Nutraceutical Sector Poised for Global Leadership through Traditional Knowledge, Modern Science, and Strategic Policy Support

Despite India's unique advantages, its global market share remains under 2%, mainly due to the lack of clear industry classification, which limits targeted policy and support for the sector.


Devdiscourse News Desk | New Delhi | Updated: 07-11-2024 20:01 IST | Created: 07-11-2024 20:01 IST
Nutraceutical Sector Poised for Global Leadership through Traditional Knowledge, Modern Science, and Strategic Policy Support
The government has prioritized infrastructure with dedicated nutraceutical incubation hubs and centres of excellence.
  • Country:
  • India

India is emerging as a critical player in the global nutraceutical market, valued at over $400 billion, drawing from its rich heritage in traditional health sciences, such as Ayurveda, and leveraging an expanding ecosystem for growth. Despite India's unique advantages, its global market share remains under 2%, mainly due to the lack of clear industry classification, which limits targeted policy and support for the sector.

To address these challenges, the Council of Scientific and Industrial Research (CSIR) established a Nutraceutical Sector Task Force (TF) in November 2021, under the chairmanship of the Principal Scientific Adviser to the Government of India. The Task Force brings together various ministries, including the Department of Commerce, Department of Pharmaceuticals, the Food Safety and Standards Authority of India (FSSAI), the Ministry of AYUSH, and the Ministry of Food Processing, alongside industry leaders. This alliance enables the Task Force to address industry-specific needs and introduce policies that facilitate sector growth, including progress towards international standards and the “Harmonized System of Nomenclature.” Key Competitive Advantages in India’s Nutraceutical Sector:

Traditional Knowledge: India’s extensive history in Ayurveda provides a unique foundation for developing nutraceutical products that combine ancient knowledge with modern scientific research.

Diverse Agroclimatic Zones: With 52 distinct agroclimatic zones, India is ideal for growing a wide range of medicinal plants, many of which are integral to the nutraceutical industry.

Rich Medicinal Plant Resources: Over 1,700 medicinal plant species, including curcumin, bacopa, and ashwagandha, are native to India and are globally recognized for their health benefits.

Pharmaceutical Expertise: India’s established strength in pharmaceuticals contributes to the high standards of formulation and production in the nutraceutical sector.

Thriving Startup and Innovation Ecosystem: A growing base of nutraceutical startups and companies is driving innovation, pushing India toward global leadership in the sector.

Recent Strategic Advancements:

The Nutraceutical Task Force has led several initiatives to strengthen India’s position in the global market:

HSN Codes for Nutraceuticals: Introduction of Harmonized System of Nomenclature (HSN) codes specific to nutraceuticals facilitate trade and provide clearer classification for customs.

PLI Scheme for Nutraceuticals: The Production-Linked Incentive (PLI) scheme specifically targets the nutraceutical sector, promoting investment and enhancing industry competitiveness.

Nutraceutical Industry Panel: Under SHEFEXIL (Shellac & Forest Products Export Promotion Council), a dedicated panel was established to provide focused support for export and regulatory compliance.

Export and Compliance Initiatives: Nutraceuticals have been classified as food products under FSSAI jurisdiction, streamlining domestic regulatory processes. Nutraceuticals are also eligible for export benefits under the Remission of Duties and Taxes on Export Products (RoDTEP) scheme, ensuring compliance with the Biodiversity Act 2023 and EU standards.

Infrastructure and Global Promotion

The government has prioritized infrastructure with dedicated nutraceutical incubation hubs and centres of excellence. Recent initiatives include hubs at NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB, while Kerala established India’s first government-supported Nutraceutical Centre of Excellence in 2024. Internationally, the Department of Commerce has promoted Indian nutraceuticals at global trade events, building connections with key stakeholders worldwide.

India’s nutraceutical sector, supported by traditional knowledge and modern advancements, is set for robust growth. By aligning with global standards, strengthening regulatory frameworks, and showcasing Indian nutraceuticals on the international stage, India aims to increase its market share and attract global partnerships, positioning itself as a leading force in the global nutraceutical industry.

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