NEW DELHI: India’s Ayush services sector is emerging as one of the country’s fastest-growing service economies, with its contribution estimated at US$36.92 billion in FY2024-25, according to a new study by the Research and Information System for Developing Countries (RIS).
The sector has registered a 16.91 per cent compound annual growth rate (CAGR) since FY2022-23 and currently supports around 1.76 million livelihoods, highlighting its growing role beyond traditional healthcare and wellness.
The RIS report, released during the 11th Ayurveda Day celebrations in Nagpur on September 23, projects that the Ayush services economy could expand to US$216 billion–US$318 billion by 2047, potentially making it an important contributor to India’s Viksit Bharat @2047 vision.
Ayurveda leads a rapidly expanding sector
According to the study, clinics and day-care centres form the backbone of the Ayush services economy, accounting for more than 71 per cent of total sectoral revenue.
Standalone clinics generated an estimated US$16.21 billion, while day-care centres contributed US$10.13 billion. Ayurveda was the largest individual Ayush system, generating US$17.73 billion, or nearly 48 per cent of the sector’s total revenue.
The wellness segment is also witnessing rapid expansion. The study estimates that Ayush-based yoga centres, spas and resorts recorded a 21.29 per cent CAGR, with yoga centres alone reporting around 75 per cent revenue growth over two years.
Sector supports 1.76 million livelihoods
The growing Ayush economy is also translating into employment opportunities across healthcare, wellness and education.
The sector directly supports an estimated 1.76 million livelihoods, with more than one million concentrated in local and standalone clinics.
Women account for 43 per cent of the overall Ayush workforce, with female participation exceeding 50 per cent in several organised segments. Women constitute more than 60 per cent of the workforce in wellness establishments offering Ayush-based services, while their participation stands at 58 per cent in educational institutions, 57 per cent in day-care centres and 53 per cent in hospitals.
Medical tourism adds another growth avenue
The study identifies Medical Value Travel (MVT) as another significant opportunity for the sector. Ayush services generated an estimated US$1.77 billion in MVT revenue in FY2024-25.
Although international patients account for only around 5 per cent of patient volumes, they contribute an estimated 15–25 per cent of revenues in the hospital segment.
Ayush therapies such as Panchakarma and residential yoga programmes can also result in longer stays, with international patients reportedly staying between five and 11 days on average.
Digital presence and quality certification are emerging as important factors in attracting overseas patients. 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 roughly double the odds.
Government sees global economic potential
Union Minister of State (Independent Charge) for Ayush and Minister of State for Health and Family Welfare Prataprao Jadhav said the findings demonstrate that Ayush is evolving from a cultural inheritance into a high-growth component of India’s economy.
Ayush Secretary Vaidya Rajesh Kotecha said the study provides a nationally scaled, establishment-level assessment of the sector and can serve as an evidence base for future investment, policymaking and reforms.
RIS Director General Professor Sachin Kumar Sharma said the survey of 15,914 establishments across six Ayush systems demonstrates the emergence of Ayush as a significant knowledge-based service economy.
$318-billion ambition by 2047
The report identifies four broad areas that could shape the sector’s future: strengthening the Ayush knowledge value chain, building enterprise and institutional capabilities, improving global competitiveness and Medical Value Travel, and promoting innovation through digital technologies and artificial intelligence.
It also calls for wider quality accreditation, digital health records, workforce skilling, stronger international readiness and responsible adoption of emerging technologies.
