25

Chapter 2

The Evolution of Ayurvedic Sector

The present chapter attempts to trace the evolution of Ayurveda, its

growth into an industry at global and national levels. The history of Ayurveda is the

history of a great civilisation. It is the part and parcel of culture, tradition and beliefs

that was transmitted from one generation to other, either verbally or vocally.

Ayurveda can be called the medical tradition of ancient culture. But Ayurveda has

stood the ravages of time. Ayurveda aims in healing body, relaxing mind, soothing

soul and renewing spirit. This system of medicine believed to have developed 5000

years ago, has its roots in India.

As in the case of any evolution, the origin of Ayurveda is widely

debated. These are several versions and interpretations regarding the origin of

Ayurveda. Some are logically consistent while others are mere folk stories. An

attempt to codify these varied views is done in the succeeding section.

2.1 Evolution of Ayurveda

History occupies a less significant spot in our thought process. We

have myths and legends in abundance but legendary accounts cannot be substitutes

for historical facts. This realisation led historians to trace the routes which the living

traditions have traversed.

According to age old belief Ayurveda, is „infinite’ and was revealed to

the sages. This notion gives spiritual sanctity to the science. For those who consider

that Ayurveda is complete in itself, any addition or deletion is an offence. This

approach discourages the spirit of enquiry, which in turn leads to decadence. The

protagonists of renaissance have realised this pitfall. To rejuvenate Ayurveda they

insisted on the study of its evolution. Search for roots thus became the prime concern

26

of the scholars during the first quarter of the last century. The main obstacles in the

study of history of the Ayurveda are the absence of reliable history of Indian society

and the lack of chronology of various movements (Varier, 2005).

2.1.1 Mythological Interpretations

According to Ashtangahridaya1, Ayurveda has no beginning. Lord

Brahma revealed it to Prajapathi. He passed it to Indra. But even these mythological

versions are mutually conflicting. For instance according to the Chraka samhita2

(5th

century), written by Charaka of Taxila University, during the end of Kratayuga3,

justice disappeared and selfish people began to accumulate more wealth. Gradually

they fell a prey, to evil passions and subsequently to illness. Sages pitied them and

assembled on the Himalayan slopes to find a remedy. They send sage Bharadvaja to

Lord Indra. Indra revealed to him the secrets of medicines. Bharadvaja later

transmitted it to their sages who developed their own samhitas3. But Sustruta (6

th to

5th

century B.C) of Varnasi University believed that Brahma created Ayurveda much

before he created man. Originally it had one lakh verses and one thousand chapters.

According to this interpretation, Brahma passed it to Prajapathi, he to Asvinis and

from him Indra got knowledge of Ayurveda, and finally Indra passed it on to

Divodosa (Dhanwanthari, 1920). The Kasyapa version takes another interpretation.

Vasistha and Atri learnt the secrets of Ayurveda from Indra. They passed it to their

sons and disciples. They received knowledge about all eight branches of Ayurveda.

2.1.2 Historical Overview

As it is not fair to trace the evolution of a civilization on the basis of

legendary myths, the modern researchers have started understanding history with the

help of material records. Their interpretations are more appealing. According to one

27

such finding, it is believed that Aryans who migrated from the Himalayan Ranges in

the northern and southern plains of river Ganges found the fertile land and moderate

climate good. They reduced their nomadic life and began to settle as an agricultural

society (Gowans, 2004). As civilization grew, a class of enthusiastic inquirers and

research scientists moved away from urban areas to rain forest areas to learn more

about plants, nature, animals and their relationship between human beings and

surroundings. These sages experimented and observed everything and these colonies

soon turned into universities of science and literature called Ashrams. They realised

specific role for all components of nature. Nature presents multifarious problems with

inherent solution. Pain and disease according to them occur due to inappropriate

imbalance with plants, animals, nature, fire and sun. At the same time healing and

happiness can be derived by using the same elements wisely. Every individual is

different, hence treatment is also different. Seemingly simple, this common sense

approach was systematically developed into comprehensive science of natural healing

called Ayurveda.

The roots of Ayurveda lie in ancient Hindu texts, called Vedas. The

history of Ayurveda lies spread over 50 centuries can be categorised into four

periods.

