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India’s Nutraceutical Industry Poised for Global Growth with Supportive Initiatives

Context

  • The global nutraceutical market is currently estimated at approximately $400 billion, integrating aspects of food, pharmaceuticals, and biotechnology.
  • Despite this significant market size, India’s share remains under 2%.
  • This limited participation is largely attributed to the absence of a clearly defined industry classification within Indian ministries, which hampers targeted support for the sector.

India’s Position in the Nutraceutical Sector

India is recognized as a key player in the nutraceutical industry due to several advantages:

  • Traditional Knowledge: India boasts a rich heritage in health sciences, particularly through Ayurveda, which provides unique traditional knowledge applicable to nutraceuticals.
  • Agro Climatic Diversity: The country has 52 agroclimatic zones, making it suitable for cultivating a wide range of medicinal plants.
  • Medicinal Plant Resources: India is home to over 1,700 medicinal plants, including well-known varieties like curcumin, bacopa, and ashwagandha, which are awaiting modern scientific validation.
  • Pharmaceutical Expertise: The Indian pharmaceutical sector has a strong foundation in formulation, which influences high-quality nutraceutical standards.
  • Startup Ecosystem: A thriving startup environment has led to a growing number of successful nutraceutical companies that are driving sectoral growth.

Government and Institutional Initiatives Supporting Nutraceutical Growth

  • Nutraceutical Sector Task Force (TF): Established in November 2021 by the Council of Scientific and Industrial Research (CSIR), this Task Force includes representatives from multiple ministries and industry stakeholders. such as:
    • Department of Commerce
    • Department of Pharmaceuticals
    • Food Safety and Standards Authority of India (FSSAI)
    • Ministry of AYUSH
    • Ministry of Food Processing
  • Chaired by India’s Principal Scientific Adviser, the TF focuses on regulatory frameworks and policies to boost the nutraceutical sector.
  • It aims to create a “Harmonized System of Nomenclature” and align India with global standards.
  • Introduction of Harmonized System of Nomenclature (HSN) Codes: India has developed its first-ever HSN codes for nutraceuticals to facilitate standardised trade practices and ease export procedures.
  • Production-Linked Incentive (PLI) Scheme: For the first time, the nutraceutical industry is eligible for a PLI scheme. This incentive is designed to stimulate domestic production, making Indian nutraceuticals more competitive globally.
  • Nutraceutical Industry Panel under SHEFEXIL
    • A dedicated industry panel was established under SHEFEXIL (Shellac & Forest Products Export Promotion Council), aiming to strengthen regulatory and export support for the sector.
  • Compliance and Export Incentives: SHEFEXIL has recommended that nutraceuticals be classified as food products under FSSAI (Food Safety and Standards Authority of India) for regulatory clarity.
    • Additionally, nutraceutical exports now qualify for the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme, which offsets export costs to boost competitiveness in the European market and beyond.
  • Infrastructure and Research Support: India has prioritised infrastructure for innovation in nutraceuticals:
    • NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB have set up hubs focused on nutraceutical R&D.
    • In 2024, the Kerala government launched the first government-backed Nutraceutical Centre of Excellence, fostering cutting-edge research and development.
  • Global Engagement and Trade Promotion: Through the Department of Commerce, India has showcased its nutraceutical products at global trade fairs, raising international awareness and building partnerships with foreign stakeholders.

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I, Sakshi Gupta, am a content writer to empower students aiming for UPSC, PSC, and other competitive exams. My objective is to provide clear, concise, and informative content that caters to your exam preparation needs. I strive to make my content not only informative but also engaging, keeping you motivated throughout your journey!