Ayush services sector growing fast, may reach $318 billion by 2047: Study

The sector recorded a compound annual growth rate (CAGR) of 16.91 per cent since 2022-23 and directly supported 1.76 million livelihoods, the study said

The Ayush services sector has emerged as one of India's fastest-growing service segments, with its economic contribution estimated at $36.92 billion in 2024-25 and the sector projected to expand to $216-318 billion by 2047, according to a study.

The sector recorded a compound annual growth rate (CAGR) of 16.91 per cent since 2022-23 and directly supported 1.76 million livelihoods, the study by the Research and Information System for Developing Countries (RIS) said.

The report, released during the 11th Ayurveda Day celebrations in Nagpur on September 23, also estimated that the sector generated $1.77 billion in Medical Value Travel (MVT) revenue in 2024-25.

 

Union Ayush Minister Prataprao Jadhav said the findings highlighted the growing 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. 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," Jadhav said.

Secretary, Ministry of Ayush, Vaidya Rajesh Kotecha said the study provided an evidence base for future policy and investment.

"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." RIS Director General Professor Sachin Kumar Sharma said the study was based on a survey of over 15,000 establishments across all six Ayush systems.

"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 $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." According to the study, clinics and day-care centres accounted for more than 71 per cent of the sector's total revenue.

Standalone clinics generated an estimated $16.21 billion, while day-care centres contributed $10.13 billion.

Ayurveda was the largest individual system, accounting for $17.73 billion, or nearly 48 per cent of the sector's total revenue.

The Ayush-based wellness segment, including yoga centres, spas and resorts, recorded a CAGR of 21.29 per cent. Yoga centres alone registered around 75 per cent growth in revenue over two years, the study said.

The sector directly supported 1.76 million livelihoods, with more than one million jobs concentrated in local and standalone clinics.

Women accounted for 43 per cent of the overall workforce, with their participation exceeding 50 per cent in several organised segments.

The study also highlighted the sector's growing role in MVT. International patients accounted for around 5 per cent of patient volumes but contributed an estimated 15-25 per cent of hospital-segment revenues.

Ayush therapeutic programmes, including Panchakarma and residential yoga, were associated with longer patient stays, with the average length of stay ranging from five to 11 days, it said.

The study found that establishments with a dedicated functional website had 3.6 times higher odds of attracting international patients, while recognised quality accreditation such as NABH or ISO was associated with a doubling of such odds.

It projected that the Ayush services economy could expand to $216-318 billion by 2047, subject to improvements in infrastructure, quality systems, skills, digital capabilities and international market access.

The report identified four broad areas for strengthening the sector -- the Ayush knowledge value chain, enterprise and institutional capabilities, global competitiveness and MVT, and innovation through digital technologies and artificial intelligence.

It also emphasised wider quality accreditation, digital health records, workforce skilling, international readiness and responsible adoption of emerging technologies.