1. The Vedic Period

2. The Samhita Period

3. The Revival Period

4. The Present Period

Ayurveda is believed to be the Upaveda (meaning subdivision) of

Atharvaveda. There are about 160 hymns about medicines in the Atharvaveda. The

knowledge of life which was scattered in this book was well comprehended by the

28

great acharayas like Charaka, Susrutha and Vagbatha during the Samhita Period. In

the early days the science was learned in an individual manner in the traditional

gurukula system (from teacher to student and father to son). Each system had its own

techniques and formulae, which was unknown to the rest of the world. There was lot

of eminent vaidhyars (physicians) who were known in their family names. The

ashtavaidya4 tradition in Kerala is the best example. The only problem with this

tradition was that they never shared this traditional knowledge with anyone else. In

southern parts of India, Ayurvedic texts were written only in Sanskrit, the languages

of Gods. It was only studied by Brahmins (religious people who have the sole right

to pay offerings to Lord). They practiced it widely and jealously regarded it as their

family tradition. It was systematically well transmitted from father to son, and uncle

to nephew. Hence the learning and practicing of this noble healing system was

confined to this religion.

But with the starting of social reformation process and establishment

of Ayurvedic colleges this monopoly ended and Ayurveda got exposed. This

individualised education system was slowly institutionalised and history says that as

back as 2nd

century B.C., many students from different parts of the world used to

come to Nalanda University to learn Ayurveda. This finally led to modernisation and

decentralisation of Ayurveda (Trawck, 1993). Several Ayurvedic texts were

translated into Greek by Cnidos (300 B.C). The medical students from China, Tibet

and far Eastern countries traveled to India. They translated these writings to their

local languages. During Islamic period, Ayurvedic texts were translated into Persian

and Arabic. These processes though gradual and unsystematic finally led to the

widespread popularity of Ayurveda. Thus institutionalism augmented the

development of Ayurveda.

29

During this stage centers of knowledge were flourishing in Kasi and

Taxila under the guidance is of Buddhist. It was in this era that growth of Ayurveda

along with other sciences reached its acme. Ayurveda entered China, Ceylon

(present Srilanka) and South-East Asia along with Indian creeds. The knowledge that

liberated from the secretive Brahmins was exposed to the society, through open-

minded Buddhist monks. This became new upheaval and Ayurveda was considered

as an instrument of religious propaganda. When universities like Udantapuri and

Nalanda collapsed under heavy assault during the 10th

century, Ayurveda got

withered. The Mughal‟s destroyed many books and literature on Ayurveda and

subsequently it dwindled into a traditional family practice. Ayurveda could not

register any progress through observation, experimentation, discussion and

demonstration (Narayanan, 2002).

2.2 Ayurveda under British Rule

During the British rule the colonial needs of the people were largely,

met by Ayurveda, Unani Sidha & folk medicines. There was a proper interaction

between these systems of medicine. Even attempts to develop an integrated and

composite system were made during this period (Panikkar, 2002).

The introduction of western medicine was a major event during this

period. It was initially introduced for the benefit of Europeans in India and later

become a tool of the empire. The intelligent welcomed this with hesitation and

skepticism. Religious prejudices, unjustified rumors prevented the natives from

experimenting it. Raja Ram Mohan Roy was one of the pioneers who advocated and

preached the use of western medicine (Narayanan, 2003). But despite the initial

reservation the system was preferred and became attractive to the intelligentsia. It

was looked upon as a tool to embrace the modern and defy the old. Understanding

30

the possible threat, the British laid strong policy packages for the popularity of

western medicine.

During the course of the 19th

century the administrative and

institutional infrastructure necessary for the practice of western medicine was well

set by the state with the establishment of hospitals, dispensaries and colleges. This

led to the slow but steady marginalisation of the indigenous system. The colonial

authorities took it as administrative priority and made western medicine the officially

preferred system at the same time developed a hostile attitude towards all other

systems of healthcare.

The biggest challenge faced by western medicine was the existence of

irregularly qualified doctors who had received training in unorganised medical

institution or had no training at all. This endangered the hegemonic supremacy of

western medicine because its acceptance was based on its effectiveness and

effectiveness on the basis of its practice. Taking this aspect into consideration the

authorities established the Medical College in Mumbai in 1881 but came into force

only in 18875. Things changed thoroughly over the next thirty years with the passing

of Mumbai Medical Registration Act of 1912 which stressed that all medical

practitioners have to get registration. Initiated in the Province of Mumbai this was

later followed by other Presidencies also. This Act of 1912 indirectly became a big

blow to the indigenous medical practitioners who became irregularly unqualified

doctors. Thus they supplanted the indigenous system with western medicine and

excluded the indigenous system from the patronage of the state. Indigenous

practitioners were relegated to an interior status.

Despite the unlimited colonial patronage, the benefits of colonial

medicine were limited to a small section of population. The doctors were very few

31

and hospitals and dispensaries could hardly cater the needs of the population. There

were only 2272 registered medical practitioners and 571 medical centers in Madras

Presidency (Narayanan, 2002). On an average each medical institution catered to

40,000 people (Usman, 1923). Since most of the medical centers were located in

urban areas, colonial medical facilities were unavailable to rural folk. Again there

was glaring disparity within each province.

