Ayush services economy hits $36.92 bn in FY25, could reach $318 bn by 2047

Share:
Audio Loading voice…
Ayush services economy hits $36.92 bn in FY25, could reach $318 bn by 2047

Synopsis

For the first time, India has put a hard number on its Ayush services economy — $36.92 billion in FY25, growing at nearly 17% a year — with a projection that it could hit $318 billion by 2047. That would make traditional medicine one of India's largest service export verticals, a claim that shifts the sector from cultural symbolism to measurable economic weight.

Key Takeaways

India's Ayush services sector contributed an estimated $36.92 billion to the economy in FY25 , per a new RIS study.
The sector is projected to scale to $216 billion–$318 billion by 2047 , growing at a CAGR of 16.91% since FY23.
Ayurveda leads all systems at $17.73 billion , accounting for nearly 48% of total Ayush revenue.
The sector supports about 1.76 million livelihoods and generated $1.77 billion in Medical Value Travel revenue.
Women make up 43% of the overall workforce, exceeding 50% in several organised segments.
International patients represent only 5% of patient volumes but contribute 15–25% of hospital-segment revenues.

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.

Point of View

Both of which face regulatory and quality-standardisation hurdles that the report does not fully address. The first-time measurement of Ayush's economic footprint is itself a policy achievement, providing a baseline that did not exist before. But the gap between measuring a sector and scaling it is precisely where past traditional-medicine pushes have stalled — without rigorous quality benchmarks and international recognition of Ayush qualifications, the export ceiling remains far lower than the headline number suggests.
NationPress
30 Sept 2026

Frequently Asked Questions

How much did the Ayush services sector contribute to India's economy in FY25?
The Ayush services sector contributed an estimated $36.92 billion to India's economy in FY25, according to a study by the Research and Information System for Developing Countries (RIS) released on 30 September 2026. The sector has been growing at a compound annual growth rate of 16.91% since FY23.
What is the projected size of India's Ayush economy by 2047?
The RIS study projects that India's Ayush services economy could scale to between $216 billion and $318 billion by 2047, contingent on sustaining current growth trends. The findings were released during the 11th Ayurveda Day celebrations in Nagpur.
Which Ayush system generates the most revenue?
Ayurveda is the largest individual system within the Ayush services sector, accounting for $17.73 billion — nearly 48% of the sector's total revenue in FY25. Standalone clinics and day-care centres together account for more than 71% of total sectoral revenue.
How significant is Medical Value Travel to the Ayush sector?
Medical Value Travel generated $1.77 billion in revenue for the Ayush sector. While international patients represent only about 5% of patient volumes, they contribute an estimated 15–25% of hospital-segment revenues, making them a disproportionately high-value segment.
What role do women play in the Ayush workforce?
Women account for 43% of the overall Ayush services workforce and exceed 50% in several organised segments. They constitute over 60% of the workforce in wellness settings, 58% in educational institutions, 57% in day-care centres, and 53% in hospitals.
Nation Press
The Trail

Connected Dots

Tracing the thread behind this story — newest first.

8 Dots
  1. Latest 5 months ago
  2. 8 months ago
  3. 8 months ago
  4. 9 months ago
  5. 1 year ago
  6. 1 year ago
  7. 1 year ago
  8. 1 year ago
Google Prefer NP
On Google