EconomyGS3+ GS2

India-EU FTA and Budget push AYUSH systems toward global mainstream

The Hindu·2026-07-29· Read original

"India-EU FTA and Budget push AYUSH systems toward global mainstream"

Prelims Facts

  • •AYUSH Ministry budget reached ₹4,408 crore in the current financial year — nearly double its allocation five years ago.
  • •National AYUSH Mission funding raised by 66% in the Union Budget to modernise dispensaries and upgrade drug-testing labs.
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Key Terms

AYUSH

Acronym for Ayurveda, Yoga & Naturopathy, Unani, Siddha, Homoeopathy; India's traditional medicine systems under a dedicated Ministry.

TCAM

Traditional, Complementary, and Alternative Medicine; WHO's umbrella term for non-biomedical health systems evaluated under international regulatory frameworks.

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Study Note

BackgroundCore Concept

Background

India's traditional medicine systems — Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homoeopathy, collectively branded as AYUSH — have been practised for millennia but were institutionally marginalised during the colonial period, when biomedicine was privileged as the official health paradigm. Post-independence, the Indian Medicine Central Council Act, 1970 and the Homoeopathy Central Council Act, 1973 provided statutory recognition to these systems, but they remained underfunded relative to allopathic medicine. A structural shift came with the creation of a dedicated Ministry of AYUSH in 2014, signalling a policy intent to mainstream traditional medicine rather than treat it as a peripheral complement.

The regulatory architecture for AYUSH products is governed primarily by the Drugs and Cosmetics Act, 1940, which has separate schedules for Ayurvedic, Siddha, and Unani drugs. The Pharmacopoeia Commission for Indian Medicine and Homoeopathy (PCIMH) sets quality standards, while the National AYUSH Mission (NAM), launched under the National Health Mission framework, channels central funds to states for infrastructure, manpower, and drug availability. Over the past five years, the Ministry's budget has nearly doubled, reaching ₹4,408 crore in the current financial year — a trajectory that reflects both political prioritisation and growing domestic demand for integrative healthcare.

The Topic Explained

The AYUSH ecosystem operates across three distinct dimensions: clinical practice, manufacturing and exports, and research. On the clinical side, AYUSH practitioners are licensed under state medical councils, and the National Commission for Indian System of Medicine Act, 2020 replaced the older Central Council to modernise education standards. On the manufacturing side, India is one of the world's largest producers of herbal and traditional medicine products, with exports running into thousands of crores annually — a sector that competes with Chinese traditional medicine and European herbal products in global markets.

The research dimension is the most contested. Traditional, Complementary, and Alternative Medicine (TCAM) systems are built on epistemological frameworks that differ fundamentally from biomedical science. Ayurveda, for instance, conceptualises the body not as a collection of discrete organs but as an interdependent system shaped by constitution (prakriti), environment, diet, and season. …

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Related PYQs

2022GS1 Prelims

With reference to Ayushman Bharat Digital Mission, consider the following statements:

1.Private and public hospitals must adopt it.

2.As it aims to achieve universal health coverage, every citizen of India should be part of it ultimately.

3.It has seamless portability across the country.

Which of the statements given above is/are correct?

A1 and 2 only
B3 only
C1 and 3 only
D1, 2 and 3
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Practice MCQs

Economymedium

Which of the following best describes the Traditional Herbal Medicinal Products Directive (THMPD) in the context of India's AYUSH exports?

AA WTO agreement that mandates zero tariffs on herbal medicine trade between member states
BAn EU regulatory framework requiring evidence of safety, quality, and traditional use for herbal medicines sold in Europe
CA bilateral protocol under the India-EU FTA that automatically recognises Indian AYUSH certifications in all EU member states
DA WHO standard that classifies AYUSH products as essential medicines for developing countries
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Economyhard

Consider the following statements regarding the epistemological basis of Ayurveda as discussed in the context of TCAM regulation:

1.Ayurveda conceptualises the body as an interdependent system shaped by constitution, environment, diet, and season.

2.Biomedicine and Ayurveda share the same foundational methodology of anatomical localisation.

3.The systemic logic of TCAM systems creates methodological challenges for standard randomised controlled trial (RCT) evaluation.

Which of the statements given above is/are correct?

A1 and 2 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
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Economymedium

Assertion (A): India's AYUSH research faces a structural conflict of interest that undermines its global credibility.

Reason (R): Much of the research on AYUSH systems is funded, designed, or overseen by the same Ministry that is mandated to promote AYUSH.

Which of the following is correct?

ABoth A and R are true, and R is the correct explanation of A
BBoth A and R are true, but R is not the correct explanation of A
CA is true but R is false
DA is false but R is true
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Economyeasy

Which of the following legislative instruments governs the quality and safety standards for Ayurvedic, Siddha, and Unani drugs in India?

AThe Indian Medicine Central Council Act, 1970
BThe Drugs and Cosmetics Act, 1940
CThe National Commission for Indian System of Medicine Act, 2020
DThe Pharmacy Act, 1948
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