India’s Ayush services sector has emerged as one of the country’s fastest-growing service segments, with its economic contribution estimated at US$36.92 billion in FY2024-25, according to a new study by the Research and Information System for Developing Countries (RIS).
The sector recorded a 16.91 per cent compound annual growth rate (CAGR) since FY2022-23 and directly supports around 1.76 million livelihoods, highlighting its growing contribution to healthcare, wellness, employment and services-led economic growth.
The study projects that the Ayush services economy could expand to between US$216 billion and US$318 billion by 2047, potentially making it a significant contributor to the Viksit Bharat @2047 vision.
The report was formally released during the 11th Ayurveda Day celebrations in Nagpur on September 23.
Ayush emerging as a major services economy
According to the RIS study, the Ayush services economy grew at a CAGR of 16.91 per cent between FY2022-23 and FY2024-25, reaching an estimated US$36.92 billion in FY25.
The study is based on a nationally scaled survey of 15,914 establishments covering all six Ayush systems.
RIS Director General Professor Sachin Kumar Sharma said the findings provide an evidence-based understanding of the sector’s economic contribution.
“This study marks an important step in building an evidence-based understanding of India’s Ayush services economy,” Sharma said, noting that the sector’s estimated US$36.92 billion economy, annual growth of close to 17 per cent and support for 1.76 million livelihoods demonstrate its expanding role as a knowledge-based service economy.
Clinics and day-care centres drive revenues
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.
Among the individual Ayush systems, Ayurveda remained the largest, generating an estimated US$17.73 billion, or nearly 48 per cent of total sectoral revenue.
The findings point to further expansion opportunities through organised healthcare delivery, wellness services, quality infrastructure and greater international outreach.
Wellness segment records strong growth
The study also highlights the growing economic importance of Ayush-based wellness services, including yoga centres, spas and resorts.
The wellness segment recorded a 21.29 per cent CAGR. Revenue generated by yoga centres increased by around 75 per cent over two years, reflecting rising demand for preventive healthcare, wellness and holistic care services.
The growth indicates the expanding role of Ayush beyond clinical healthcare into organised wellness and lifestyle-related services.
Sector supports 1.76 million livelihoods
The Ayush services sector directly supports approximately 1.76 million livelihoods, with more than one million jobs concentrated in local and standalone clinics.
Women account for 43 per cent of the overall Ayush services workforce, while their participation exceeds 50 per cent in several organised segments.
Women constitute more than 60 per cent of the workforce in spas and resorts offering Ayush-based services, followed by 58 per cent in educational institutions, 57 per cent in day-care centres and 53 per cent in hospitals.
The findings highlight the sector’s role not only in healthcare delivery but also in employment and livelihood generation.
Ayush generates $1.77 billion from Medical Value Travel
The study identifies Medical Value Travel (MVT) as another area with significant growth potential for Ayush services.
The sector generated an estimated US$1.77 billion in MVT revenue in FY25.
Although international patients account for only around 5 per cent of patient volumes, they contribute an estimated 15–25 per cent of hospital-segment revenues.
The study notes that Ayush therapeutic programmes, including Panchakarma and residential Yoga, are associated with longer patient stays, with the average length of stay ranging between five and 11 days.
Digital presence and accreditation influence international reach
The report also identifies digital visibility and quality accreditation as important factors in attracting international patients.
According to the study, Ayush establishments with a dedicated functional website have 3.6 times higher odds of attracting international patients.
Recognised quality accreditation, including NABH or ISO, is associated with a doubling of the odds of attracting international patients.
The findings point to the importance of digital capabilities, quality standards and international readiness as the Ayush sector seeks to expand its global presence.
Sector could reach $216-318 billion by 2047
The RIS study projects that the Ayush services economy could grow from US$36.92 billion in FY25 to US$216-318 billion by 2047.
The projected expansion, however, is linked to strengthening the sector’s infrastructure, quality systems, skills, digital capabilities and access to international markets.
The report outlines a strategic pathway based on four broad pillars: the Ayush knowledge value chain; enterprise and institutional capabilities; global competitiveness and Medical Value Travel; and innovation through digital technologies and Artificial Intelligence.
It also emphasises wider quality accreditation, digital health records, workforce skilling, international readiness and responsible adoption of emerging technologies.
Ayush’s expanding economic role
Union Minister of State (Independent Charge) for Ayush and Minister of State for Health and Family Welfare Prataprao Jadhav said the findings mark an important milestone in recognising the economic potential of the 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,” Jadhav said.
He added that the sector is positioned to play an increasingly important role in healthcare, wellness, employment and global economic engagement while contributing to the vision of a healthy and self-reliant India.
Ayush Secretary Vaidya Rajesh Kotecha said the study was the first nationally scaled, establishment-level assessment measuring the economic contribution of the Ayush services sector across all major Ayush systems.
Kotecha said the report provides an evidence base for future investment, policy planning and reforms.
The RIS study presents Ayush as an expanding healthcare and wellness ecosystem with growing contributions to employment generation, entrepreneurship, services-led economic growth and India’s international engagement in traditional and complementary medicine. Its projections also point to the sector’s potential role in supporting India’s broader economic and development priorities through 2047.
