India’s Nutraceutical Sector Eyes Global Leadership with Strategic Policy Push

India’s unique advantages in the nutraceutical domain are deeply rooted in its Ayurvedic knowledge and biodiversity. (Photo Source: Pexels)

India is positioning itself as a rising star in the global nutraceutical market, currently valued at USD 400 billion, which combines food, pharmaceuticals, and biotechnology. Despite holding only a modest 2% global share, India’s rich heritage in traditional medicine, especially Ayurveda, and its vast agroclimatic diversity are key drivers for growth. However, a lack of clear industry classification has hampered targeted support from Indian ministries, which hampers targeted support for the sector.

Recognizing the untapped potential, India’s Council of Scientific and Industrial Research (CSIR) established a Nutraceutical Sector Task Force in November 2021, headed by the Principal Scientific Adviser to the Government. Comprising representatives from key 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 Task Force includes significant industry representation. Together, they aim to address regulatory challenges and align India’s nutraceutical sector with global standards, including the “Harmonized System of Nomenclature” (HSN) for streamlined international trade.

India’s unique advantages in the nutraceutical domain are deeply rooted in its Ayurvedic knowledge and biodiversity. With 52 agro-climatic zones, India is an ideal location for cultivating medicinal plants like curcumin, bacopa, and ashwagandha, ingredients in high demand worldwide. Leveraging India’s pharmaceutical prowess, the sector benefits from stringent quality standards, while a growing startup ecosystem brings fresh ideas and energy into the mix.

Recent policies have accelerated this growth. The introduction of HSN codes has simplified trade classifications, and the Production-Linked Incentive (PLI) scheme now incentivizes local manufacturing. A dedicated panel under SHEFEXIL (Shellac and Forest Products Export Promotion Council) supports export growth, ensuring that nutraceuticals are classified as food products under FSSAI’s purview. Exporters also benefit from the RoDTEP Scheme (Remission of Duties and Taxes on Export Products), which aligns with the Biodiversity Act 2023, enhancing cost-effectiveness and compliance with EU standards.

Infrastructure development is another critical area of focus. Nutraceutical incubation hubs and centers of excellence, such as those at NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB, are driving innovation. Kerala recently inaugurated India’s first government-backed Nutraceutical Centre of Excellence, marking a milestone in public support for this industry. Additionally, India’s presence at international trade fairs has increased, showcasing its nutraceutical strengths and creating partnerships with global stakeholders.

Through these concerted efforts, India’s nutraceutical sector is on a trajectory for rapid expansion, leveraging its traditional knowledge and modern science. As India positions itself as a global leader, the country’s blend of heritage and innovation stands ready to capture a larger share of the lucrative nutraceutical market.

First published on: 07 Nov 2024, 07:21 IST

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