Ayush Emerges as One of India’s Fastest-Growing Service Sectors, RIS Study Estimates US$36.92 Billion Economy

1. At a Glance

• The Research and Information System for Developing Countries (RIS) has made the first estimate of the size of the Ayush services economy: US$36.92 billion in FY2024-25, growing at a 16.91% CAGR since FY2022-23. [1]
• The estimate comes from a nationally scaled, establishment-level survey of 15,914 establishments covering all six Ayush systems. It is described as the first measurement of its kind. [1]
• The sector directly supports 1.76 million livelihoods. Women make up 43% of the workforce. [1]
• The study projects the sector could reach US$216–318 billion by 2047. This ties it to Viksit Bharat @2047, to Medical Value Travel (MVT) and Heal in India, and to India's soft power in traditional medicine. [1][6]

2. Why in the News

• The report was released on 23 September 2026 during the 11th Ayurveda Day celebrations in Nagpur (Maharashtra). [1][2]
• The theme of the 11th Ayurveda Day was "Ayurveda for a Healthier Tomorrow". [2]
• PIB published the findings on 30 September 2026. [1]

3. Background & Evolution

• AYUSH stands for Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy. [6]
• Ayurveda Day used to be marked on Dhanvantari Jayanti (Dhanteras). The PM launched Ministry of Ayush projects on the 9th Ayurveda Day, which fell on Dhanvantari Jayanti. [5]
• From 2025, Ayurveda Day is observed on a fixed date, 23 September, every year. [3]
• 10th Ayurveda Day (2025): held at AIIA Goa with the theme "Ayurveda for People and Planet". [4]
• 25 March 2022: WHO set up the Global Traditional Medicine Centre (GTMC) in India, with foundational support from the Government of India. [8][10]
• 27 July 2023: a dedicated Ayush Visa was introduced. [6][7]
• 31 July 2024: India committed US$85 million to WHO GTMC. [9]
• 2024 and May 2025: Ayush MVT Summits were held in Mumbai (2024) and Chennai (May 2025). [6]
• Union Budget 2026-27: proposed 5 Regional Medical Hubs (each with Ayush centres), 3 new All India Institutes of Ayurveda, and an upgrade of WHO GTMC Jamnagar. [6]
• September 2026: the RIS Ayush services study (this topic). [1]

4. Core Static Facts

Item	Fact
Study by	RIS (Research and Information System for Developing Countries) [1]
Nodal ministry for Ayush	Ministry of Ayush; MoS (IC): Prataprao Jadhav, who is also MoS for Health & FW; Secretary: Vaidya Rajesh Kotecha [1]
RIS Director General	Prof. Sachin Kumar Sharma [1]
Sector size FY25	US$36.92 bn [1]
CAGR (FY23 to FY25)	16.91% [1]
Sample	15,914 establishments, 6 Ayush systems [1]
Largest segments	Standalone clinics US$16.21 bn; day-care centres US$10.13 bn; together more than 71% of revenue [1]
Largest system	Ayurveda: US$17.73 bn (about 48%) [1]
Wellness segment	21.29% CAGR; yoga centre revenue grew about 75% in two years [1]
Employment	1.76 million livelihoods, of which over 1 million are in local/standalone clinics [1]
Women's share of workforce	Overall 43%; wellness (spas/resorts) over 60%; educational institutions 58%; day-care 57%; hospitals 53% [1]
MVT revenue FY25	US$1.77 bn. International patients are about 5% of volume but 15–25% of hospital-segment revenue [1]
Average length of stay (Panchakarma, residential Yoga)	5–11 days [1]
Odds of attracting international patients	A functional website gives 3.6× higher odds; NABH/ISO accreditation roughly doubles the odds [1]
2047 projection	US$216–318 bn [1]
Four strategic pillars	(i) Knowledge value chain; (ii) Enterprise and institutional capabilities; (iii) Global competitiveness and MVT; (iv) Innovation through digital technology and AI [1]
Ayush Visa	AY visa for patients and AY-2 for attendants. Requires an invitation letter from an accredited Ayush institution. Launched in line with Heal in India [7]
Ayush Visas issued (to 4 Dec 2024)	123 regular, 221 e-Ayush, 17 e-Ayush Attendant [11]
WHO GTMC	A WHO HQ department outposted to Jamnagar, Gujarat. India gave 35 acres and has committed about US$250 mn [10]

