EconomyGS3+ GS2

Study Pegs India's Ayush Services Economy at US$36.92 Billion

PIB·2026-10-01· Read original

"Study Pegs India's Ayush Services Economy at US$36.92 Billion"

Prelims Facts

  • •The Ministry of Ayush was created as a separate ministry in 2014 and covers six recognised systems of medicine.
  • •The Ayush services economy was estimated at US$36.92 billion in FY2024-25, per a RIS study.
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Key Terms

Ayush

the six traditional systems, Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homoeopathy, under a dedicated Union ministry.

Medical Value Travel (MVT)

international patients travelling to a country specifically to receive medical or wellness treatment.

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Study Note

BackgroundCore Concept

Background

Ayush refers to the six traditional systems of medicine and wellness officially recognised in India: Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homoeopathy. These systems were brought under a separate Ministry of Ayush in 2014, upgraded from a department that had existed within the Ministry of Health since 2003. The ministry runs the National Ayush Mission to build infrastructure, promote quality standards, and support research across these six systems.

Systems Within Ayush
Ayush
Six traditional and complementary medicine systems
Ayurveda
Yoga
Naturopathy
Unani
Siddha
Homoeopathy

India's economy is conventionally divided into primary, secondary, and tertiary sectors. Growing medicinal herbs is a primary-sector activity. Manufacturing Ayurvedic medicines in a factory is a secondary or industrial activity. Clinical treatment at a clinic, a stay at a Panchakarma centre, or a session at a yoga studio are tertiary-sector, or services, activities. This distinction matters because the new study measures only the Ayush services economy, not the wider Ayush industry that also includes herb cultivation and pharmaceutical manufacturing. The tertiary sector has steadily overtaken agriculture and industry as India's largest contributor to GDP, and this study places Ayush services within that larger structural shift.

Sub-sector economic sizing has historically been weak for India's traditional health systems. Ayush was long treated as a cultural or heritage sector rather than a measurable part of the formal economy. The Research and Information System for Developing Countries (RIS), a policy think tank, was tasked with building the first nationally scaled, establishment-level evidence base for this sector.

The Topic Explained

The RIS study surveyed 15,914 establishments across all six Ayush systems to produce a bottom-up estimate of the sector's size. It put the Ayush services economy at US$36.92 billion in FY2024-25, growing at a 16.91% CAGR since FY2022-23. Clinics and day-care centres together generate more than 71% of sectoral revenue, with standalone clinics contributing about US$16.21 billion and day-care centres about US$10.13 billion. Among the six systems, Ayurveda is the largest, accounting for nearly 48% of total revenue.

A separate wellness segment, covering yoga centres, spas, and resorts offering Ayush-based services, grew even faster, at a 21.29% CAGR, with yoga centres alone posting close to 75% revenue growth over two years. …

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Related PYQs

2024GS1 Prelims

With reference to the sectors of the Indian economy, consider the following pairs:

Economic activity | Sector

1.Storage of agricultural produce | Secondary

2.Dairy farm | Primary

3.Mineral exploration | Tertiary

4.Weaving cloth | Secondary

How many of the pairs given above are correctly matched?

AOnly one
BOnly two
COnly three
DAll four
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Practice MCQs

Economyeasy

Consider the following statements regarding the Ministry of Ayush:

1.It was created as a separate Union ministry in 2014.

2.It administers six traditional systems of medicine: Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homoeopathy.

Which of the statements given above is/are correct?

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
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Economymedium

Consider the following economic activities:

1.Clinical treatment at an Ayurveda wellness clinic

2.Manufacturing of Ayurvedic medicines in a factory

3.Cultivation of medicinal herbs used in Ayurveda

Which of the above is/are classified under the tertiary (services) sector?

A1 only
B1 and 2 only
C2 and 3 only
DAll three
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Economyhard

With reference to India's Ayush services economy, match List-I with List-II and select the correct answer using the code given below:

List-I (Segment) List-II (Finding)

A.Ayurveda 1. Together contribute over 71% of sectoral revenue

B.Medical Value Travel 2. Accounts for nearly 48% of total sector revenue

C.Wellness segment (yoga, spa) 3. Generated about US$1.77 billion in FY25

D.Clinics and day-care centres 4. Recorded over 21% CAGR growth

AA-2, B-3, C-4, D-1
BA-1, B-2, C-3, D-4
CA-2, B-1, C-3, D-4
DA-4, B-3, C-2, D-1
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Economymedium

Consider the following statements regarding Medical Value Travel (MVT) in India's Ayush sector:

1.International patients contribute a disproportionately higher share of hospital revenue compared to their share of patient volume.

2.Panchakarma and residential yoga programmes are associated with shorter average patient stays than routine treatments.

Which of the statements given above is/are correct?

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
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