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 Ayurveda 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.

NATURE OF THE AYURVEDIC INDUSTRY

17

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

Dabur

Baidyanath

18

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

1. 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.

2. 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

3. 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

4. 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.

5. 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.

6. 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

7. 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

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

25

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

6

Mar.2007 Mar.2008 Percentag

e

CAG

R

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

Countries

3011.04 4167.82 3691.12 11.324 10.72

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

38

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