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India’s Ayurveda sector is experiencing strong domestic momentum, driven by rising consumer preference for natural wellness products, expanded retail presence, and greater government support for Ayush initiatives.
However, this growth surge contrasts sharply with challenges emerging in international trade, as the newly imposed US customs tariffs have increased costs for key herbal ingredients and extracts sourced from India. The duties are straining exporters, reducing competitiveness in one of their largest markets, and creating uncertainty for companies that rely heavily on US demand, even as the industry thrives at home.
Jayashree Ullal, CFO & COO, Himalaya Wellness Company, said that the Ayurveda industry in India is evolving into a global wellness powerhouse. Integrating traditional knowledge into modern innovation is creating globally accepted evidence-based Ayush products. Scientific-validation, advanced technology, Quality by Design (QbD) and DNA barcoding are ensuring full attention to authenticity, quality, safety, and sustainability. This is powered by cGMP manufacturing, stringent regulations, and rising global demand for natural care.
The industry is poised to leverage AI technology in Ayurveda meeting next-generations’ expectations, which will ensure the sector to achieve exponential export growth while providing authentic, personalised, consumer-friendly ayurvedic solutions to the world, Ullal told Pharmabiz in an email.
On US tariff impact on Indian herbal exports, Dr Amit Agarwal, chief executive office, Natural Remedies, noted, “The US custom tariffs have deeply affected overall herbal exports to USA. There are many companies waiting and watching the situation. Sales have drastically reduced as only a few American companies are willing to bear the tariff burden and most others are waiting for tariffs to normalize. The Indian exporters are not in a position to absorb such high tariffs and remain financially viable.”
Commenting on the export of herbal ingredients from India, Dr Agarwal said that in the case of pharmacopoeia quality there are inherent gaps. This is where our company, Herb Artizan, takes pride in offering organic and fair trade certified herbal ingredients which comply with international pharmacopoeia quality. We find difficulties in meeting pharmacopoeia quality with some heat sensitive herbs as the pharmacopoeia standards are often written on unsterilized herbs while the market demands pathogen free/heat-treated herbs. The standard setting bodies need to take cognizance of this fact and develop standards for (preferably organic certified) heat-treated botanicals, else there will always be some gap in actual commercial practices and the prescribed pharmacopoeia standards.
Dr DBA Narayana, CSO, Ayurvidye Trust said that with many efforts by the Ayush Ministry and Government of India during and post Covid, there has been growing awareness and some acceptance for herbal based products including Ayurvedic products.
Dr Lal Hingorani, managing director, Pharmanza Herbal said that Ayurveda manufacturing traces its roots back to the Vedic period, a time when the foundational practices and principles of Ayurveda were first established. These early methods of preparing Ayurveda remedies and products have endured through the centuries, continuing to guide contemporary manufacturing techniques.
This growing interest has prompted the adoption of large-scale manufacturing processes, which has played a crucial role in making Ayurveda products more readily available and accessible to a wider audience.
Delving into the Indian Ayurveda exports and the growing global awareness, Dr Hingorani said that the US has emerged as one of the largest markets for Ayurvedic goods. Although there is currently a slowdown in exports due to tariff-related issues, it is anticipated that the market will recover and growth will resume once these challenges are addressed.
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