Post-COVID pandemic, a medicinal plant, Giloy (Tinospora cordifolia), saw a major spike in research papers as experts explored natural immunity and disease management properties.
Giloy is deeply ingrained in India’s traditional medicine system, Ayurveda, which includes plant-based therapy as a core component of its healing practices.
The ancient practice uses hundreds of medicinal plants to balance the body’s three doshas (types of substances), Vata, Pitta, and Kapha, which are believed to govern health and disease. Each plant has specific properties that influence how it interacts with these doshas.
Plant-based ingredients are combined into decoctions, powders, oils, tablets, and pastes for various treatments, preventing illness and curing conditions, from digestive issues to chronic diseases.
Apart from giloy, other common plants, herbs and trees used in Ayurveda are aloe vera, amla, ashwagandha, brahmi, tulsi (holy basil), triphala, neem, etc.
These medicinal plants are increasingly integrated into products across health, wellness, personal care, and even food industries.
At the same time, companies, especially those aligned with Ayurvedic and natural product trends, are actively driving the growth of medicinal plant cultivation and use.
In 2014, the Indian government formed the Ministry of AYUSH with a vision of reviving the knowledge of ancient systems of medicine and ensuring the optimal development and propagation of Ayurveda-based healthcare.
AYUSH encompases Ayurveda, Yoga, and Naturopathy, Unani, Siddha and Homoeopathy.
The Ministry has initiated many notable steps to promote the acceptance of Indian traditional medicine culture in healthcare infrastructure development, research collaborations, export promotion mechanisms, educational reforms, and global expansion.
In 2019, recognising the increasing scientific interest in medicinal plants, the Ministry has taken steps to support scientific research and promote evidence-based practices in traditional medicine.
In 2023, the Ayush Visa was launched to promote India as a travel destination for medical tourism. This special visa scheme is intended for foreigners visiting India seeking treatment under the Indian system of medicine, like therapeutic care, wellness, yoga, etc.
In August 2023, the Ministry and the World Health Organisation organised the first-ever Global Summit on Traditional Medicine. At the summit, WHO shared the initial findings of the global survey on Traditional Medicine, which indicates that the reach is on the rise globally.
Efforts are also underway to establish the WHO Global Traditional Medicine Centre (GTMC) in Jamnagar, Gujarat, that will serve as a key knowledge hub for evidence-based Traditional Complementary and Integrative Medicine.
To promote Ayurveda as a scientific, evidence-based, and holistic system of medicine that plays a pivotal role in preventive healthcare and wellness, India also celebrates 23rd September as Ayurveda Day.
Through government-led initiatives, rising consumer interest in traditional medicine, and a growing export market, India’s AYUSH industry is experiencing significant traction and expansion.
The sector has seen impressive growth, with manufacturing output rising from US$ 18 billion in 2020 to US$ 24 billion by 2024. Combined with the AYUSH service sector, valued at US$ 26 billion in 2024, the total industry value now surpasses US$ 50 billion.
Looking ahead, the Indian AYUSH market is expected to surge from US$ 43.3 billion in 2024 to US$ 200 billion by 2030—an almost eightfold increase over the past decade, signalling exponential growth.
Surge in Demand for Medicinal Plants
The growing traditional medicine market, especially post-COVID, is fuelling huge demand for medicinal plants. Apart from serving the health seekers, the sector has opened new economic and market opportunities.
Apart from classical formulations like Chyawanprash, newer products like herbal shampoos, creams, face packs, and soaps use plant-based ingredients.
Herbal teas, infused water, nutraceutical bars, and fortified juices with aloe vera, moringa, amla, etc., are also catching the fancy.
Large companies like Patanjali, Himalaya, and Dabur engage in contract farming to ensure a consistent supply of herbs and plants.
Smaller companies and startups like Kapiva, Forest Essentials, Biotique, Ahinsa Care, Beco, etc, often source from the local farmers.
Many of these companies are expanding into international markets, especially for supplements and herbal cosmetics, further creating markets for farmers to grow medicinal plants.
Increased cultivation of medicinal plants creates income streams for farmers, especially in rural and tribal regions. This can contribute to rural development and livelihood diversification.
Recently, a stakeholder consultation was held to promote the cultivation and use of medicinal plants in India.
The meetings saw participation from different Indian policymakers, including the Ministry of Agriculture and Farmers Welfare, the Ministry of AYUSH, the Ministry of Food Processing Industries, National Plant Medicinal Board, State Horticulture Missions, State Medicinal Plant Boards, progressive farmers and leading private players from the Medicinal Plant industry.
During the meeting, various participants and stakeholders suggested identifying crop-specific areas for clusters dedicated to medicinal plants.
These clusters would focus on area expansion, production, industry partnerships, farmer training and marketing through setting up specialised mandis for these crops, ensuring remunerative prices for the farmers.
In the meeting, it was highlighted that there is scope to increase domestic production of medicinal plants as inter-state trade and export of medicinal plants.
Exploring avenues for developing region-specific medicinal plant clusters and facilitating partnerships between farmers and industry players for assured procurement and end-to-end value chain development.
Additionally, the establishment of a dedicated marketplace and marketing platforms can ensure fair prices for farmers.
Emphasis was also made for better convergence between the Ministry of AYUSH and the Agriculture departments, and collaboration with State Medicinal Plant Boards to promote medicinal plants at the national level.
Mission-mode programs for medicinal plant cultivation, identifying good practices of cultivation, efficient techniques, etc., can help in the upliftment of the sector.
Wrapping Up
The renewed interest in Ayurveda supports the revival of traditional healing practices and indigenous knowledge systems, fueling growth in medicinal plants.
However, unsustainable wild harvesting, especially of rare species, can lead to ecological imbalances and endangerment of certain plants.
Further, as demand increases, ensuring the consistency and purity of medicinal plant materials becomes critical. Contaminated or adulterated raw materials could undermine trust in Ayurvedic products.
The boom needs to be accompanied by robust policies on cultivation practices, trade, and intellectual property rights to avoid exploitation and ensure ethical sourcing.
If cultivated and harvested sustainably, medicinal plants offer a renewable source for natural remedies, reducing reliance on synthetic drugs with higher environmental costs.
Overall, the rise in medicinal plants due to Ayurveda’s popularity presents a strong opportunity, but it needs careful regulation and sustainable practices to be truly beneficial.
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