India’s traditional healthcare heritage is emerging as a significant economic opportunity, driven by growing domestic demand, international wellness tourism, expanding exports and government support. With Ayurveda at its centre, the country is positioning itself as an important destination for traditional medicine and holistic wellness.
By Shinto Kallattu
India’s Ayurveda and wellness sector is undergoing a significant transformation. Traditionally associated with herbal medicines, natural therapies and indigenous healing practices, Ayurveda is now part of a wider healthcare ecosystem encompassing specialised hospitals, wellness resorts, preventive healthcare, pharmaceutical manufacturing, research and medical tourism.
Growing international interest in holistic wellness, lifestyle management and traditional healthcare approaches is creating new opportunities for India. Its established Ayurveda knowledge base, skilled practitioners, medicinal plant resources and expanding healthcare infrastructure provide a strong foundation for this growth.
A Growing Economic Sector
The economic contribution of traditional healthcare is becoming increasingly significant. According to a September 2026 assessment by the Research and Information System for Developing Countries (RIS), India’s AYUSH services economy was estimated at US$36.92 billion in FY2024–25, with Ayurveda contributing approximately US$17.73 billion, or nearly 48% of the total.
The broader AYUSH services economy recorded a compound annual growth rate (CAGR) of 16.91% between FY2022–23 and FY2024–25 and supported approximately 1.76 million direct livelihoods. These figures highlight the growing importance of traditional healthcare in India’s services economy.
Exports and International Market Opportunities
India’s herbal and traditional medicine industry is also gaining international attention. According to government data, exports of AYUSH and herbal products reached US$688.89 million in FY2024–25, registering a 6.11% increase over the previous financial year.
International demand for herbal formulations, plant-based wellness products and traditional healthcare preparations offers opportunities for Indian manufacturers. However, expanding into overseas markets will require consistent product quality, scientific validation, regulatory compliance and internationally recognised manufacturing standards.
Wellness Tourism and Medical Value Travel
Ayurveda is becoming an important component of India’s wellness tourism proposition. Destinations such as Kerala have established international recognition for traditional therapies, Panchakarma programmes and Ayurveda-based wellness retreats. Other states are also developing facilities combining Ayurveda, yoga, meditation and hospitality.
The RIS assessment estimated that India’s wider AYUSH services sector generated US$1.77 billion in Medical Value Travel revenue in FY2024–25. International patients accounted for approximately 5% of patient volumes but contributed an estimated 15–25% of hospital-segment revenues.
For India’s medical tourism industry, Ayurveda offers an additional opportunity to diversify the country’s healthcare proposition. Specialised treatment centres, qualified practitioners, international patient assistance, multilingual services and transparent treatment protocols will be important in attracting overseas visitors.
Government Support and Industry Development
The Ministry of AYUSH has been instrumental in strengthening traditional healthcare through policy initiatives, institutional development, research and quality improvement. The National AYUSH Mission supports the expansion of AYUSH infrastructure and access to traditional healthcare services.
Research organisations such as the Central Council for Research in Ayurvedic Sciences (CCRAS) are working to strengthen the evidence base through clinical research, pharmacological studies and medicinal plant research.
India’s hosting of the second WHO Global Summit on Traditional Medicine in December 2025 also reinforced its role in international discussions on traditional medicine, scientific evidence, safety and quality standards.
The Road Ahead
Despite its considerable potential, the Ayurveda and wellness industry must address challenges involving standardisation, clinical research, product safety, practitioner training and international regulatory requirements. Responsible marketing and scientifically supported healthcare claims are equally important to maintaining global credibility.
The RIS assessment projects that the broader AYUSH services economy could reach US$216–318 billion by 2047. This projection will depend on sustained investment in infrastructure, research, technology, professional education and international partnerships.
India’s Ayurveda and wellness economy represents an important opportunity to connect traditional knowledge with modern healthcare delivery and global wellness demand. With stronger quality systems, credible research and patient-centred services, India can further establish itself as a leading international destination for Ayurveda, traditional medicine and holistic wellness.