The global nutraceutical market is currently estimated at around $400 billion, blending the fields of food, pharmaceuticals, and biotechnology. India stands out as a key player, supported by its rich heritage of traditional knowledge, especially in Ayurveda, and a unique ecosystem that fosters growth in this sector. However, India’s share remains under 2% globally, primarily due to a lack of defined industry classification within Indian ministries, limiting targeted sector support.
Recognizing the sector’s immense potential, the Council of Scientific and Industrial Research (CSIR) constituted a Nutraceutical Sector Task Force (TF) in November 2021 under the chairmanship of the Principal Scientific Adviser to the Government of India. This Task Force includes representatives from various ministries, including the Department of Commerce, the Department of Pharmaceuticals, the Food Safety and Standards Authority of India (FSSAI), the Ministry of AYUSH, and the Ministry of Food Processing. The TF also includes significant industry representation, ensuring that industry concerns and challenges are directly addressed. The Task Force’s mandate includes proposing policy measures to address challenges and drive initiatives toward the “Harmonized System of Nomenclature” and other international standards.
Key advantages for India in the nutraceutical industry include:
- A longstanding history in health science, especially Ayurveda, offering unique traditional knowledge.
- The presence of 52 agroclimatic zones, making India ideal for cultivating medicinal plants.
- A robust hub of over 1,700 medicinal plants, including globally recognized curcumin, bacopa and ashwagandha, awaiting modern scientific validation.
- Expertise in pharmaceutical formulation, influencing high-quality nutraceutical standards.
- A thriving startup ecosystem and a growing number of successful nutraceutical companies catalysing sectoral growth.
The TF’s initiatives have led to significant advancements, including:
- Introduction of HSN Codes: Development of the first-ever Harmonized System of Nomenclature codes for streamlined trade.
- PLI Scheme: Creation of the first-ever Production-Linked Incentive (PLI) scheme for nutraceuticals.
- Nutraceutical Industry Panel: Formation of a dedicated nutraceutical industry panel under SHEFEXIL (Shellac & Forest Products Export Promotion Council) to enhance regulatory and export support.
- Compliance and Export Initiatives: SHEFEXIL has recommended nutraceuticals remain classified as food products under FSSAI’s jurisdiction. Additionally, nutraceutical exporters are now included in the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme, aligned with the Biodiversity Act 2023, to offset export costs and ensure EU compliance.
India has also prioritized infrastructure support, with nutraceutical incubation hubs and centers of excellence. NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB have developed hubs fostering innovation, while the Kerala government inaugurated the first government-backed Nutraceutical Centre of Excellence in 2024.
Through the Department of Commerce, India has showcased its nutraceutical strengths at global trade fairs, enhancing visibility and forging connections with international stakeholders. The collaboration between the Task Force and the Central Board of Indirect Taxes and Customs (CBIC) is working toward a unique HSN code to streamline exports and simplify customs procedures.
With these strategic initiatives, India’s nutraceutical sector is set for unprecedented growth. India aims to position itself as a global leader in nutraceuticals, combining traditional knowledge with modern science to attract global partnerships and investments.