In contrast there was more than one practitioner of indigenous

medicine for every village (Adam, 1941). There were 21,000 practitioners in Madras

presidency. More significant was that, indigenous medical knowledge was not the

preserve of any particular caste and had a popular character, acceptance and easy

accessibility. In Kerala for example, the practice of Ayurveda was not limited to

Ashtavaidya family. A large number of Ayurvedic vaidhyars belonged to the lower

untouchables who formulated several medicines and used Malayalam as the medium

of instruction (Warrier, 1980). Sree Narayana Guru6, the social reformer was initially

accepted for his ability to cure diseases (Chandra, 1998). The knowledge of

Ayurveda at least in Kerala was not the monopoly of upper castes; it transcended

caste and religious barriers (Panikkar, 2002). This may be cause for the widespread

acceptance and growth of Ayurveda in the state even in the present days.

Hence it was known to the colonial masters that it is impossible to

wipe away the indigenous system. The committee on the Indigenous System of

Medicine found indigenous medicine catered the needs of 9/10th

of the population

who were not provided the official medical aid (Usman, 1923). Even in urban areas

where western medical centers existed, indigenous medicine continued to be in good

demand. On a comparison while Ayurvedic dispensaries treated 1,22,238 patients in

1921-22, the western medicine dispensaries attracted only 37,626 patients (Panikkar,

32

2002). Thus it may be interpreted that even during the days of glorified patronage of

western medicine; Ayurveda had enough space to operate, particularly in rural areas.

In spite of this, insecurity gripped the minds of the Ayurvedic practitioners, due to

the unequal treatment confirmed and due to the challenge caused by western

medicine. They were in the complex amalgam of the pride in the past, dissatisfaction

with present and apprehension for the future. The efforts to revitalise the indigenous

system during the late 19th

century and early 20th

century began from this

discontentment.

2.2.1 Stagnation Decline and Revitalisation of Ayurveda

The state of development of Ayurveda is clear from the preceding

section. Although Ayurveda was the janani (mother) of all medical knowledge, it got

into very difficult state. Antiquity however was not the sole criterion in assessing the

past; the emphasis was equally on the state of knowledge in the ancient texts.

Ayurveda had attained a high level of perfection in the past as evident from the

works of Charaka, Susruta and Vagbhata. But the causes of decline were more

internal in nature and partially exogenous.

2.2.2 Stagnation of Knowledge and Ignorance of Practitioners

However excellent were the classic texts of Ayurveda, the knowledge

contained in them had remained stagnant as there were no efforts to improve them

through experimentation and relate knowledge with new experience. Thus the main

drawback of the system was that its knowledge became outdated. Ayurvedic

treatment lost the touch of reality. Ayurveda failed to keep pace with times and

laboured within the parameters of knowledge developed in the long past. To add, it

was doubtful whether the contemporary practitioners imbibed this knowledge

sufficiently. The classic texts were not available, if available most practitioners did

33

not have the necessary language expertise to assimilate the contents. Easily

accessible texts were also not adequately made use of. Most of the practitioners

preferred the easier method of oral learning than the arduous task of reading the text.

As a result, by the end of the nineteenth century an overwhelming majority of

Ayurvedic practitioners were ignorant of their art. Their only aim was their

livelihood and in their hands the system lost its effectiveness and creditability.

2.2.3 Non-availability of Quality Medicine

The method adopted for preparing medicine was another major

weakness of the indigenous system. Medicines in prepared form were very few and

hence the patients had to prepare medicines as per the ingredients prescribed by the

physicians. What the patient prepared did not measure up to the prescription either in

content or in method (Varier, 2005). Hence a wide gap between what the physician

intended and what was actually administered by the patient occurred. As a result the

treatment turned out to be ineffective. The physician blamed patients and patients

blamed physicians. The net result or effect was the complete neglect of Ayurvedic

treatment and switching on to western medicine.

2.2.4 Loss of Political Power and Social Support

Apart from the internal causes some external factors also played a

considerable role in the revitalisation of Ayurveda. The impact of the hostile attitude

of the colonial state was the most figured external reason for the decline of

Ayurveda. Ayurveda was deprived of the state patronage and was not given a chance

to compete with the western medicine. The reason for the success of the western

medicine in India was undoubtedly the support of the government (Nair, 1981).

During this period the social support to the system was also limited. A major source

from which the system drew appreciation was the Indian ruling classes

34

(Dhanwantari, 1920). The Ayurveda family received rent free lands from the royal

families. The displacement of power from these royal families to the colonial rule led

to the total neglect of patronage. Again the educated class during this period

preferred the systematic and professionally organised western medicine. Thus the

indigenous system got marginalised both in terms of political patronage and social

support.

