New Delhi: The Ayush services sector has emerged as one of India’s fastest-growing service sectors, with its economic contribution estimated at US$36.92 billion in FY2024-25, according to a study by the Research and Information System for Developing Countries (RIS).
The Ayush services sector has recorded a 16.91 per cent Compound Annual Growth Rate (CAGR) since FY2022-23 and is increasingly contributing to India’s economic growth through healthcare, wellness, employment generation and Medical Value Travel.
The study projects that the Ayush services economy could expand to US$216 billion–US$318 billion by 2047, highlighting its potential contribution to the Viksit Bharat @2047 vision.
The report was formally released during the 11th Ayurveda Day celebrations in Nagpur on September 23.
Prataprao Jadhav, Union Minister of State (IC) for Ayush and Minister of State for Health & Family Welfare, said the findings represent a significant milestone in recognising the economic potential of the Ayush sector.
“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,” the Minister stated.
Secretary, Ministry of Ayush Vaidya Rajesh Kotecha said the study provides a nationally scaled assessment of the economic contribution of the Ayush services sector.
“For the first time, the economic contribution of the Ayush services sector has been measured through a nationally scaled, establishment-level survey covering all major Ayush systems.
The report provides a robust evidence base to guide future investment, policy planning and reforms,” Kotecha stated.
Professor Sachin Kumar Sharma, Director General, RIS, highlighted the scale and growth of the Ayush services 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,” Sharma said.
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Ayush Services Economy Records 16.91% CAGR
According to the RIS study, the Ayush services economy was estimated at US$36.92 billion in FY2024-25, registering a CAGR of 16.91 per cent since FY2022-23.
The findings point to the emergence of Ayush services as a significant segment of India’s services economy. The study identifies organised healthcare delivery, wellness services, quality infrastructure and global outreach as areas with potential for further expansion.
Clinics and day-care centres form the core of the Ayush services economy, together accounting for more than 71 per cent of total sectoral revenue. Standalone clinics generated an estimated US$16.21 billion, while day-care centres contributed US$10.13 billion.
Ayurveda remained the largest individual Ayush system, accounting for US$17.73 billion, or nearly 48 per cent of the sector’s total revenue.
Ayush Wellness Segment Shows Strong Growth
The RIS study also highlights the growing economic significance of the Ayush-based wellness segment, which includes yoga centres, spas and resorts offering Ayush-based services.
The segment recorded a 21.29 per cent CAGR. Within the segment, yoga centres registered around 75 per cent growth in revenue over two years, indicating rising demand for preventive health, wellness and holistic care services.
The growth of wellness offerings is an important component of the wider Ayush services economy, alongside healthcare delivery through clinics, hospitals and day-care centres.
Ayush Services Support 1.76 Million Livelihoods
The study identifies the Ayush services sector as a significant source of employment, directly supporting 1.76 million livelihoods.
More than one million jobs are concentrated in local and standalone clinics. Women account for 43 per cent of the overall Ayush services workforce, while female participation exceeds 50 per cent in several organised segments.
Women constitute more than 60 per cent of the workforce in wellness settings, including spas and resorts offering Ayush-based services.
Women account for 58 per cent of the workforce in educational institutions, 57 per cent in day-care centres and 53 per cent in hospitals.
Ayush Services Generate US$1.77 Billion in Medical Value Travel
The study also points to the growing potential of Ayush services in Medical Value Travel (MVT). The sector generated an estimated US$1.77 billion in MVT revenue in FY2024-25.
While international patients account for only around 5 per cent of patient volumes, they contribute an estimated 15–25 per cent of hospital-segment revenues.
According to the study, Ayush therapeutic programmes, including Panchakarma and residential Yoga, are associated with longer patient stays. The average length of stay ranges from five to 11 days.
Digital Presence and Accreditation Linked to International Patients
Digital visibility and quality accreditation are emerging as important factors in attracting international patients to Ayush services establishments.
The study found that establishments with a dedicated functional website have 3.6 times higher odds of attracting international patients. Recognised quality accreditation, such as NABH or ISO, is associated with a doubling of such odds.
The findings highlight digital capabilities and quality systems as important components of the sector’s future expansion, particularly as Ayush providers seek greater international market access.
Ayush Services Economy Could Reach US$318 Billion by 2047
The RIS study projects significant growth potential for the Ayush services sector as India advances towards Viksit Bharat @2047.
The Ayush services economy could expand from an estimated US$36.92 billion in FY2024-25 to between US$216 billion and US$318 billion by 2047, subject to the strengthening of infrastructure, quality systems, skills, digital capabilities and international market access.
The study outlines a strategic pathway based on four pillars: the knowledge value chain of Ayush; enterprise and institutional capabilities; global competitiveness and Medical Value Travel; and innovation through digital technologies and Artificial Intelligence.
It also emphasises the need for wider quality accreditation, digital health records, workforce skilling, international readiness and responsible adoption of emerging technologies.
The findings underline the expanding role of Ayush services as a healthcare and wellness ecosystem as well as a contributor to employment generation, entrepreneurship, services-led economic growth and India’s growing global engagement in traditional and complementary medicine.
The RIS study provides an evidence-based assessment of the evolving Ayush services landscape and identifies opportunities to strengthen the sector’s contribution to India’s healthcare, wellness and economic development priorities in the years ahead.
