bala Roga (Pediatrics), Prasuti-
Tantra evum Stri Roga (Obstetrics and Gynaecology),Swasth-Vritta
(Social and Preventive Medicine),Kayachiktisa (Internal Medicine), Rog
Nidan avum Vikriti Vigyan (Pathology), Shalya Tantra (Samanya)
(Surgery), Salya Tantra-KsharKarma avum Anushastra Karma
(KsharsKarma and Para-surgical procedure), Shalakya Tantra-Netra
Roga, Shalakya Tantra - Shiro-Nasa-Karna Avum Kantha Roga (ENT),
Shalakya Tantra – Danta Avum Mukha Roga (Dentistry), Manovigyana
avum Manas Roga (Psychiatry), Panchakarma, Agad Tantra avum Vidhi
Vaidyaka (Toxicology and Jurispru-dence), Sangyaharana
(Anaesthesiology) and Chhaya avum Vikiran Vigyan (Radiology).

Ayurveda provides a host of treatments for complex diseases, and the

traditional and time-tested systems of Ay urveda for holistic healing are
available around the country. During recent years, Kshar Sutra and
Panchkarma have become popular among the public. Kshar Sutra is an
Ayurvedic para-surgical intervention using a medicated thread, which is
extremely effective in the treatment of if stula-in-ano and conditions
which demandgradual excision of overgrown soft tissues like polyps,
warts, non healing chronic ulcers and sinuses and papillae without the
need of hospitaliza-tion, antibiotics or anesthesia. Panchakarma is a
unique therapeutic procedure for the radical elimination of disease-

9
causing-factors and to maintain the equilibrium of doshas. The
Panchakarma therapy reduces the chances of recurrence of the disease
and promotes positive health by rejuvenating the vital body systems.

10
2) Unani:
The Unani System of Medicine, which originated in Greece and passed
through many countries before establishing itself in India
during the medieval period, is based on well-established knowledge and
practices relating to the promotion of positive health and prevention
of diseases. The Unani System has grown out of the fusion of the
traditional knowledge of ancient civilizations like Egypt, Arabia,
Iran,China, Syria and India. The system of medicine was documented in
Al-Qanoon, a medical Bible, by Sheikh Bu-Ali Sina (Avicena) (980-
1037 AD), and in Al-Havi by Razi (850-923 AD) and in many other
books written by the Unani physicians. The Unani system is based on the
Humoral theory i.e, the presence of blood, phlegm, yellow bile and black
bile in a person. The temperament of a person can accordingly be
sanguine, phlegmatic, choleric and melancholic depending on the
presence and combination of humors. According to Unani theory, the
humors and medicinal plants themselves are assigned temperaments.
Any change in quantity and quality of the humors, brings about a change
in the status of the health of the human body. A proper balance of
humors is required for the maintenance of health. Treatment in Unani
consists of three components, namely, preventive, promotive and
curative.

Unani system of Medicine has been found to be efficacious in conditions

like Rheumatic Arthritis, Jaundice, Filariasis,Eczema, Sinusitis and
Bronchial Asthma. For the prevention of disease and promotion of
health, the Unani System emphasizes six essentials (Asbab-e-Sitta
Zarooria):- (a) pure air (b) food and water (c) physical,
movement and rest (d) psychic movement and rest (e) sleep and
wakefulness and (f) retention of useful materials and evacuation of waste

materials from the body.

11
 There are four forms of treatment in Unani medicine-Pharmaco therapy,
Dietotherapy, Regimental Therapy and Surgery. Regimental therapy (Ilaj
BidTadbir) is a special technique/ physical method of treatment to
improve the constitution of body by removing waste materials and
improving the defense mechanism of the body and protect health. The
Unani system of medicine offers various methods of treatment which are
used for specific and complicated diseases. It emphasizes the use of
naturally occurring, mostly herbal, medicines and also uses some
medicines of animal, marine and mineral origin. During the last 50
years,seven Post graduate specialities have been developed (i)
Kulliyat(Fundamentals of Unani System of Medicine (ii) IlmulAdviya
(Pharmacology) (iii) Amraz-e-Niswan (Gynaecology) (iv) Amraz-e-Atfal
(Paediatrics) (v) Tahafuzzi-wa-Samaji-Tib (Social and Preventive
Medicine) (vi)Moalejat(Medicine) and (vii) Jarahiyat (Surgery).
3) Siddha:
The Siddha System is one of the oldest systems of medicine in India and
is practised in the Tamil speaking parts of India and abroad. The term
Siddha means 'achievements' and Siddhars were saintly persons who
achieved 'results' in medicine. Eighteen Siddhars were said to have
contributed towards the development of this medical system. Siddha
literature is in Tamil and it is largely therapeutic in nature.

The Siddha system of Medicine emphasizes that medical treatment is

oriented not merely to disease but has to take into account the patient, the
environment, age, sex, race, habits, mental frame, habitat, diet, appetite,
physical condition, physiological constitution, etc. This means the
treatment has to be individualistic and ensures a low probability of
incorrect diagnosis or treatment. The diagnosis of diseases in Siddha
involves identifying its causes through the examination of pulse, urine,
eyes, study of voice, colour of body, tongue and the status of the
digestive system.