5. Multi-Dimensional Analysis

Economic

• A CAGR of about 17% puts Ayush among the fastest-growing service segments. Reaching the 2047 range means growing about 5.9–8.6 times from FY25. [1]
• Revenue is concentrated in clinics and day-care centres (over 71%), so the sector is mostly small, local and standalone establishments. That points to fragmentation and a need to formalise. [1]
• Ayush feeds a wider MVT market. Globally, MVT was worth US$115.6 bn in 2022 and is projected at US$286.1 bn by 2030 (about 10.8% CAGR). India's medical tourism market is estimated at US$8.7 bn in 2025. [6]

Social / Gender

• Women are 43% of the workforce and over 50% in several organised segments. The sector is a channel for female employment in services. [1]
• Demand is shifting towards preventive and holistic care, as the 21.29% wellness CAGR shows. This fits the rising burden of lifestyle diseases. [1][6]

Geopolitical / Soft Power

• India's traditional medicine diplomacy includes the WHO GTMC at Jamnagar (India is lead investor, about US$250 mn), the Ayush Visa, and the MVT summits. [6][7][10]
• According to the Medical Tourism Index 2020-21, India ranks 10th of 46 medical tourism destinations and 12th among the top 20 wellness tourism markets. [6]

Governance / Quality

• Accreditation (NABH, ISO) and digital visibility measurably improve the odds of attracting international patients. [1]
• BIS has adopted ISO 22525, a standard for medical wellness tourism services. [6]
• Under IRDAI health insurance regulations, insurers may cover Ayush treatment. About 27 insurers offer more than 140 products that cover Ayush. [6]

Scientific / Technological

• The study's fourth pillar is digital technology and AI. It also stresses digital health records and responsible adoption of emerging technology. [1]

Administrative

• The study names the bottlenecks as quality systems, skills, digital capability and international market access. [1]
• Skilling is being addressed through an Ayush sub-council under the Health Sector Skill Council. [6]
• At the policy level, the National Medical & Wellness Tourism Promotion Board (under the Ministry of Tourism roadmap) coordinates across ministries. [6]

6. Recent Developments (last 12–18 months)

• 23 September 2025: 10th Ayurveda Day at AIIA Goa, theme "Ayurveda for People and Planet". It was the first observance on the fixed 23 September date. [3][4]
• May 2025: Ayush MVT Summit in Chennai. [6]
• Union Budget 2026-27: 5 Regional Medical Hubs with Ayush centres and MVT facilitation centres; 3 new AIIAs; GTMC Jamnagar upgrade. [6]
• 2 May 2026: PIB backgrounder on Medical and Wellness Tourism. In 2025, 507,244 foreign nationals arrived for medical treatment, about 5.5% of FTAs. [6]
• 23 September 2026: 11th Ayurveda Day in Nagpur; RIS Ayush services report released. [1][2]

7. Prelims Hooks

• The RIS study put the Ayush services economy at US$36.92 bn in FY2024-25. [1]
• The sector's CAGR since FY2022-23 was 16.91%. [1]
• The survey covered 15,914 establishments across six Ayush systems. [1]
• Ayurveda is the largest system at US$17.73 bn (about 48%). [1]
• Standalone clinics are the largest segment at US$16.21 bn. [1]
• The Ayush-based wellness segment has a CAGR of 21.29%. [1]
• The sector supports 1.76 million direct livelihoods, with 43% women. [1]
• Ayush MVT revenue in FY25 was US$1.77 bn. [1]
• The 2047 projection is US$216–318 bn. [1]
• The report was released at the 11th Ayurveda Day in Nagpur under the theme "Ayurveda for a Healthier Tomorrow". [1][2]
• Ayurveda Day has been fixed on 23 September from 2025; it was earlier tied to Dhanteras. [3][5]
• The Ayush Visa was introduced on 27 July 2023; the codes are AY (patient) and AY-2 (attendant). [6][7]
• WHO GTMC is at Jamnagar, Gujarat and was established in 2022. [8][10]
• BIS has adopted ISO 22525 for medical wellness tourism. [6]

8. What the US$36.92 bn Number Can and Cannot Tell You

• The growth rate is measured over only two years
• The 16.91% CAGR (compound annual growth rate, the average yearly growth) covers only FY23 to FY25 [1].
• This is the first survey of its kind, so there is no older series to compare it with [1].

• The 2047 range of US$216–318 bn assumes fast growth for another 22 years, based on a two-year trend. Treat it as a possibility, not a forecast.

• This is revenue, not the sector's share of GDP

• The study reports revenue (the money establishments take in), segment by segment [1].

• Revenue is not value added (the part that counts towards GDP). So do not write "Ayush is X% of GDP" based on this number.

• Ayush is still mostly a domestic business

• Ayush MVT (Medical Value Travel, meaning foreigners who come to India for treatment) earned US$1.77 bn. That is under 5% of the US$36.92 bn total [1].
• The large foreign share, 15–25% of revenue, applies only to the hospital segment [1].

