India’s traditional systems of medicine, collectively known as AYUSH, have received formal recognition in two major international trade agreements:
- India–Oman Comprehensive Economic Partnership Agreement (CEPA)
- India–New Zealand Free Trade Agreement (FTA)
Both agreements were finalised in December 2025 and include annexures on health-related services and traditional medicine, marking a significant step in integrating AYUSH into global trade frameworks.
Key Highlights
- First-time formal trade recognition: AYUSH systems are explicitly acknowledged in bilateral trade agreements.
- Partner countries: Oman and New Zealand.
- Mode of recognition: Annexures on health services and traditional medicine within the CEPA/FTA texts.
- Policy lead: Ministry of AYUSH, Government of India.
- Strategic signal: Growing international acceptance of traditional and complementary medicine.
Why This Matters for AYUSH
- Until now, AYUSH faced:
- Regulatory barriers
- Limited overseas market access
- Absence of formal recognition in trade agreements
- Inclusion in FTAs/CEPAs provides:
- Greater legitimacy to AYUSH systems
- Clearer regulatory pathways in partner countries
- Easier market entry for Indian practitioners, hospitals, and product manufacturers
- Encourages:
- Cross-border research collaboration
- Standardisation and quality benchmarking
- Mutual recognition of practices and products
This places India’s traditional medicine systems firmly on the global healthcare and wellness map.
Boost to Exports and Economic Growth
- AYUSH and herbal exports are already growing:
- 2023–24: USD 649.2 million
- 2024–25: USD 688.89 million
- Growth: 6.11%
- Trade agreement recognition can further:
- Reduce non-tariff barriers
- Improve mutual recognition of standards
- Increase consumer confidence in overseas markets
- Globally, demand is rising for:
- Preventive healthcare
- Wellness-based therapies
- Integrative and holistic medicine
Embedding AYUSH in FTAs reflects India’s intent to position traditional medicine alongside modern healthcare systems.
Strategic Significance
- Agreements with Oman and New Zealand are expected to act as a template for future FTAs
- Supports India’s broader objectives:
- Services exports expansion
- Soft power and cultural diplomacy
- Knowledge economy based on indigenous systems
- Strengthens India’s role as a global wellness and integrative healthcare hub
AYUSH System of Medicine
What is AYUSH?
AYUSH stands for:
- Ayurveda
- Yoga & Naturopathy
- Unani
- Siddha
- Homoeopathy
These systems are:
- Based on holistic health philosophies
- Focused on prevention, wellness, and balance
- Rooted in India’s traditional knowledge systems
Institutional Framework
- Ministry of AYUSH was created to:
- Promote education, research and global outreach of AYUSH
- Regulate standards and quality
- Support integration with public health systems
Government Initiatives to Promote AYUSH
- AYUSH wings in defence and railway hospitals
- Soft loans and subsidies for private AYUSH hospitals and clinics
- Institutes of excellence for teaching and research
- 12,500 AYUSH Health & Wellness Centres under Ayushman Bharat
- Advisory on immunity enhancement using Ayurveda-based practices
AYUSH: Broader Potential
- Addresses doctor shortage (India has ~80 doctors per lakh population)
- Expands healthcare access through medical pluralism
- Supports medical tourism and wellness tourism
- Generates employment and MSME growth
- Aligns with preventive healthcare focus in SDGs
- Needs stronger evidence-based research (clinical trials, global standards)