12
The system has developed a rich and unique treasure house of drug
knowledge in which use of metals and minerals is liberally made. Siddha
medicines containing mercury, silver, arsenic, lead and sulphur have
been found to be effective in treating certain
infectious diseases including venereal diseases. The Siddha system is
effective in treating chronic cases of liver, skin diseases especially
"Psoriasis", rheumatic problems, anemia, prostate enlargement, bleeding
piles and peptic ulcer. During the last four decades, there has been
continuous development in Siddha medical education and this has led to
the establishment of the six specialities in post-graduate teaching and
training. These are Maruthuvam (General Medicine), Sirappu
Maruthuvam (SpecialMedicine), Kuzhanthai Maruthuvam (Paediatrics),
Gunapada(Pharmacology), Noi Nadal (Pathology) and Nanju Nool and
Maruthuva Neethinool (Toxicology).

13
4) Yoga:
Yoga is primarily a way of life, first propounded by Patanjali in systematic form.
It consists of eight components namely, restraint, observance of austerity,
physical postures, breathing exercise, restraining of sense organs, contemplation,
meditation and samadhi. These steps in the practice of Yoga have the potential to
improve social and personal behavior and to improve physical health by
encouraging better circulation of oxygenated blood in the body, restraining the
sense organs and thereby inducing tranquility and serenity of mind. The practice
of Yoga has also been found to be useful in the prevention of certain
psychosomatic disorders/diseases and improves individual resistance and ability
to endure stressful situations. Yoga is a promotive, preventive and curative
intervention. A number of postures are described in Yogic works to improve
health, to prevent diseases and to cure illness. The physical postures are required
to be chosen judiciously and have to be practised in the correct way so that the
benefits of prevention of disease, promotion of health and therapeutic use can be
derived from them.

Studies have revealed that Yogic practice improves intelligence and memory and
help in developing resistance to situations of
strain and stress and also help individuals to develop an integrated personality.
Meditation can stabilize emotional changes and prevent abnormal functions of
the vital organs of the body. Studies have shown that meditation not
only restrains the sense organs but also controls the nervous system. Yoga today
is no longer restricted to hermits, saints, sages and it has taken its place in
everyday life and has aroused a world-wide awakening and acceptance.

5) Naturopathy:

14
 Naturopathy is a drugless, non-invasive therapy involving the use of
natural materials in its treatment based on the theories of vitality,
toxiemia, self healing capacity of the body and the principles of healthy
living. Naturopathy is not only a system of treatment but also a way of
life. It is a system of medicine widely practised, globally accepted and
recognized by WHO. Naturopathy is a system of living in harmony with
constructive principles of Nature on the physical, mental, moral and
spiritual planes. It has great promotive, preventive, curative as well as
restorative potential. Naturopathy is a scientific system of healing,
stimulating the body's inherent power to regain health with the help of
five great elements of nature - Earth, Water, Air, Fire and Ether.

It is a call to "Return to Nature" and to resort to a simple way of living in

harmony with the self, society and environment, advocating 'Better
Health without Medicines'. It is very effective in chronic, allergic and
stress related disorders. The theory and practice of Naturo-pathy are
based on a holistic view-point. The advocates of Naturopathy pay
particular attention to eating and living habits, adoption of purificatory
measures, use of hydro-therapy, cold packs, mud packs, baths, massages,
fasting,etc.

6) Homoeopathy:
The Physicians from the time of Hippocrates (around 400 B.C.) have
observed that certain substances could produce symptoms of a disease in
healthy people similar to those of people suffering from the disease. Dr.
Christian Friedrich Samuel Hahnemann, a German physician,
scientifically examined this phenomenon and codified the fundamental
principles of Homoeopathy. Homoeopathy was brought to India around
1810 A.D. by European missionaries and received official recognition by
a resolution passed by the Constituent Assembly in 1948 and then by the
Parliament.

15
The first principle of Homoeopathy 'Similia Similibus Curentur', says
that a medicine which could induce a set of symptoms in healthy human
beings would be capable of curing a similar set of symptoms in human
beings actually suffering from the disease. The second principle of
'Single Medicine' says that one medicine should be administered at a
time to a particular patient during the treatment. The third principle of
'Minimum Dose' states that the bare minimum dose of a drug which
would induce a curative action without any adverse effect should be
administered. Homoeopathy is based on the assumption that the
causation of a disease mainly depends upon the susceptibility or
proneness of an individual to the incidence of the particular disease in
addition to the action of external agents like bacteria, viruses, etc.

Homoeopathy is a method of treatingdiseases by administering drugs

which have been experimentally proved to possess the power to produce
similar symptoms on healthy human beings. Treatment in Homoeopathy,

which is holistic in nature, focuses on an individual's response to a

specific environment. Homoeopathic medicines are prepared mainly
from natural substances such as plant products, minerals and animal
sources. Homoeopathic medicines do not have any toxic, poisonous or
side effects. Homoeopathic treatment is economical as well and has a
very broad public acceptance.

