Ayush economy clocks $36.9 billion: Study
NEW DELHI: India’s Ayush services economy has grown at nearly 17% annually over the past two years, reaching an estimated $36.92 billion in 2024-25, with the sector now supporting 1.76 million livelihoods and emerging as a growing part of the country’s healthcare, wellness and medical tourism economy.
A new study by the Research and Information System for Developing Countries (RIS), based on a survey of 15,914 Ayush establishments across the six systems, estimates that the sector could grow to $216 billion-$318 billion by 2047 if India strengthens infrastructure, quality standards, skills, digital capabilities and international market access.
The findings are significant because they place Ayush beyond its traditional role as a healthcare system and highlight its growing contribution to services, employment, wellness and medical value travel.
The report, released during the 11th Ayurveda Day celebrations in Nagpur on September 23, estimated that the Ayush services economy recorded a 16.91% compound annual growth rate (CAGR) from 2022-23 to 2024-25.
Union Minister of State for Ayush and Health, Prataprao Jadhav, said the findings showed that Ayush was becoming an important part of India’s economic landscape.
“The findings of this landmark study affirm that Ayush is not merely a cultural inheritance but a dynamic and high-growth engine of India’s economy. The Ayush sector is poised to play an increasingly important role in healthcare, wellness, employment and global economic engagement, while contributing to our vision of a healthy and self-reliant India,” he said.
The bulk of the Ayush economy is still rooted in clinics and day-care services. Together, these account for more than 71% of the sector’s total revenue, according to the study.
Standalone clinics contributed an estimated $16.21 billion, while day-care centres accounted for another $10.13 billion.
Among the different Ayush systems, Ayurveda remains the largest contributor, generating an estimated $17.73 billion, or nearly 48% of the sector’s total revenue.
The numbers indicate that the economic footprint of Ayush is not confined to large hospitals or organised wellness chains. More than one million livelihoods are concentrated in local and standalone clinics, underlining the importance of small healthcare establishments in the sector.
Vaidya Rajesh Kotecha, secretary, Ministry of Ayush, said the study was the first attempt to measure the sector’s economic contribution through a nationally scaled establishment-level survey covering all major Ayush systems.
“This report provides a robust evidence base to guide future investment, policy planning and reforms,” he said.
RIS Director General (Prof) Sachin Kumar Sharma said the survey showed that Ayush had evolved into a significant service economy.
“This study marks an important step in building an evidence-based understanding of India’s Ayush services economy. Based on a nationally scaled survey of 15,914 establishments across all six Ayush systems, the findings show that an economy of US$36.92 billion, growing at close to 17 per cent annually and supporting 1.76 million livelihoods, is no longer a peripheral sector but a dynamic, knowledge-based service economy,” he said.
The fastest-growing part of the sector is not necessarily conventional clinical care. The study found strong growth in Ayush-linked wellness services, including yoga centres, spas and resorts.
The wellness segment recorded a 21.29% CAGR, while revenues of yoga centres increased by around 75% over two years.
The growth reflects rising consumer interest in preventive health, fitness, stress management and holistic wellness. It also opens up a larger economic space for yoga and other Ayush-based services beyond traditional treatment settings.
But the expansion also brings a need for stronger quality controls, trained professionals and standardised services, particularly as the sector seeks to attract international patients.
Employment is another important dimension of the sector.
The RIS study estimates that Ayush services directly support 1.76 million livelihoods, with women accounting for about 43% of the overall workforce.
Female participation is higher in several organised segments. Women constitute more than 60% of the workforce in wellness settings such as spas and resorts offering Ayush-based services. Their share is 58% in educational institutions, 57% in day-care centres and 53% in hospitals.
This suggests that the expansion of Ayush services could also create opportunities for women across healthcare delivery, education, wellness and allied services.
The sector is also beginning to find a place in India’s medical value travel market.
The study estimates that Ayush services generated $1.77 billion in medical value travel revenue in 2024-25.
International patients make up only around 5% of patient volumes, but they contribute an estimated 15-25% of revenues in the hospital segment. Longer treatment programmes appear to be one reason. Ayush therapies such as Panchakarma and residential yoga programmes can involve stays of five to 11 days.
The report also found a link between digital presence, quality certification and the ability to attract overseas patients.
Establishments with a functional website were found to have 3.6 times higher odds of attracting international patients, while recognised quality accreditation such as NABH or ISO was associated with roughly twice the odds.
This could make accreditation, digital health records and international-facing services increasingly important as Indian Ayush providers look beyond the domestic market.
The RIS projections, however, depend on how effectively the sector addresses some of the gaps that could limit its expansion.
The report identifies four broad areas for future growth: strengthening the Ayush knowledge value chain; improving enterprise and institutional capabilities; expanding global competitiveness and medical value travel; and using digital technologies and artificial intelligence to drive innovation.
It also calls for wider quality accreditation, better digital health systems, workforce skilling and greater international readiness.
The projected $216 billion-$318 billion economy by 2047 therefore represents a potential trajectory rather than a guaranteed outcome.
For Ayush, the next phase may depend on whether its rapid growth can be matched by better quality systems, credible evidence, skilled manpower and consistent standards. The challenge will be to expand an increasingly commercial wellness and healthcare ecosystem without losing focus on safe, reliable and quality care.
The RIS study thus places Ayush at an intersection of healthcare and the wider services economy — with its future increasingly linked not only to traditional medicine, but also to jobs, wellness, entrepreneurship, technology and India’s ambitions in global healthcare.