But the process of revitalisation of Ayurveda began at national level

with the upsurge of nationalistic feelings against the British rule. Ayurveda was

taken as a symbol of nationalism and earnest attempts began from different circles to

revamp the indigenous health care system. Two major hurdles ahead of this task of

revitalisation were stagnation of the knowledge and the lack of knowledge among

the practitioners. The former happened due to the non-availability of texts and their

use. Many did not even know that there were versions of Ayurvedic texts written in

vernacular languages. By the time the practitioners came to know of this, the works

were lost. Hence the process of revitalisation began with the dissemination of

knowledge available. There were serious efforts undertaken by many scholars to

collect books, publish and distribute it among practitioners. They organised meetings

and arranged formal and informal gatherings to share the wisdom. Under their

initiative the science of life received a new breath. The end of this process was

manufacturing at household level which later led to the large scale industrialisation

of Ayurveda in India.

2.3 International Overview of Ayurvedic Industry

International trade in herbal medicines began with the growing

dissatisfaction with the western medicine. It was in the form of herbal plants in the

early period and later to plant extracts (Chaudhury, 1991). During the past decade

35

the global trade for medicinal plants has increased from 379.9 to 583.6 million

tonnes in 2002. During 1991 the international exports in value terms was U.S $ 1135

million and it came down to U.S $1034 million in the year 2002. In case of imports

which were U.S $ 1153 million in 1991, value fell to U.S $ 1128 million in 2002.

Thus in terms of volume, the export and import of medicinal plants are increasing

with the value of medicinal plants traded falling. This implies falling average unit

price of the medicinal plants (Lewington, 1993). This is shown in the figures given

below.

Figure 2.1

Volume of Export and Import of Medicinal Plants in the World (in MT)

0

100

200

300

400

500

600

700

1995 2000 2001 2002

Year

Vo

lum

e o

f E

xp

ort

an

d I

mp

ort

of

Med

icin

al

Pla

nts

Export Import

Source: Trade in Medicinal Plants, Raw Materials, Tropical and Horticultural Products

Service, Commodities and Trade (COMTRADE), Division Economic and Social Department,

Food and Agriculture Organization of the United Nations, Various Estimates

36

When we consider the contribution of direction of trade in herbal

plants we find China and India are the main players in this trade. But the volume of

herbs traded has declined in both the nations. The volume of exports of developed

countries as a whole increased from 60.8 million tonnes to 132.3 million tonnes. The

major exports of medicinal plants come from developing countries whose share

increased substantially from 311.1 million tonnes in 1991 to 451 million tonnes in

2002.

Figure 2.2

Value of Export and Import of Medicinal Plants in the World (in US $)

0

500

1000

1500

2000

2500

3000

3500

1995 2000 2001 2002

Year

Valu

e o

f E

xp

ort

an

d I

mp

ort

of

Med

icin

al

Pla

nts

Export Import

Source: COMTRADE & FAO, Various Estimates.

37

Table 2.1

Export Volume of Medicinal Plants Trade by Different Countries

(in MT)

1991 1995 2000 2001 2002

World 371.9 463.1 529.1 541.4 583.6

Developed 60.8 108.8 127.2 120.3 132.3

Developing 311.1 355.1 401.9 421.1 451.4

China 99 142.5 186.4 169.2 150.3

India 37.8 37.6 47.8 49.1 45.8

Source: COMTRADE & FAO Estimates, Various Years

Fig. 2.3

Export Volume of Medicinal Plants by Different Countries in the World.

(in MT)

0

100

200

300

400

500

600

700

1991 1995 2000 2001 2002

Year

Ex

po

rt V

olu

me

of

Me

dic

ina

l P

lan

ts b

y

dif

fere

nt

co

un

trie

s

World Developed Developing China India

Source: COMTRADE & FAO, Estimates, 2002.

India‟s share in the global trade has remained rather inconsistent

with severe ups and downs. China‟s performance is rapidly falling in the past few

years.

38

Table 2.2

Export Value of Medicinal Plants Trade by Different Countries

(in million US $)

Source: COMTRADE & FAO, Estimates, 2002.