• The soft-power story rests on a small base. Domestic demand drives the sector.

• The Ayush Visa is hardly used so far

• Up to 4 December 2024, only 361 Ayush visas had been issued: 123 regular, 221 e-Ayush and 17 e-Ayush Attendant [11].
• In 2025, 507,244 foreigners came to India for medical treatment [6].
• The years differ and not every medical visitor wants Ayush care. Even so, very few Ayush patients are using the dedicated visa.

9. Why Growth Depends on Proving Safety and Results

• Rules on false advertising claims are stuck in court
• Rule 170 of the Drugs Rules, 1945 was added in 2018. It controls misleading advertisements for Ayurvedic, Siddha and Unani medicines [12].
• The government then moved to remove the rule. On 27 August 2024, the Supreme Court stayed that removal. The rule is now subjudice (pending before the court) [12].

• While the case is pending, the legal limit on exaggerated health claims remains unsettled.

• The system that watches for harm can report problems but cannot punish

• Pharmacovigilance means tracking harmful side effects of medicines after people start using them.
• The Ayush pharmacovigilance network has 1 national centre, 5 intermediary centres and 97 peripheral centres [13].

• These centres report misleading advertisements to State Regulatory Authorities. Action against the advertiser depends on the state [13].

• Parliament's Health Committee flagged unsafe medicines

• The Standing Committee on Health reviewed the National Ayush Mission in February 2024. It raised concern about high metal content found in some Ayush medicines [15].

• It asked for post-marketing surveillance (checking a medicine's safety after it goes on sale), a system to report side effects, and standards that match international benchmarks [15].

• Why this limits the market

• Foreign patients and insurers pay for results they can trust.
• The study itself shows that NABH/ISO accreditation roughly doubles the odds of attracting international patients [1].
• WHO's Traditional Medicine Strategy 2025–2034 names the same obstacles: weak research methods for traditional medicine, and different safety and quality rules in each country [14].
• Without solid evidence, the MVT and export side of the 2047 target will struggle to grow.

10. Private Clinics Are Booming While Public Ayush Projects Lag

• Most of the growth comes from the private market
• Standalone clinics and day-care centres earn more than 71% of the sector's revenue [1].
• Yoga centre revenue grew about 75% in two years [1].

• Much of this is paid for by people themselves. Those who cannot pay get little from this growth.

• The public delivery arm, the National Ayush Mission (NAM), is behind schedule

• The Standing Committee found that over 69% of integrated Ayush hospitals were still under construction [15].
• Only 65% of the planned wellness centres had been set up [15].
• In 2022-23, only 85% of the funds released at the revised stage were spent [15].

• The Committee blamed late release of funds, overlapping roles between agencies, and late utilisation certificates (proof that the money was spent) [15].

• What this means

• The headline number measures a market that is growing. It does not show that more people can get affordable Ayush care.
• In GS-II answers, keep these two points separate.

11. The Strongest Objection: Promoting Care Before Proving It

• The objection
• The state is promoting Ayush through visas, MVT summits and 2047 targets before the science is settled.
• Metal content in some medicines and misleading advertisements are on record [12][15].

• Selling unproven treatment abroad could hurt patients and damage India's reputation.

• What the objection gets right

• For medicines and cure claims, it is a fair point. Parliament's own committee asked for post-marketing surveillance and international standards first [15].

• The Rule 170 case shows that controls on false claims are still unsettled [12].

• Where it goes too far

• Much of what the study counts is services such as yoga, wellness centres and education, not only medicines [1].
• These carry lower risk than drugs do.

• WHO does not reject traditional medicine. Its 2025–2034 strategy aims to bring safe and effective traditional medicine into health systems, based on evidence and regulation [14].

• A balanced answer: promote the services, but let evidence and regulation decide what can be claimed and sold.

12. Who Should Do What Next

• Ministry of Ayush: make research a formal part of the National Ayush Mission
• The Standing Committee asked for R&D to be added as a Mission component, with flexible funds so states can pay for research [15].
• It also suggested using patient records from local Ayush centres for large epidemiological studies (studies of disease patterns across big populations) [15].

• This builds the evidence that foreign patients and insurers want.

• Ministry of Ayush and State Regulatory Authorities: act on unsafe medicines after they reach the market

• Set up post-marketing surveillance and side-effect reporting, as the Committee recommended [15].

• Link the pharmacovigilance network's reports on misleading advertisements to action by state regulators on time [13].

• Ministry of Ayush: help small clinics get accredited

• Standalone clinics earn the most revenue, but they are small and scattered [1].
• A functional website (3.6× the odds) and NABH/ISO accreditation (about 2× the odds) are the levers the study found [1].

