The global nutraceutical market is valued at approximately US$ 400 billion, blending the fields of food, pharmaceuticals, and biotechnology. This rapidly growing industry is gaining attention worldwide due to its potential to bridge the gap between nutrition and health. India, with its rich heritage in traditional knowledge, particularly in Ayurveda, holds a promising position in this market. However, despite its vast potential, India's share of the global nutraceutical market remains under 2%, mainly due to lack of a clear industry classification within Indian ministries. This absence of a defined framework hampers the targeted sector support required to foster growth.

India's Role in the Global Nutraceutical Market

India has an abundance of traditional knowledge and a strong ecosystem that naturally supports the growth of the nutraceutical sector. However, the country’s share in the global market has been limited by regulatory challenges and insufficient coordination between various ministries. The absence of a clear industry classification has led to inefficiencies in support mechanisms, resulting in slow progress compared to other global players.

India’s vast Ayurvedic heritage offers a unique opportunity to integrate ancient wisdom with modern scientific advancements, positioning the country as a strong contender in the global nutraceutical industry. The global demand for natural, plant-based health products continues to rise, and India, with its rich biodiversity and traditional knowledge systems, is well-positioned to lead this charge. However, a concerted effort by the government, industry, and academia is essential to unlock the true potential of this market.

Government Initiatives for Nutraceutical Sector Growth

In response to the sector’s challenges and growth potential, the Council of Scientific and Industrial Research (CSIR) established a Nutraceutical Sector Task Force (TF) in November 2021. The task force, chaired by the Principal Scientific Adviser to the Government of India, brings together representatives from various ministries, including the Department of Commerce, Pharmaceuticals, Food Safety and Standards Authority of India (FSSAI), AYUSH, and Food Processing. Additionally, industry representatives are actively involved in the task force to address sector-specific challenges and develop strategies for growth.

Key initiatives led by the Nutraceutical Task Force include the introduction of Harmonized System of Nomenclature (HSN) codes for trade and the creation of India’s first-ever Production-Linked Incentive (PLI) scheme for nutraceuticals. The PLI scheme is designed to incentivize domestic production and export, enhancing India's competitiveness in the global market. Moreover, the task force has facilitated the establishment of a nutraceutical industry panel under the Shellac & Forest Products Export Promotion Council (SHEFEXIL), which focuses on improving regulatory compliance and export support for nutraceutical products.

Strategic Initiatives and Infrastructure Developments

The Indian government has also initiated key infrastructure developments to foster innovation in the nutraceutical sector. Incubation hubs have been established at prominent institutions like NIFTEM-Kundli and Centurion University. These hubs provide a platform for startups and innovators to develop and commercialize nutraceutical products, contributing to the sector’s rapid development.

In 2024, the Kerala government inaugurated the Nutraceutical Centre of Excellence, which aims to promote research and development in the nutraceutical industry. This initiative is expected to provide a strong foundation for India’s growth as a global leader in nutraceuticals, especially in areas such as herbal supplements, functional foods, and Ayurvedic-based nutraceuticals.

India’s Export Potential and Global Trade Presence

With the increasing global demand for natural health products and plant-based solutions, India’s export potential in the nutraceutical sector is substantial. The government has recognized the importance of international trade fairs in raising the visibility of Indian nutraceutical products globally. Efforts are being made to enhance India’s presence at key trade fairs, promoting Indian products and expanding its export footprint.

The combination of traditional Ayurvedic knowledge, government-backed initiatives, and innovation-driven infrastructure is set to position India as a global leader in the nutraceuticals market. The country’s expertise in producing high-quality, natural products, combined with its competitive pricing, makes it an attractive destination for global consumers seeking effective health solutions.

Moving Toward Unprecedented Growth

India’s nutraceutical market is on the brink of unprecedented growth. The government’s strategic initiatives, coupled with India’s natural resources and traditional knowledge, are creating a robust ecosystem for the nutraceutical industry. However, the country must continue to overcome existing regulatory barriers and ensure that targeted sectoral support is available to enable rapid growth. By positioning itself as a leader in the global nutraceutical market, India can contribute significantly to the world’s health and wellness sector.

In conclusion, the collaboration between the government, industry, and research institutions is critical to unlocking the full potential of India’s nutraceutical sector. As the country combines its rich heritage with modern science, it is poised to become a major player in the global nutraceutical market, offering innovative, sustainable, and natural health solutions to the world.

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