Figure 2.4

Export Value of Medicinal Plants by Different Countries

(in U.S $)

0

200

400

600

800

1000

1200

1400

1600

1800

1991 1995 2000 2001 2002

Year

Exp

ort

Valu

e o

f M

ed

icin

al

Pla

nts

by

dif

fere

nt

Co

un

trie

s

World Developed Developing China India

Source: COMTRADE & FAO, Estimates, 2002

The medicinal plants exported are not used for the production of

traditional medicines alone but also in production of natural products, paints etc. It is

to be noted here that the value of medicinal plants traded have come down recent

1991 1995 2000 2001 2002

World 1135.8 1525.1 1097.0 1016.2 1034.8

Developed 338.0 481.5 417.2 381.7 407.9

Developing 797.8 1043.6 679.8 634.5 627.0

China 208.3 415.4 216.5 199.7 215.3

India 52.8 65.7 79.5 78.6 68.7

39

times but the share of developed nations is increasing consistently because they

mainly deal with medicinal plant extracts. The global trade in medicinal plants is

dominated by a few countries. About 80 percent of the medicinal trade comes from

12 leading countries which are Asian and European countries (COMTRADE, 2007).

The Asian countries account for 41percent of imports and 48 percent of exports. One

third of the global imports come from Europe. China‟s share is three times more

than that of Hong Kong and four times the size of India and Mexico. It is to be noted

that although India has the third place in the total export in terms of quantity traded,

the value of her exports are much lower than that of USA. This may be due to poor

value addition. USA mainly imports plant raw materials and very little processed

plant products but exports chiefly processed plant products only (Lange, 2006). But

India has a special place among the nations in trade. There are 95 trading partners in

India‟s medicinal plant trade. The major export destinations are USA and Europe.

India imports mainly from neighboring countries like Nepal, Afghanistan etc. From

a brief account of the dimensions in trade of medicinal plants certain broad

conclusions can be drawn.

The exports of medicinal plants are dominated by developing countries

whereas developed countries are the chief importers.

There are only a few players in this trade. 80 percent of the trade is in the

hands of 12 countries.

Japan, USA, Republic of Korea, Germany, Japan and France are the main

consumer countries whereas China, India, Mexico, Bulgaria, Chile,

Egypt, Morocco and Albania are the chief suppliers of this commodity.

The bulk of the botanicals trades are in their wild origin and not in the

processed form.

40

Export of medicinal plants in their raw form fetches less value than in

processed form and extracts.

The increase in the demand for medicinal plants led to the growing

preference for any health supplement based on plant material (FRLHT, 1999). The

safety, efficacy and cost effectiveness of Ayurveda has been accepted globally.

While medicinal plants are being utilised in the preparation of Ayurvedic drugs,

there is a global trend of using herbal medicines as a part of a movement which asks

for the use of natural or green products. World demand for herbal products has been

growing steadily at a rate of 10 to 15 percent per annum (EXIM Bank, 2002). Due to

the unorganised nature of the market, lack of availability of authentic data, the

nature in which the Ayurvedic medicines are classified in the data list of

international trade makes it very difficult to reach a definite conclusion. However

what is seen is a growing demand for Ayurvedic medicines, treatments, and

massages. The domestic market in India for indigenous medicines is dominated by

Ayurveda with a share of 84 percent while that of Sidha and Unani comes to a

negligible extent. If we take a quick look of the major trading partners for

Ayurvedic medicines, it can be seen that European Union is the largest importer of

herbal medicines from India with 45 percent and followed by ASEAN and Japan

with 17 percent and 16 percent respectively (EXIM Bank, 2002).

41

Fig 2.5

Exports of Ayurvedic Medicines from India

45%

17%

16%

11%

4%

7%

European Union ASEAN Japan N.America Rest of Europe Others

Table 2.3

Major Export Destinations of Ayurveda from India (Regions)

(US$ million)

Importing

Country

1999-2000

2000-01

Growth (%)

World 77.72 126.94 63.33

America 24.69 40.41 63.67

Europe 21.85 36.80 68.42

Africa 5.25 6.41 22.10

Source: DGCIS, 2001.

It has to be understood that the export market of Ayurveda products

have been to developed countries especially America and Europe. The growth of

42

exports to these regions has been explained in the table 2.3. The table shows that

there has been a robust growth in all these regions with rapidly increasing

exports to the African regions.

Further insight to this table can be had if we analyse the exports from

India to different nations. It can be found from the table given below that there is

tremendous improvement in the exports from India to all eight destinations. In

value terms USA happens to be the largest importer of Ayurvedic medicines

from India. But when we consider the percentage of growth we find that India‟s

export to Germany has increased by 157 percent.

Table 2.4

Major Export Destinations of Ayurvedic Medicines from India

(Countries) (US$ million)

Importing Country 1999-2000 2000-01 Growth (%)

USA 21.41 35.71 66.79

Germany 3.12 8.04 157.69

Russia 3.84 5.79 50.78

UK 2.76 4.83 75.00

Taiwan 1.95 4.24 117.44

UAE 1.75 2.95 68.57

Hong Kong 0.89 2.87 222.47

Malaysia 1.26 2.25 78.57

Source: DGCIS, Ministry of Commerce and Industry

Compiled by CMIE, India Trades Database, 2001.