• Support aimed at small clinics would spread these gains beyond large hospitals.

• Ministry of Ayush and WHO GTMC: use the WHO strategy as the framework

• The WHO strategy's four objectives are evidence, regulation, integration into health systems, and wider value to society [14].

• Matching India's own plans to these objectives would make Indian Ayush standards easier for other countries to accept.

• MHA and MEA: find out why so few people use the Ayush Visa

• Only 361 Ayush visas were issued up to December 2024 [11], against more than half a million medical arrivals in 2025 [6].
• The visa needs an invitation from an accredited Ayush institution [7]. There are few such institutions, so this may be the bottleneck.

13. Anchors for Answers

• Data: US$36.92 bn Ayush services revenue in FY25, 16.91% CAGR over FY23–FY25; the first estimate of its kind [1]
• Data: Ayush MVT earned US$1.77 bn, under 5% of sector revenue [1]
• Data: 361 Ayush visas issued up to 4 Dec 2024, against 507,244 medical-purpose foreign arrivals in 2025 [11][6]
• Data: Over 69% of integrated Ayush hospitals under construction; 65% of wellness centres set up (NAM review) [15]
• Report/Committee: Standing Committee on Health & Family Welfare, Review of National Ayush Mission (9 Feb 2024) [15]
• Report/Committee: WHO Traditional Medicine Strategy 2025–2034, adopted by the 78th World Health Assembly, May 2025 [14]
• Law/Case: Rule 170, Drugs Rules, 1945 (misleading ASU drug advertisements); Supreme Court stayed its removal on 27 Aug 2024 [12]
• Law/Case: Rule 158B, Drugs Rules, 1945: proof of safety and effectiveness needed for an ASU drug licence [12]
• Scheme: National Ayush Mission: public Ayush hospitals and wellness centres, lagging on construction [15]
• Scheme: AOGUSY pharmacovigilance programme: 97 peripheral centres monitor ASU&H drugs and advertisements [13]

14. Mains Relevance

• GS-III: Indian economy (growth, employment, services sector); Inclusive growth.
• GS-II: Issues relating to development and management of Health; Government policies and interventions.
• GS-I: Indian culture (traditional knowledge systems). GS-III also covers S&T and IPR aspects of traditional knowledge.
• Question stems: 1. The Ayush sector is no longer a peripheral cultural inheritance but a high-growth services economy. Examine in light of recent estimates, and discuss the constraints to realising its 2047 potential. (15 marks) 2. Discuss the role of Ayush-based Medical Value Travel in positioning India as a global wellness hub. What quality and regulatory reforms are needed? (10 marks) 3. Evaluate the gender and employment dimensions of India's Ayush services sector. (10 marks)

15. Related Topics to Study Next

• WHO Global Traditional Medicine Centre, Jamnagar: India's institutional anchor for traditional medicine diplomacy. [8][10]
• Heal in India / National Strategy for Medical & Wellness Tourism: the policy framework for Ayush MVT. [6]
• Ayush Visa and e-Medical Visa regime: the facilitation tools behind MVT. [6][7]
• Regional Medical Hubs (Budget 2026-27): will include Ayush centres. [6]
• NABH accreditation and ISO 22525: the quality levers the study identified. [1][6]
• IRDAI coverage of Ayush treatment: connects Ayush with health financing. [6]
• Viksit Bharat @2047: the benchmark for the 2047 projection. [1]
• Traditional Knowledge Digital Library and GI/IPR on traditional knowledge: protects the "knowledge value chain" pillar. I did not verify this in whitelisted sources this session.

16. Common Errors / Trap Areas

• Services vs. total Ayush market. US$36.92 bn is the services economy: clinics, hospitals, wellness and education. It does not cover Ayush manufacturing or products. [1]
• Who did the study. It was RIS, not NITI Aayog, the Ministry of Commerce or the Ministry of Ayush. The report was released at a Ministry of Ayush event. [1]
• Base years. The CAGR (16.91%) is measured from FY23 to FY25. The wellness CAGR (21.29%) is a separate figure, and the 75% yoga growth is over two years, not per year. [1]
• Ayurveda Day date. It is now fixed on 23 September (from 2025), not Dhanteras. Also note: Nagpur hosted the 11th edition and Goa the 10th. [2][3][4]
• Visa codes. AY is for the patient and AY-2 for the attendant. Don't confuse these with the e-Medical and e-Medical Attendant visas. [6][7]
• MVT share. International patients are about 5% of patients but 15–25% of hospital-segment revenue, not of total sector revenue. [1]