16
 Homoeopathy has its own areas of strength in therapeutics and it is
particularly useful in treatment for allergies, autoimmune disorders and
viral infections. Many surgical, gynaecological and obstetrical and
paediatric conditions and ailments affecting the eyes, nose, ear, teeth,
skin, sexual organs, etc. are amenable to homoeopathic treatment.
Behavioral disorders, neurological problems and metabolic diseases can
also be successfully treated by Homoeopathy. Homoeopathy can also be
useful for de-addiction from drugs, tobacco and alcohol. Apart from the
curative aspects, Homoeopathic medicines are also used in preventive
and promotive health care. In recent times, there is an emergence of
interest in the use of Homoeopathic medicines in veterinary care,
agriculture, dentistry, etc. Homoeopathic medical education has
developed in seven specialties in post-graduate teaching, which are
Materia Medica, Organon of Medicine, Repertory, Practice of Medicine,
Paediatrics, Pharmacy and Psychiatry.

THE AYURVEDIC MEDICINE INDUSTRY IN INDIA

Seven thousands company in India produce Ayurvdic medicines, but most of them
are quite small, including numerous neighbourhood pharmacies that compound
ingredients to make their own remedies. It is estimated that the total value of
products from the entire Ayurvedic production in India is on the order of one
billion dollars (U.S).Less than a dozen major companies have dominated the
industry for decades, joined recently by a few others that have followed their
lead, so that there are today 30 companies doing a million dollar or more per year
in business to meet the growing demand of Ayurvedic medicine. the products of
these companies are included within the broad category of “fast moving
consumer goods” (FMCG; which mainly involves
foods,bevereges,toiletries,cigarettes,etc.).Most of the larger ayurvedic medicine
suppliers provide materials other than Ayurvedic internal medicines, particularly
in the areas of food and toiletries (soap,toothpaste,shampoo,etc.),where there
may be some overlap with Ayurveda, such as having traditional herbal
ingredients in the composition of toiletries.

17
NATURE OF THE AYURVEDIC INDUSTRY

Ayurvedic drug manufacturing companies, whether in the organized or unorganized

sector, are mostly family owned business. The origin of these companies can be
traced back to a vaidya who used to prepare some formulations for dispensing.
The gradua acceptance of the medicines over time led to the growth of such
units. Third generation owner-managers are now running many such companies.
The ownership pattern has helped in transfer of knowledge from one generation
to another, thereby enriching the knowledge base of families. This is particularly
so in the matter of standardization of raw material as well as medicines. There
are around six thousand licensed ad perhaps a similar number of unlicensed
manufacturing units.

COMPOSITION OF THE INDIAN AYURVEDA INDUSTRY

Ayurveda system is predominant amongst India’s health care systems and has a 70%
share formal medicine it is estimated that the total annual turnover of the industry
is around Rs.40.4 billion, although the figures are uncertain due to the large
number of micro units market. Ayurvedic manufacturing units can be broadly
classified into two groups:
Organized Sector: Comprising well-established manufacturers who operate in both
domestic and international markets. These could be large or small units. Often a
small manufacturer can be considerably strong in a niche market.
Unorganized sector: Comprising mainly practicing ayurvedic doctors (vaidya) and
micro-units manufacturing only a few products and operating at local levels.
Why 6000 units in India:-

Comparatively low infrastructure costs.

Acess to raw material.
Simple manufacturing process.
Lack of standardization of quality and efficiency of medicines.

Organized Player in the Industry

Himalya Drug Company

18
Dabur
Baidyanath
Morepen labs
Hindustan lever Ltd.
Zandu

ABOUT DEMAND OF INDIAN HERBAL PRODUCTS

Russia, U.S.A., Germany, U.K., France, Switzerland and Japan are major importers
of Indian ayurvedic products. The major exports from India are in crude forms:
herbal medicine that is in the form of roots, leaves, herbs powder can be sold in
processed form only if the formulation is registered in the county of import. This
is a lengthy and costly process, hence most of the ayurvedic drugs are either sold
as para medicine or food supplement.

During the last decade, exports reached a value of Rs.4.46 billion recent report by the
planning Commission estimates massive potential increases in the export
volume, to Rs.30 billion by 2005.

19
The global demand scenario provides a very considerable potential market for
ayurvedic products.however, despite estimate of rapidly increasing demand.
India’s share of the world herbal market is quite insignificant-the value of herbal
exports from China and Thailand, for example. are much higher (e.g. China’s
exports are around Rs.220 billion compared to Rs.4.46 billion for India).

DISTRIBUTION

Kind of a channel also depends upon the kind of the market size ad its potential. The
distribution channel of these companies is through there in the developed
companies as the market is very competitive due to the presence of the allopathic
drugs. Companies like Himalaya health care have there own stores in Germany.
Dabur distributes through their own distributors.sma layers like Shraddha exports
are more through E-mail and visits by the company export employee.