2.4 An Outline of Ayurvedic Industry in India

The industrialisation of Ayurvedic industry in the country began

much before the establishment of Ayurvedic industry in Kerala. At national level the

43

beginning was a part of the greater revolt against the British hegemony than the

development of indigenous health care system. In India, Chandra Kishore Sen in

Bengal opened a dispensary in 1828 in Calcutta for selling Ayurvedic medicines at a

cheaper rate. His firm C. K. Sen & Co. started large scale production in 1898

followed by N. N. Sen & Co. in 1884 (Leslie, 1976).

As in the case of any industry the Ayurvedic manufacturing units

were carried out at household level where the process of production was primitive.

The chief physician was the main producer and his family members joined together

to produce medicines. There are no instances of use of any kind of machines in the

process of manufacturing. Ayurvedic industry in the country, record a vivid picture

of how a prolonged history of standardisation got materialised and how the

professional transformation happened in our medical health system. This was

attributed by large scale negotiations within the system and outside the system. The

process started with educational reform in different parts of the country and lobbying

with the central and state governments to divert policy attention towards qualified

practitioners of the indigenous systems of medicines (Harilal, 2009). This necessarily

resulted in a strong pluralistic health service delivery system, where people have

better choice, but under the conditions of unequal power relations between systems

of medicine (Prasad, 2007). Along with this, was the steep increase in the price of

western medicine which encouraged people to try indigenous health system and its

resultant success made the manufacturing of Ayurvedic medicines more popular.

This soon emerged as a global trend and the preference towards plant medicine and

natural medicines bolstered. In the Indian context of medical pluralism, Ayurveda

has been seen as an indigenous counterpart to biomedicine, but in the global health

market, it is one of the many alternatives to orthodox medicine, namely biomedicine.

44

In fact, developments in Ayurveda during the past two centuries

through organised production of medicine, institutionalisation of education and

professionalisation of clinical practice have often been parallel to, or a response to

developments in biomedicine in India. But the growth of the two systems of health

care has no comparison. As mentioned in the earlier section the manufacturing in

Ayurveda has passed from small-scale physician outlet to petty/cottage production

and later to the industrial enterprise, emerging as a competing alternative to the

biopharmaceutical market. Earlier, in the initial half of the 19th century, a number of

households produced and distributed Ayurvedic drugs. But the production and

distribution was not based on any pricing mechanism. This means that while raw

herbal, metal and mineral products were traded and marketed in a big way, ready-

made medicines were never considered as a “commodity” to be marketed for money

(Harilal, 2009).

Commercialisation was never thought of in those days and the

approach of the vaidhyars was holistic. The production of medicine was concentrated

in and around the physician‟s residence or locality and the service and production

costs were not clearly distinguished. Various reasons, including the inability of the

modern system to cater to the healthcare needs of a large number of villages and the

acceptance for the vaidhyars, helped the indigenous systems to remain significant

throughout the period. The transformation from household system to bulk production

began when the vaidhyars responded generously to the spread of epidemics like

cholera and small pox in the mid 19th

century (Varier, 2002; Bhattacharya, 2001).

The first initiatives in large-scale medicinal production were seen in the late 19th

century in Bengal by Kavirajas (Gupta, 1976; Bala, 1991; Kumar, 2001) and in

Kerala by P S Varier (Varier, 2002) and later, spread to different parts of the country.

45

The vaidya community launched mechanisation to make the drug more edible to the

users, to improve the shelf life and all the more too increase creditability by

providing information regarding the ingredients used in the formulation in the outer

label of the drug. In the production process, this was accompanied by centralised

manufacturing systems and some amount of mechanisation. By the end of the 20th

century, the turnover of the industry was more than government funding for

Ayurvedic and Unani education, treatment and research (Bode, 2004).

We may delineate a second phase of commercialisation of the

Ayurvedic medical sector in the end of the 20th century, marked by a move from

bulk to mass industrialised production. In this later phase, the process was not

necessarily under the control of the vaidhyars, but with the manufacturing firms.

This phase was governed by the dynamics of the market and state regulations on

drug development, and at this juncture, clinical testing and usage of scientific

methods became a necessity. Today there are hyper modern factories of Ayurvedic

medicine and the production process is completely mechanised, where the phases of

traditional medicine production are no longer visible, though this is not true in the

case of numerous small manufacturers. The revitalisation of Ayurveda revolved

around three issues; the retrieval, systematization and dissemination of knowledge;

the creation of institutional facilities for training physicians and the preparation and

distribution of medicines (Panikkar, 2002). Understanding the nature of growth and

the potentials for growth, the Government of India has incorporated several

initiatives to redirect the growth of the industry in the right direction.

