The total trade in medicinal plants in India during 2004-05 has been 4,530 crore, of which exports account for Rs 3,423 crore and imports to the tune of Rs 1,107 crore. Average growth rate of medicinal and aromatic plants trade has been 13 per cent. Europe and the US continue to be major export destinations for Indian herbal products.

India's herbal exports to Europe stood at Rs 253 crore during 2004-05, comprising 35 per cent of the total exports, followed by the US with Rs 216 crore accounting for 30 per cent of exports. India's exports to Asia were at Rs 166 crore occupying 23 per cent of the total exports.

Product standardization and adhering to the global trade standards is an area that needs emphasis. Opportunity lies for India in the supply of raw materials. There are about 1500 medicinal plants of which 500 are used in the preparation of drugs. The National Medicinal Plant Board (NMPB) has also identified 32 prioritized medicinal plants, which are in demand in the domestic and international markets.

The industry needs IPR protection, disseminating knowledge about herbal drugs, proper scientific documentation and scientifically proving the safety and efficacy of drugs through large-scale clinical trials. All this will favour in gaining a significant share in the global herbal market, as per a Cygnus Business Consulting and Research report.

Research in herbal medicine is primarily being carried out to identify active ingredients of phytochemicals and molecules. Companies should improve their marketing efforts in order to enter potential export markets besides giving attention to GMP and patenting their products. Branding of herbal products will also make a difference, according to P Balaram, Badruka Institute of Foreign Trade.

India should develop a standard trading platform, which will facilitate import and export and herbal products. A proposal has been made to establish a trade facilitation centre for foreign trade at Hyderabad.