The global nutraceutical market, valued at approximately $400 billion, is blending food, pharmaceuticals, and biotechnology, with India positioning itself as a key player due to its rich heritage in traditional knowledge, especially Ayurveda. Despite this potential, India’s current share in the global market remains under 2%, largely due to a lack of defined industry classification, which hinders targeted sector support.

To address these challenges and unlock the sector’s vast potential, the Council of Scientific and Industrial Research (CSIR) formed a Nutraceutical Sector Task Force (TF) in November 2021, chaired by the Principal Scientific Adviser to the Government of India. The Task Force, comprising representatives from multiple ministries including Commerce, Pharmaceuticals, FSSAI, AYUSH, and Food Processing, aims to propose policy measures to strengthen the sector. A key focus of the TF has been aligning with international standards, particularly the Harmonized System of Nomenclature (HSN).

India offers significant advantages in the nutraceutical sector:

• A deep-rooted history in health sciences, notably Ayurveda, providing unique traditional knowledge.
• 52 agroclimatic zones ideal for cultivating medicinal plants.
• A rich diversity of over 1,700 medicinal plants, including curcumin, bacopa, and ashwagandha, waiting for modern scientific validation.
• Expertise in pharmaceutical formulation to uphold high-quality nutraceutical standards.
• A thriving startup ecosystem with numerous nutraceutical companies driving growth.

Under the Task Force’s leadership, several key initiatives have been launched to enhance the industry:

• HSN Codes: The introduction of HSN codes for nutraceuticals has streamlined global trade processes.
• PLI Scheme: India launched the first-ever Production-Linked Incentive (PLI) scheme for nutraceuticals, aimed at boosting domestic manufacturing.
• Nutraceutical Industry Panel: A dedicated panel under SHEFEXIL (Shellac & Forest Products Export Promotion Council) has been established to improve regulatory frameworks and export support.
• Compliance & Export Support: Nutraceuticals are now classified as food products under FSSAI, while exporters are eligible for the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme. These steps align with the Biodiversity Act 2023, helping Indian products meet EU compliance standards.

The Indian government has also emphasized infrastructure development for the sector, with nutraceutical incubation hubs and centers of excellence being set up at NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB. Additionally, Kerala’s government-backed Nutraceutical Centre of Excellence, inaugurated in 2024, marks a significant milestone in fostering innovation.

India has further enhanced its global presence by showcasing nutraceutical strengths at international trade fairs through the Department of Commerce. The collaboration between the Task Force and the Central Board of Indirect Taxes and Customs (CBIC) is focused on streamlining exports through unique HSN codes and simplified customs procedures.

With these strategic initiatives and a growing focus on combining traditional knowledge with modern scientific advancements, India is poised to become a global leader in the nutraceutical sector, attracting international investments and partnerships.