STATUS OF AYURVEDA IN INDIA

The Indian government and Non-Goverment organizations have been collecting

statistics on the ayurvedic system in India and these data about the manpower
and institutional aspects of Ayurveda have been emerged:
Number of registered medical practitioners:366,812
Number of dispensaries: 22,100
Number of hospitals :2,189
Number of hospital beds: 33,145
Number of teaching institutions (undergraduate):187
Number of upgraded postgraduate departments:51
Number of specialities in postgraduate medical training:16
Number of pharmacies manufacturing ayurvedic medicines:8,400

20
In India, 60% of registered physicians are involved in non-allopathic systems of
medicine. In addition to the nearly 4, 00,000 Ayurvedic practitioners, there are
over 1, 70,000 homeopathic physicians; India has about 5,00,000 medical doctors
(similar to the number in the U.S., but serving nearly 4 times as many people).
Reliance on Ayurvedic medicine is heavy in certain regions of India, such as
Kerala in the Southwest. Many Ayurvedic practitioners in small villages are not
registered.

Exim Bank Study Highlights Export Potential of Ayurveda and Siddha Products &
Services

Exim Bank's latest publication titled "Exporting Indian Healthcare", highlights the
prospects for export of Ayurveda and Siddha products and services and the issues
involved therein. The book was released by Shri Anandrao Adsul, Hon'ble
Minister of State for Finance (Expenditure, Banking and Insurance), Government
of India, at a function organised by Exim Bank in New Delhi on April 4, 2003.

India has been using its rich biodiversity in the healthcare segment for many years. Its
rich traditional experience and wisdom is ensconced in the Ayurveda and Siddha
systems of medicine. The study explores the infrastructure facilities in the Indian
systems of medicine highlighting the lacunae in the area of educational
infrastructure, research and development, standardisation and quality control.

21
Exports of Ayurveda and Siddha products and services offer huge potential,
considering that over 80% of the world population relies on the traditional
systems of medicines to meet their primary healthcare needs. World demand for
herbal products has been growing at a rate of 10% -15% per annum. There is also
a growing demand for natural products including items of medicinal value in the
international market. The medicinal plants related trade in India alone is
approximately Rs 5.5 billion. Global market for herbal products, which include
medicines, health supplements, herbal beauty and toiletry products, is estimated
at around US $ 62 billion. Out of this, the market for herbal medicine alone is
estimated at around US $ 5 billion and is expected to reach US$ 16 billion by
2005.

22
The global herbal product markets, (estimated at US $ 16.7 billion in 1997) are
mainly in Europe and North America, which together account for 63% of the
world market. The European market for herbal remedies accounts for 45% of the
global market, and stood at US $ 7.5 billion in 1997. Germany and France are the
most established markets with a share of 22% and 11% in Europe, respectively.
China is the major exporter of traditional medicine to the world market. India
needs to organise itself well to get any significant share in this growing market
segment.

The study identifies both supply-side constraints such as lack of standardisation, lack
of knowledge on international regulations governing the imports of such
products, etc., as well as demand dynamics in the overseas market, which inhibit
India's exports of Ayurveda and Siddha products and services. In addition, the
issue of intellectual property is also touched upon. The challenges facing the
traditional medicine system today is how to optimise the use of intellectual
property rights by the rights holders and to prevent its abuse and misuse by non-
rights holders.

The study concludes with a set of recommendations, at both macro and micro levels,
to support the export efforts of Ayurveda and Siddha products manufacturers and
service providers in order to consolidate, mobilise and organise the sector. With
the global market growing at a much faster rate than the domestic market, the
Ayurveda and Siddha manufacturers need to orient themselves to cater to the
export needs. Organising the structure of the Ayurveda and Siddha sector and
developing it as a parallel pharmaceutical industry and medical practice through
modernisation and upgradation is vital for the sector to flourish.

23
Promoting Ayurveda and Siddha products and services as export items calls for an
integrated effort from Government, industry, and educational and research
institutions. Developing export markets would require innovative measures such
as creating a few clusters - Ayurveda and Siddha cooperatives and parks. Given
the support for global competitiveness by the government, possibilities of setting
up Ayurveda and Siddha hospitals and centres abroad can be explored.
Simultaneously, the industry needs to focus on the development of services that
can be exported, and project Ayurveda and Siddha as complete health packages.
The opportunities offered by exports of Ayurveda and Siddha products and
services are immense and can be realised, provided persistent and focused efforts
are made by all stakeholders.

INDIAN HERBAL TRADE IN WORLD SCENARIO

The utilization of herbal drugs is on the flow and the market is growing step by step.
The annual turnover of the Indian herbal medicinal industry is about Rs.2300
crores as against the pharmaceutical industry’s turnover of Rs. 14500 crores with
a growth rate of 15 percent. The export of medicinal plants and herbs from India
has been quite substantial in the last few years. India is the second largest
producer of castor seeds in the world, producing about 1,25,000 tonnes per
annum. The major pharmaceuticals exported from India in the recent years are:

Isabgol,

Opium Alkaloids,

Senna derivatives,

Vinca extract,

Cinchona alkaloids,

Ipecac root alkaloids,

Solasodine,

Diosgenine/16DPA,

Menthol,

24
Gudmar herb,

Mehdi

EXPORT CHANNELS
In India, enterprises provided typical export flows for their exported medicinal
natural products. For example, one Indian enterprise operating in a Special Export
Zone (SEZ) provided an example of their U.S. trade channels. They export to a single
exclusive master distributor who in turn re-distributes into four different channels:
Manufacturing Facility in SEZ - Exclusive / Master Distributor in the USA.

