The Exim Bank has come out with a detailed study on the herbal drug market in the country and suggestions to augment its exports.
The study in detail explores the available infrastructure facilities with the Indian System of Medicine, including educational infrastructure, drug delivery and research, standardization and control, besides assessing the market potential and suggestions to boost drug exports.
One among the recommendations of the study - 'Exporting Indian Healthcare', is to develop a cluster of exclusive Ayurveda and Siddha Co-operative parks to boost exports from the country with private and public participation. It also suggests setting up Ayurveda and Siddha hospitals in various countries, besides exploring development of exportable services and the need to project Ayurveda and Siddha as complete healthcare packages abroad. The study also calls for mobilizing and consolidating the resources and various factions of the sector with active support of the Government to corner a major share in the global market.
The study notes that the supply side constraints like lack of standardization, lack of knowledge on international regulations governing imports of raw materials, lack of proper information on the demand dynamics in the overseas market are some of the factors that hinder the growth of herbal drug exports from the country. Since the global market is growing at a much faster rate than the domestic market, the manufacturers need to orient themselves to cater to the export needs. It is necessary to create an organized backbone for the Ayurveda and Siddha sector. It should be developed as an industry parallel to the pharmaceutical industry. Modernization and upgradation, coupled with integrated effort from the Government, industry, educational institutions and research agencies are important for the future growth and for competing in the international markets, observes the study.
The study notes that world demand for herbal products are growing at 10-15 percent per annum and over 80 percent of the global population relies on traditional systems of medicine for their basic healthcare needs. The global market for herbal products, including medicines, food supplements, beauty and toiletry products, is around $ 62 billion, of which herbal medicine market alone accounts for $ 5 billion. It is likely to grow to $ 16 billion by 2005, estimates the study.
Europe and North America together accounts for 63 per cent of the global herbal market, valued at $ 16.7 billion in 1997. The European market for herbal drugs accounts for 45 per cent of the world trade, and is worth $ 7.5 billion. Germany and France are the most established markets with a share of 22 per cent and 11 percent in Europe, said the study which noted that $ 5.5 billion medicinal plant related trade is currently held in India.