To mention, there were three agents involved in the process of

industrialisation of Ayurveda in India- companies who aimed in reviving the sector,

non-government institutions who attempted a revitalisation and the government that

46

eagerly attempted to reposition the sector (Banerjee, 2002).The legal foundation for

this was laid by the Bhore Committee in 1943. The committee was appointed by the

Colonial Government to make recommendation on the health condition of the

country and reported that it could not value the indigenous system. This remark

which became hostile to the growth of Ayurveda was widely criticized by the All

India Medical Conference held at Mumbai in 1946.

The meeting of health ministers recommended the application and

development of scientific methods to value Ayurveda, starting Ayurvedic colleges

and appointing Ayurvedic physicians in states health sector. Soon after independence

the Government of India appointed the Chopra Committee on Indigenous System of

Medicine in 1948 which became a land mark. It accepted all the above proposals and

recommended the establishment of the Drugs Enquiry Committee in 1946.

The Drugs Enquiry Committee recommended mass production. But the

situation prevailing was not indicative for the industry as such. The manufacturers

were aware of only small scale production laid down in the classical texts. The

present system did not link the possibility of linking technology with production.

The recommendations of the committee were primarily focused on the

commercialisation, standardisation of the industry. It was well realised that mass

production was possible only through mechanisation. The mechanised production

was resorted by majority of the companies and this prevented the preparation of

medicines by hand by vaidhyars. This was a serious handicap for the sector. But the

lack of standardisation was still a problem. Different texts followed different

methods and included different ingredients.

47

Table 2.5

Milestones in the Industrialisation of Ayurveda in India

Institution/ Attempt Year of

Establishment Impact

C.K SEN‟S

DISPENSARY, BENGAL 1828

first production and sale of

Ayurvedic medicines at a reduced

rate.

AYURVEDA MEDICAL

COLLEGE 1887

first Institutional

teaching of Ayurveda

BOMBAY MEDICAL

REGISTRATION

ACT

1912

all medical practitioners

needed registration

BHORE COMMITTEE 1943

legal foundation for

production of Ayurvedic

medicines

DRUGS ENQUIRY

COMMITTEE 1946

checking quality of drugs

and authenticity of

formulations

CHOPRA COMMITTEE 1948

guidelines for mass

production of Ayurvedic

medicines

AYURVEDIC

FORMULATORY INDIA 1978

framing an official

common formulation

for Ayurvedic

medicines in India

DEPARTMENT OF

INDIAN SYSTEM OF

MEDICINE AND

HOMEOPATHY

(ISM&H)

1995

Department for the

special care and

development of ISM

&H

NATIONAL

MEDICINAL PLANT

BOARD

2000 Conservation, cultivation of

medicinal plants

GOOD

MANUFCTURING

PRACTICE ( GMP)

2000

Guidelines for

requirements for

infrastructure,

quality control,

manpower and

absence of

contamination

TRADITIONAL

KNOWLEDGE DIGITAL

LIBRARY7

2002

For safeguarding the

patent and treasuring our

knowledge

Source: Compiled from 1. Narayanan (2002) 2. ISM & H (2001).

3. Report of the Expert Committee on Ayurveda, 1963

48

Hence experts in the field joined together to the launch of the

Ayurvedic Formulatory of India in 1978. The Formulatory laid down following

guidelines

1. preparation of official formulary

2. providing standards for drugs

3. laying down tests for identity

4. ensuring uniformity in physical properties and active constituents and

providing all information regarding the methods of preparation dosage

etc.

Based on these governmental efforts, several Ayurvedic medicine

manufacturing units were established in the country. many leading manufacturers

of the present day had already established their strength in market.

Dabur India limited is the largest Ayurvedic supplier and the fourth

largest fast moving consumer goods industry in India. It was established in 1884

with its headquarters at Utter Pradesh and had a turnover of more than 650 million

dollars in 2003. 15 percent of their sales volume comes from pharmaceuticals and

85 percent from cosmetic and food items. The Ayurvedic section of Dabur has 260

medicines for common ailments like cold and cough to paralysis. These materials

constitute 7 percent of the total revenue of Dabur. Other popular branded items

include Dabur Chyawanaprash, Dabur lal dandmanjan, Chewable Hajmola, Dabur

hair oil, Vatika Shampoo etc.

Sri Baidyanath Ayurvedic Bhawan Ltd (henceforth Baidyanath) was

founded in 1917 at Calcutta and specialises in Ayurvedic formulations although it

has entered into FMCG products and cosmetic products such as hair care recently.