• Wholesale Distribution Companies servicing retail stores ► Retail

Stores

• Wholesale Distribution Companies servicing practitioners ►

Practitioners (Doctors of Chiropractic, Naturopathy, and Osteopathy, among
others)

• Mail Order Companies servicing consumers

• Own Company Outlets (health stores, nutritional consultants (Vaidyas)

and spas);

Some of the enterprises stated that they do not export directly at this time but their
authorized dealers are exporting their products to countries including Malaysia, UAE,
and USA. This product manufacturer desires to eventually export and market its
products directly to selected foreign markets. They are also aware that there may be
some risks involved with the present situation of products being exported only via
secondary distributors.

In the current scenario the manufacturer is selling to about 2,000 franchised retail
pharmacies in India. Some of these franchises are exporting products directly to
clinics and doctors in foreign markets including the UK. The manufacturer may not
even know how many Indian retail pharmacies are exporting its products and under
what conditions. It is also possible that some pharmacies may have notified or

25
registered the manufacturer‘s products in certain foreign countries without the
manufacturer‘s knowledge. In any case, neither the Indian retail pharmacy exporter
nor the foreign clinic or physician importer will have the capacity or resources for
proper legal notification and registration of these medicinal products. Therefore, the
product manufacturer is considering how to take control over its current export
business which is presently occurring outside of their control.

26
INDIAN EXPORT PROMOTION STRUCTURE

Presentations made at the Hi-MAPs Conference 2008, organized by ASSOCHAM

and NMPB, clarified the India export promotion structure for natural medicinal
products under three separate export promotion organizations as shown in Table
below:

INDIAN EXPORT STRATEGY FOR NATURAL MEDICINAL PRODUCTS

The ―Report of the Sub Group on Research & Industry of the Steering Committee
on AYUSH for the Eleventh Five-Year Plan (2007-2012)42 have proposed two
export-oriented schemes: ―Schemes for Development of New Formulations,
Technologies, Tools and Practices with Validation of Existing Products and
Procedures, and ―Scheme to Identify, Promote and Develop ―Star product(s) for
the International market and Brand Promotion for the ASU sector – domestically and
internationally.

The central objectives of the Schemes for Development of New Formulations, etc,
would be to
1) Provide funding for AYUSH Industry / entrepreneurs who are desirous of
launching new products and aiding their technical development and validation
as per GLP, GCP, GMP and other norms for a world class product dossier;

2) Provide funding for research & development of new products that fall within
the classification of nutritional and dietary supplements; and

3) Promote development of technologies, tools, practices and implements to aid

the growth of AYUSH/THS practices.

27
The measurable outputs for this Scheme in the 11th plan would be the
1) Development of globally acceptable standardized AYUSH
formulations catering to immense global demand for natural products through
PPP model;

2) Acceptance of AYUSH products for foreign drug control and food

regulatory authorities for marketing and distribution;

3) Rise in exports of products put up for retail sales from the AYUSH
sector to Rs 3000 Crore by 2012 from Rs 120 Crore in 2005; and

4) Diagnostic tools and implements for a minimum standard of AYUSH

practices in the country. The total outlay for this Scheme for the 11th plan (5
years) is estimated at 50 Crore.

The central objectives of the ―Scheme to Identify, Promote and Develop ―Star
product are as follows:

1) To identify ― star product(s) from India to the world on the lines of ginseng
and develop it for the international market;

2) Establishment of a Export Certification mechanism for accrediting individual

Product Dossiers for ease in Registration in foreign countries and guarantee of
pre-shipment Quality Assurance;

3) Establishment of a National Fund for creating brand equity in AYUSH mark

and TQS for domestic and foreign markets

4) To promote bilateral discussions between Health Ministries of foreign

countries and India, for automatic acceptance of AYUSH registered products
and AYUSH practitioners

The measurable outputs for this scheme for the 11th plan would be:

1) Emergence of AYUSH products having international standing;

2) Prevention of adverse reports regarding Quality of Ayurvedic formulations in

foreign markets;

28
 3) Establishment of a bilateral dialogue between India and health authorities for
acceptance of AYUSH products;

4) Promotion of AYUSH brand through awareness campaigns undertaken in

major markets for natural products;

5) Facilitation for AYUSH Industry to participate in global trade fairs,

expositions and gain insight on global benchmark;

6) Establishment of a network of laboratories as essential technological

infrastructures to aid and assist TQS and scientific work in our country;

7) Increase of exports of value added from the sector to Rs 10,000 Crore from
the current Rs 1200 Crore;

8) Establishment of an ASU Brand promotion agency and programme in interest

of AYUSH sector in India and internationally.

