Ayush services economy hits $36.92 bn in FY25, could reach $318 bn by 2047
Synopsis
Key Takeaways
India's Ayush services sector contributed an estimated $36.92 billion to the national economy in FY25 and could scale to between $216 billion and $318 billion by 2047, according to a government-commissioned study released on 30 September 2026. The findings were unveiled during the 11th Ayurveda Day celebrations in Nagpur, with the Ministry of Ayush citing research by the Research and Information System for Developing Countries (RIS).
Key Findings of the RIS Study
The sector has recorded a compound annual growth rate of 16.91 per cent since FY23, supports approximately 1.76 million livelihoods, and generated $1.77 billion in Medical Value Travel revenue, according to the report. Secretary, Ministry of Ayush, Vaidya Rajesh Kotecha noted that this marks the first time the economic contribution of Ayush services has been formally measured through a nationally scaled, establishment-level survey covering all major Ayush systems.
'The findings showed that an economy of $36.92 billion, growing at close to 17 per cent annually, is no longer a peripheral sector but a dynamic, knowledge-based service economy,' said Professor Sachin Kumar Sharma, Director General of RIS.
Where the Revenue Comes From
Clinics and day-care centres form the backbone of the Ayush services economy, collectively accounting for more than 71 per cent of total sectoral revenue. Standalone clinics generated an estimated $16.21 billion, while day-care centres contributed $10.13 billion. Ayurveda remained the dominant individual system, accounting for $17.73 billion — nearly 48 per cent of the sector's total revenue.
International patients, though small in volume at around 5 per cent of patient footfall, contribute an estimated 15–25 per cent of hospital-segment revenues, underlining the sector's outsized Medical Value Travel premium.
Women as a Workforce Majority
The gender composition of the Ayush workforce is notably skewed toward women. Women account for 43 per cent of the overall Ayush services workforce, with female participation exceeding 50 per cent in several organised segments. Women constitute over 60 per cent of the workforce in wellness settings offering Ayush-based services, 58 per cent in educational institutions, 57 per cent in day-care centres, and 53 per cent in hospitals.
What the Government Said
Prataprao Jadhav, Union Minister of State (IC) for Ayush and Minister of State for Health and Family Welfare, said the study reframes how Ayush should be understood. 'The findings of this landmark study affirm that Ayush is not merely a cultural inheritance but a dynamic and high-growth engine of India's economy. The Ayush sector is poised to play an increasingly important role in healthcare, wellness, employment and global economic engagement, while contributing to our vision of a healthy and self-reliant India,' he said.
Significance and What Comes Next
The report is described by the Ministry as providing 'a robust evidence base to guide future investment, policy planning and reforms.' This comes amid growing government emphasis on positioning traditional medicine systems as a complement — and in some segments, an alternative — to conventional healthcare. Notably, if the sector sustains its current growth trajectory, it could become one of India's top-ten service export verticals by 2047. The study is expected to inform upcoming Ayush policy reviews and potentially shape investment incentives in the sector's next budget cycle.