Baidyanath had a sales turnover of 350 million dollars in 2003. They produce over

49

700 Ayurvedic products, at ten manufacturing centers and employees 1600

labourers. Most popular internationally acclaimed product is Shikkakai Shampoo,

herbal tea, massage oils and Chyawanaprash.

Zandu Pharmaceutical Works was incorporated in Bombay in 1919.

The primary focus of the company is Ayurvedic products. However, today Zandu

has a chemical division and cosmetics division. Its total sales volume is about 45

million dollars. One of its current projects is to develop a dopamine drug from a

plant extract, applying for new drug status in the U.S.

The Himalaya Drug Company was established in 1934 in Bangalore.

It currently has a business level of about 500 million dollars and has a U.S. distribution

division (Himalaya USA). It is known in the U.S. for the product Liv-52, marketed as

a liver protector and therapy for liver diseases like viral hepatitis, the product was first

marketed in India in 1955.

Charak Pharmaceuticals was founded in 1947, and currently has

three distribution centers in India; it produces liquids, tablets, and veterinary

supplies. It has gained a large advantage with its new product Evanova, a preparation

containing 33 herbs and minerals and non-hormonal active ingredients used as a

menopause treatment. The Emami Group, founded in 1974, provides a diverse range

of products, doing 110 million dollars of business annually, though only a portion is

involved with Ayurvedic products, through its Himani line; the company is mainly

involved with toiletries and cosmetics, but also provides Chyawanprash and other

health products.

50

Table 2.6

Ayurvedic Manufacturers in India on the Basis of Turnover

Number of

Units

Annual Turnover

10 large Units >12.5 $ Million ( Rs. 50 crores)

25 Medium Units

Between $1.23 Million and $12.5

Million

965 small Units $ 250,000and $ 125 Million

6000 tiny units < $ 250,000 Million ( Rs. 1 crore)

Source: Ministry of Health and Family Welfare, Government of India, 2001.

As per the records of the Indian System of Medicine and

Homeopathy(ISM&H) there are 7621 registered manufacturing units in India. The

number of unregistered manufacturers will be more than half the number of the

registered units. The state wise data on the number of manufacturing units is given

in the Appendix. Uttar Pradesh has the largest number of manufacturing units in

India followed by Kerala. Kerala accounts to16 percent of the total units in India.

Among the 7621 Ayurvedic manufacturers in India there are 15 firms which have a

turnover of more than Rs.50 crores. Around 45 companies have an annual turnover

between Rs. 5 crore and Rs. 50 crores and while remaining companies have a turn

over of less than Rs. 5 crore (EXIM Bank, 2002) Nonetheless the Ayurveda industry

is highly unorganised and mostly in small scale sector. The global demand for herbal

medicines is growing steadily at a rate of 10 percent to 15 percent in the last decade

(WHO, 2002). The revival may be attributed to the belief that green medicine is safe

and more dependable than the allopathic drug which has lot of side effects. As per

the WHO records, the 80 percent of the world population depend directly or

indirectly on herbal medicines. The herbal market includes medicines, food

51

supplements, and beauty care products which has a market of US $ 62 billion. Out of

this the market for herbal medicine is alone reported to be US$ 5 billion (EXIM

Bank, 2002). In India there is inadequate information regarding the total market for

Ayurvedic drugs. According to one such estimate, India‟s share is less than two

percent i.e., about Rs 2000-Rs 2500 crores. Out of this, the share of Kerala is Rs.

230 crores (Harilal, 2002). Of late the recent discussions with industry related

professionals revealed that the share of Kerala is around Rs. 400 crores (Survey

Data, 2008).

Endnotes

1. Basic text on Ayurvedic drug formulation

2. Charaka, Sustruta, Vagbata and Kasyapa –four versatile sages and masters of Ayurveda

3. Samhita meaning a book.

4. Ashta meaning eight, Ashtavaidya form eight nambudiri families who were gifted with

the knowledge of Ayurvda. Only they had the right to practice Ayurveda.

5. First Ayurveda course was started in Government Sanskrit College, Calcutta in 1827,

and the British discontinued it after six years)

6. Sree Narayana Guru, the most popular social reformer who preached that man has only

one caste and one religion and that whatever be the caste, man should be good.

7. The basic idea of TKDL is to make all documented information on Ayurveda available to

patent examiners so as to prevent grant of patents on non-original inventions and to

retrieve about 35,000 formulations of Ayurveda, 30 Ayurvedic experts and scientists

and five patent examiners have provided the expertise for setting up of the facility and

AYUSH works as a nodal agency.