QUALITY CONTROL AND CERTIFICATION

Quality assurance and certification mechanism to further the cause of export of
botanicals needs to be developed and put in place; ―Lack of quality control,
standardization and non-availability of accredited certification mechanism form one
of the major reasons for India’s meager share in global trade of botanicals. Even for
the national trade, the same very factors keep many a potential clients away from the
classical formulations. The need for putting in place a quality assurance regime and a
certification mechanism need no emphasis. It assumes greater significance in view of
the WTO guidelines. Quality assurance and certification mechanisms will be studied
and an appropriate system put in place.

• Enabling Legal and Administrative Measures: That enabling legal and

administrative provisions for cultivation and export of medicinal plants needs
to be put in place; ―The medicinal plant sector at present is governed under a
multiplicity of rules and guidelines. No wonder that these legal and
administrative provisions have failed to regulate the collection, cultivation and
marketing medicinal plants. Issues like price harmonization between
cultivated and collected medicinal plants and putting in place a cultivation
friendly regulatory regime in place for medicinal plants on the restricted list of

29
 exports are some of the major areas requiring attention. There is thus a felt
need to study all these provisions and evolve national guidelines to promote
this sector. Nation-wise policy studies will be initiated and representatives of
various stakeholder groups involved in formulating policy guidelines for
development of this sector.

• Special Medicinal Plant Processing Zones: “The herbal sector has remained
neglected over a long period and needs a kick start to give it developmental
push. It is proposed to set up agro-climatic region-wise medicinal plant
processing zones (MPPZs) to promote organized collection from wild and
cultivation of priority species. These MPPZs will also be provided with
facilities for post harvest management, storage, semi-processing, quality
checks, packaging and trade. It is intended to gradually reduce the exploitation
of the gatherer and the farmer engaged in medicinal plant collection and
cultivation and to ensure better returns to him. The MPPZs will, in future,
become centres for production and procurement of quality botanicals.

30
OVERALL EXPORTS FROM AYUSH INDUSTRY

Economic region wise Export Analysis for AYUSH Products[Rs Lacs]

Economic region Mar.200 Mar.2007 Mar.2008 Percentag CAGR

6 e
Developed region 10906.73 11232.81 16331.28 50.09 22.37
Developing Country 9718.99 10899.12 12581.43 38.59 13.78
Least Developed 3011.04 4167.82 3691.12 11.324 10.72
Countries
Grand Total 23636.76 26299.75 32603.83 100 17.45

REGION WISE EXPORTS

31
BARRIERS TO HERBAL EXPORT
Indian exports to the western countries are being increasingly threatened with
various non tariff barriers raised by the regulatory bodies of these nations.
Pharmaceutical exports from India to the US, Europe, Africa and Latin
America are already in trouble on account of the entry barriers imposed by
the European and US governments during last two years.

Now, India's ayurvedic exports to Europe are going to get hit quite badly
from 2011 if the European Union is successful in enforcing the Traditional
Herbal Medicinal Products Directive (THMPD). The directive is expected to
take effect from April 2011 and can seriously bring down the Indian herbal
exports to these countries. The directive does not seem to be entirely a non
tariff barrier as there has been certain serious quality issues relating to Indian
herbal exports in the past. THMPD is stated to have framed to provide a
regulatory approval process for herbal medicines entering the EU countries.

Since October 2005, herbal medicines in most EU countries are being

controlled under the EU regulation, 2004/24/EC. This new rule stipulates that
a company intending to export its herbal medicines to EU needs to
demonstrate the safety and efficacy of the same through traditional use. It
demands that for a product to apply for traditional use registration, it should
provide sufficient data to prove that it has been in use for a minimum period
of 30 years and 15 years in use within the EU. A transition period of seven
years is, however, given to companies to take necessary corrective measures
to comply with the new EU norms as many of their products may not pass
the new registration procedure.

The demand for herbal products and ayurveda system of treatment have been
on the rise in Europe and North America mainly because of the growing
Indian population. A large number of ayurvedic preparations are being thus
exported to these countries over the years. These exports were never
subjected to strict regulatory scrutiny for several years in these developed
countries as they were regarded as food supplements and nutraceuticals. But

32
after detection of certain substandard herbal and ayurvedic products with
heavy metal contents in recent years, the regulatory authorities in these
countries have become cautious. THMPD was framed after such quality
problems were noticed.

India lacked quality guidelines for herbal products for long and there are
thousands of small and tiny units manufacturing these products but observe
no standards in procuring raw materials and in manufacturing. This approach
needs to be changed and manufacturers of these products have to adopt
modern scientific practices if they have to remain in the market and sell their
products abroad and in India. National Medicinal Plants Board under the
Department of Ayush, in collaboration with the WHO's Country office for
India, has issued a comprehensive guideline on Good Field Collection
Practices for India. The Department has also started an 'Ayush' certification
as a mark of quality standard approved by the Quality Council of India.
These are positive initiatives by the Central government and the units of all
sizes have to fall in line sooner than later if they have to survive in the
competitive environment.

33
RATIONALE OF THE STUDY

Exports and Imports play an important role in a country’s economy and it has its
effect on a country’s Balance of Payment position. India has been trading a number of
AYUSH products to various countries not only to meet its own domestic demand but
also to import/export the scarcely available products. The main rationale behind this
study is to get an overview of AYUSH products & its future prospects and also the
export potential of AYUSH products from India.

