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India’s Nutraceutical Sector Gears Up for Global Growth, Leveraging Traditional Knowledge and Modern Science

New Delhi: Valued at approximately $400 billion globally, the nutraceutical market is witnessing a surge in innovation, blending food, pharmaceuticals, and biotechnology. India, with its rich heritage in Ayurveda and a unique ecosystem of resources, is emerging as a key player. Despite its potential, India’s current share in the global nutraceutical market remains under 2%, mainly due to limited sector-specific classification and targeted support within Indian ministries.

In response, the Council of Scientific and Industrial Research (CSIR) established a Nutraceutical Sector Task Force (TF) in November 2021, chaired by the Principal Scientific Adviser to the Government of India. The task force includes officials from the Department of Commerce, Department of Pharmaceuticals, Food Safety and Standards Authority of India (FSSAI), Ministry of AYUSH, Ministry of Food Processing, and key industry representatives. The TF’s mandate focuses on advancing policies that promote sector growth, aiming for global alignment through the “Harmonized System of Nomenclature” and international trade standards.

Key Advantages and Recent Advancements

India’s nutraceutical sector benefits from a combination of deep-rooted traditional health knowledge, a diverse ecosystem, and modern pharmaceutical capabilities:

  • Ayurvedic Heritage: India’s longstanding expertise in health sciences, particularly Ayurveda, provides a foundation for unique product development.
  • Agroclimatic Diversity: With 52 distinct agroclimatic zones, India supports the cultivation of over 1,700 medicinal plants, such as curcumin and ashwagandha, known globally for their health benefits.
  • Pharmaceutical Expertise: India’s established pharmaceutical industry sets high standards for nutraceutical formulation.
  • Startup Ecosystem: The sector is seeing a rapid rise in nutraceutical startups, bringing innovation and fueling growth.

The TF has achieved key milestones, including:

  • HSN Codes: Introduction of the first Harmonized System of Nomenclature codes to streamline trade and export processes.
  • PLI Scheme: Launch of a Production-Linked Incentive (PLI) scheme specifically for nutraceuticals.
  • Regulatory Support: A dedicated nutraceutical panel under SHEFEXIL (Shellac & Forest Products Export Promotion Council) enhances regulatory and export support.

To boost compliance and exports, SHEFEXIL has recommended keeping nutraceuticals under FSSAI’s jurisdiction. Nutraceutical exporters are now included in the Remission of Duties and Taxes on Export Products (RoDTEP) scheme, with provisions aligning with the Biodiversity Act 2023 to aid EU compliance.

Infrastructure and International Outreach

India is also focusing on infrastructure development with nutraceutical incubation hubs and centers of excellence across the country. Notably, the Kerala government opened India’s first government-backed Nutraceutical Centre of Excellence in 2024. Other innovation hubs have been established by NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB to drive industry growth.

India’s participation in international trade fairs, led by the Department of Commerce, has increased visibility, helping forge connections with global stakeholders. Additionally, the Task Force is collaborating with the Central Board of Indirect Taxes and Customs (CBIC) to implement unique HSN codes, which will simplify customs procedures and boost exports.

Aiming for Global Leadership

Through these efforts, India’s nutraceutical sector is positioned for significant growth, aiming to become a global leader by merging traditional knowledge with scientific advancements. With rising global interest in natural and holistic health products, India’s focus on nutraceuticals is set to attract international partnerships and investments, potentially transforming the sector into a cornerstone of the country’s economic and healthcare advancements.

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