India’s AYUSH and herbal product export sector faces a structural bottleneck, as over 80% of its total export value relies on just two commodities: Psyllium Husk and Ayurvedic medicaments. While the sector shows consistent growth, experts from the National Institute of Pharmaceutical Education and Research (NIPER) warn that heavy reliance on a narrow product range and limited market destinations poses significant risks to long-term trade stability.
Why Does India’s Export Basket Face Concentration Risk?
The export basket is defined by an extreme concentration of value in two Harmonized System (HS) codes. According to research by Dr. Anil Kumar Angrish and Monika at NIPER S.A.S. Nagar, Psyllium Husk (HS 12119032) alone represents 55.47% of total exports, while Ayurvedic medicaments (HS 30049011) account for an additional 27.30%.
This means that nearly 83% of the sector’s performance hinges on these two items. When demand for these specific goods shifts in major markets like the United States or China, the total export value for the entire AYUSH sector fluctuates sharply. Relying on such a small segment leaves the industry vulnerable to supply chain disruptions or sudden regulatory changes in destination countries.
Did you know?
India classifies its AYUSH exports across 43 distinct HS codes, yet only eight of these are explicitly "system-designated" to specific traditional medicine schools like Ayurveda, Unani, Siddha, and Homoeopathy.
How Do Different AYUSH Systems Perform Internationally?
Within the "system-designated" category, the Ayurvedic system remains the clear leader, accounting for 97.97% of medicament exports. Data from 2020–2026 shows that Ayurvedic medicament exports reached a peak of ₹1,662.89 crore in the 2025–26 fiscal year.
In contrast, other systems struggle to gain significant international traction:
- Homoeopathic exports: Peaked at ₹24.79 crore in 2021–22 but have since declined to ₹13.96 crore as of 2025–26.
- Unani exports: Showed a volatile path, growing to ₹9.77 crore in 2022–23 before softening to ₹8.45 crore by 2025–26.
- Siddha exports: Remain the smallest segment, with values dropping to ₹1.51 crore in 2024–25 before a modest recovery to ₹3.43 crore.
The data suggests that while Ayurveda has successfully scaled, the other three traditional systems remain under-leveraged in global markets.
Where Are Indian Herbal Products Finding New Markets?
Exporters are seeing fresh traction in non-traditional markets, including South Korea, Australia, Vietnam, and Kenya. This diversification is critical because, as NIPER researchers point out, demand can shift rapidly.
For example, imports from China dropped by 74.4% from their 2021–22 peak, and U.S. imports saw an abrupt 21.2% decline in 2025–26. By monitoring these destination-specific shifts, exporters can better manage their inventory and marketing strategies. Germany currently leads as the primary destination for Psyllium Seed, accounting for over 36% of the top-10 export value for that specific product.
Pro Tips for Exporters
- Monitor Trade Data: Use granular HS code tracking to identify early warning signs of market saturation.
- Diversify Destinations: Do not rely on a single country for a specific product; the 21% drop in U.S. demand serves as a reminder of market volatility.
- Invest in Branding: As Ayurvedic products dominate the medicament space, smaller systems like Siddha and Unani may require targeted international awareness campaigns to grow their export share.
Frequently Asked Questions
What does the term AYUSH stand for?
AYUSH is an acronym for Ayurveda, Yoga and Naturopathy, Unani, Siddha, Homoeopathy, and the recently included Sowa-Rigpa.
Why is the export basket considered "concentrated"?
It is concentrated because 82.77% of the total export value is derived from just two HS codes: Psyllium Husk and Ayurvedic medicaments.
What is the role of HS codes in this sector?
HS codes, or Harmonized System codes, are the standardized numerical method of classifying traded products. Indian customs uses these to track the export of botanical raw materials and finished traditional medicine formulations.
Are exports of Homoeopathic medicine increasing?
No. According to NIPER data, Homoeopathic exports peaked in 2021–22 and have faced a consecutive decline through 2025–26.
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