OBJECTIVE OF THE STUDY

The objective of the research project is:

• To study about the working of Department of AYUSH in India.

• To study the export potential of AYUSH products from India.

34
 METHODOLOGY

The basic knowledge about the workings of AYUSH has to be gathered thorough the
secondary data available on the internet and the documents available in the
institute library. The quantum of information on this subject matter is enormous
and updated. The secondary sources such as internet and news articles cover
almost all major players.

Research is a common parlance refers to search for knowledge. It comprises defining

and redefining problems, suggested suggestions collection, organising data,
making detection and determines whether they fit the formulated hypothesis.
Research methodology is a way to systematically solve the research problem.
Research is thus an original contribution to existing stock of knowledge for its
advancement.

In short, the research for knowledge through objective and systematic method of
finding solution to the problem is research. Research methodology is a way to
systematically solve the research problem. When we talk of research
methodology we not only talk about research method but also consider the logic
behind the research method we have used in the context of the research.

THE STUDY
It is exploratory study to analyze export potential of AYUSH products from India and
to develop the comprehensive understanding of the factor affecting the export and to
develop suggestions to overcome it.

THE SAMPLE
The data of last thirteen years (1995-96 to 2008-09) based on the present AYUSH
products export from India to other countries and its growth as per past years data is
selected.

35
THE TOOLS

i) Data Collection
Secondary Source: Those, which have already been collected by someone
else and which have already been through, the statistical process and thus are
available on internet sites and any other media for that matter. The secondary
data will be collected from internet and references from Library.

ii) Data Analysis: The data were analysed through Trend analysis technique
using SPSS statistical software for a suitable forecasting model based on
export data. Graphs and tables will be used for presentation of the data and
findings to make it apparent and understandable

36
 RESULTS

TREND ANALYSIS
EXPORT OF AYUSH PRODUCTS
(Value in Rs. Crores.)

Year Value Trend Value

1995-96 627.48 764.55

1996-97 884.65 880.92

1997-98 1107.75 997.29

1998-99 1276.28 1113.66

1999-00 1324.73 1230.02

2000-01 1364.13 1346.39

2001-02 1278.68 1462.76

2002-03 1864.88 1579.13

2003-04 1227.06 1695.50

2004-05 1657.69 1811.87

2005-06 1939.96 1928.23

2006-07 2186.96 2044.60

2007-08 2275.64 2160.97

2008-09 - 2277.34

2009-10 - 2393.71

2010-11 - 2510.07

2011-12 - 2626.44

2012-13 - 2742.81

37
 TREND
export

38
3
-1
12
20 -12
11
20 -11
10
20 -10
09
20 -09
08
20 -08
07
20 -07
06
20 -06
05
20 -05
04
20 -04

Year
03
20 -03
02
20 -02
01
20 -01
00
20 -00
99
19 -99
98
19 -98
97
19 -97
96
19 -96
95
19

3000

2000

1000

0
Value in Rs. Crore
The data available for the thirteen years of exports of AYUSH products (Ayurveda,
Yoga, Naturopathy, Unani, Siddha, Homoeopathy) shows constant increase in
the export. The export have shown a very good growth in the year (2006-07;
2007-08) the growth of exports have been great and the requirement is also
fulfilled by Indian exporters because of the proper production in those years and
the proper climatic conditions were also there.. However, apart from that the
growth of exports has been registered from the data available of past thirteen
years. There is an immense potential in the coming years in this sector because of
increasing demand in these markets. Talking about the trend analysis of the data
is not having much difference in them but yet increasing so we have an on the
line graph because there is not much difference in the data registered. The new
reformed policies introduced by the government in the latest foreign trade policy
i.e. 2009-2014 have also announced various schemes and incentives for the
exporters to promote exports.

39
 DISCUSSION

The results which are being obtained by analyzing the data with the help of trend
analysis which has shown that there is a lot of potential in exporting of AYUSH
products to the different countries.

The major markets for AYUSH are Africa which represents 6% of AYUSH exports,
CIS (mainly Russia and Ukraine), SAARC, Middle East and ASEAN.

Products that are primarily exported includes following-

• Dietary Supplements – single herb tablets, massage oils, poly herbal simple
OTC formulations
• Ayurvedic branded medicines – Rx and OTCx formulations
• Ayurvedic classical products – only SAARC
• Ayurvedic personal care products – toothpaste, hair oil, creams, etc...

The salient feature of Ayurveda, Sidha and Unani medicines is that the raw materials
are used by in large in wholesome form providing synergy of the phyto constituents
to form the basis of therapeutic effect.

It is generally estimated that over 6000 plants in India are in use in traditional, folk
and herbal medicine, representing about 75% of the medicinal needs of the third
World countries. Three of the ten most widely selling herbal medicines in the
developed countries, namely preparations of Allum Sativum, Aloe barbedensis and
Panax sp. Are available in India.

