India’s nutraceutical industry rises globally with strategic initiatives
Valued at around $400 billion, the global nutraceutical market intersects food, pharmaceuticals, and biotechnology. India, with its rich Ayurvedic heritage and unique ecosystem, has emerged as an essential player in this space, well-positioned for robust growth. Yet, despite these advantages, India’s share in the global nutraceutical market remains under 2%, primarily due to the lack of formal industry classification within Indian ministries, which restricts targeted support and regulatory clarity.
To harness the sector’s potential, the Council of Scientific and Industrial Research (CSIR) established a Nutraceutical Sector Task Force in November 2021, chaired by the Principal Scientific Adviser to the Government of India. This Task Force includes representatives from key ministries such as the Department of Commerce, Department of Pharmaceuticals, the Food Safety and Standards Authority of India (FSSAI), Ministry of AYUSH, and Ministry of Food Processing, as well as prominent industry leaders. This collaborative approach ensures industry challenges are directly addressed. The Task Force is tasked with developing policy measures to propel India’s nutraceutical sector toward international standards, including the Harmonized System of Nomenclature (HSN).
India’s nutraceutical industry benefits from several strategic advantages. Its extensive Ayurvedic history offers a foundation of unmatched traditional knowledge, while diverse agro-climatic zones support a wide range of medicinal plants, including high-demand species like curcumin, bacopa, and ashwagandha, which are increasingly validated by scientific research. The country’s pharmaceutical expertise also promotes high standards in nutraceutical formulation, and a vibrant startup ecosystem is fueling sector-wide growth.
Recent Task Force initiatives have brought significant advancements for the nutraceutical industry. The introduction of HSN codes is a critical step toward streamlined trade and regulatory alignment, and India’s first Production-Linked Incentive (PLI) scheme for nutraceuticals further underscores the sector’s importance. SHEFEXIL (Shellac & Forest Products Export Promotion Council) has established a dedicated nutraceutical industry panel to enhance regulatory and export support, encourage compliance, and drive growth. SHEFEXIL has advocated that nutraceuticals remain classified as food products under FSSAI’s jurisdiction to streamline oversight. Additionally, to support exporters, nutraceuticals have been included under the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme, aligned with the Biodiversity Act 2023, to offset export costs and ensure compliance with EU standards.
India is also investing in infrastructure to support the industry through nutraceutical incubation hubs and centers of excellence. Institutions such as NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB are fostering innovation, while the Kerala government inaugurated the country’s first government-backed Nutraceutical Centre of Excellence in 2024. Further bolstering India’s global visibility, the Department of Commerce has showcased the country’s nutraceutical capabilities at international trade fairs, strengthening India’s connections with global stakeholders. Collaboration between the Task Force and the Central Board of Indirect Taxes and Customs (CBIC) is underway to create a unique HSN code, which will simplify customs procedures and facilitate exports.
These strategic initiatives are positioning India’s nutraceutical sector for unprecedented growth and a stronger global role. By combining traditional knowledge with scientific innovation, India aims to attract international partnerships and investments, solidifying its place as a global leader in nutraceuticals.
