Praising the efforts taken by the government in boosting the ayurvedic industry, the Ayurvedic Medicine Manufacturers Organisation of India (AMMOI) informed that it is very happy with the way the government had responded to the issues raised by the association over the years. AMMOI said that the Union Budget this year has been pro ayurvedic industry with some of its major issues have been sorted out and paving way to better prospects for the sector.
One of the important highlights of the budget this year had been the government's decision to recognise the industry's long standing demand to identify ASU products falling under section 25 (d) licence of the Drugs and Cosmetics Act (D&C) as drugs.
Dr Ramanathan Devaraj Iyer, general secretary of AMMOI, said, “Earlier there was a confusion in the industry wherein ASU drugs falling under section 25 (d) licence was considered as cosmetics wherein a VAT of 12.5 per cent was levied from the products falling under this category. But in this budget, the government has clarified our doubts and have clearly identified our demands by declaring that henceforth all the products falling under this category will be considered as drugs. With this decision, the industry is very happy as the VAT levied from the products have been cut down to 5 per cent from its earlier rate.”
Other important highlight that will boost the industry is the decision taken by the centre to completely withdraw the tax levied on honey as it is an important ingredient for making almost all the ayurvedic products. He informed that such impetus by the government is essential as it will help in sensitising the country about the existence and development of this highly skilled but niche sector. He further informed that a major boost for both the sector and the state comes in the form of the announcement made during the budget on the proposal to start a global ayurveda village at Korti.
“Though its too early to comment on this project, we are very excited about this proposal as it will provide a huge incentive to the industry placing it at a growth projectory. We are happy that Kerala has been chosen as the destination for this village as the state has a huge presence of the industry and a great potential to backup the ayurveda industry. We are looking forward to hear from the government further on this so that we can also actively contribute to it,” he said.
Other important announcement made by the finance minster for the ASU industry includes the proposal to start ayurveda university in Kottakal, Kerala with an investment of Rs 1 crore and setting up of an Infra park with the investment of 5 crore which is instituted with an aim to make Kerala a global destination for ayurveda in the world.