Renewed global resurgence of interest in the plant remedies has over the years given
a tremendous fillip to the growth of traditional medicine sector in the country, where
classical medicines described in the recognized texts of Ayurveda, Sidha and unani
systems as well as the proprietary & patent formulations are regulated under the
provisions of Drugs and Cosmetics Act, 1940.

40
National Medicinal Plants Board under the Department of Ayush, in collaboration
with the WHO's Country office for India, has issued a comprehensive guideline on
Good Field Collection Practices for India. The Department has also started an 'Ayush'
certification as a mark of quality standard approved by the Quality Council of India.
These are positive initiatives by the Central government and the units of all sizes have
to fall in line sooner than later if they have to survive in the competitive environment.

India is a developing country and a member of World Trade Organization, therefore

maintains benchmark in this category that are exported to different countries. Hence,
the Result and Trend has shown ultimate growth in this sector.

41
 SUMMARY

The report is divided into six chapters.

1. The first chapter, i.e., is introduction with the concept of the topic, various
previously done studies in the related field and objectives of the study.

2. In chapter two that is, Research Methodology, takes a look how the research
was conducted. Mainly it discussed the study and tools.

3. The result of the study is Chapter Three.

4. In the Chapter fourth, the discussion is there.

5. Chapter five deals with conclusion, summary and suggestion.

6. In the Chapter five the possible implication of the study has been given.

42
 CONCLUSION

After analyzing the past 13 years data using trend analysis and predicting future data,
a growth can be seen in the exports of AYUSH products from India. If exporters
follow, the norms and standards placed by World Trade Organization, then for sure
there will be a high growth and India will be able to export more AYUSH products to
the these countries. If there will be total government support through good reforms
and policies then there will be good amount of growth in the exports of AYUSH
products and this sector will become one of the decent foreign exchange earners in
the upcoming years.

Product wise analysis shows that:

• Homoeopathic products – allowed in almost all countries ;
traditionally from Germany.
• Unani products – common heritage to GCC countries.
• Ayurveda – Ethnic rights to use their system of medicine.
• Siddha – ASEAN potential has immense value.

Large industry units like Dabur, Himalya, Charak and Zandu are hardly fourteen in
number each with average annual turnover more than Rs. 50 crores. These
entrepreneurs contribute major part of the export of herbal health care products. There
are many medium and small units having a good range of R & D based quality health
products, but there presence in global market is not seen owing to numerous reasons,
the prominent being stringent regulations and high registration fee for market
authorization. Such entrepreneurs having potential to enter foreign markets need hand
holding and support.

Expert assessments in each target country of the potential opportunities for selected
star Indian natural products that could stand on their own as condition-specific
products in competition with allopathic drugs and/or other natural medicinal products
that share the same indications for use. The star product selection may likely vary
from country to country due to cultural differences and varying health concerns
among the targets groups of consumers, as well as regulatory differences concerning
the allowable indications for use for this class of products. So, understanding of
global market and emerging trends is the basic prerequisite to stay and grow in
international markets

43
 SUGGESTIONS

Based on the study of the exports of the AYUSH products to different countries I
recommend the following:

• Scientific standardization for products needs to be done.

• We need to popularize crude herbs and extracts into value added formulations.

• India lacked quality guidelines for herbal products for long and there are
thousands of small and tiny units manufacturing these products but observe no
standards in procuring raw materials and in manufacturing. This approach
needs to be changed and manufacturers of these products have to adopt
modern scientific practices if they have to remain in the market and sell their
products abroad and in India.

• Assistance should be provided to AYUSH manufacturing units to establish in-

house quality control laboratories for testing of raw materials and finished
products to ensure quality control of AYUSH products.

• Proper assistance should be provided to AYUSH units to upgrade their

infrastructure to acquire certification for export purposes.

• It is also recommended that future steps be designed and differentiated at

levels appropriate to size of enterprise, micro-, small-, medium-, or large. A
program to assist micro- and small- sized companies grow sustainably within
their local or regional markets may be the most appropriate program
approach.

• To safeguard patent rights of AYUSH products.

44
 IMPLICATIONS OF THE STUDY

The study will help all the individuals who are associated with the agriculture
industry Sector in India. This research project aims to help to get them the total
information of the coming trend and present situation of AYUSH products exports

1 For Exporters
The study will help them to find out the potential of AYUSH products. The
research study helps in analyzing the current scenario of AYUSH products all
over the world.

2 For Researchers
The study being based on secondary data available through Internet, Newspapers,
Journals, Magazines, Government Websites etc. highlights the areas where
researchers can carry out further studies to understand Indian Herbal Industry.

3 For Government
The study has generated useful suggestions for the government. If the
government implements the suggestions generated on the basis of study. It will
help to promote Indian Herbal Industry.

45
 REFERENCES

Webliography
“EXPORT POTENTIAL OF AYUSH PRODUCTS FROM INDIA” retrieved data
from these websites on 16 MAY 2010:

www.indianmedicine.nic.in .

www.pharmexcil.com .

www.commerce.nic.in .

www.indianembassy.org

www.ayurvednews.com

www.eximbankindia.com

www.ayurveda-herbal.com

www.pharmabiz.com

46