The global nutraceutical market, valued at $400 billion, represents a convergence of food, pharmaceuticals, and biotechnology. Despite India’s rich traditional knowledge and natural advantages, it currently holds less than 2% of the global market share, partly due to unclear industry classification within government ministries.
To address this untapped potential, India’s Council of Scientific and Industrial Research established a Nutraceutical Sector Task Force in November 2021, led by the Principal Scientific Adviser to the Government of India. The task force comprises representatives from various ministries and industry stakeholders, focusing on policy development and international standards alignment.
India’s competitive advantages in the nutraceutical sector include its extensive Ayurvedic knowledge, 52 diverse agroclimatic zones ideal for medicinal plant cultivation, and a repository of 1,700+ medicinal plants including globally recognized ingredients such as curcumin and ashwagandha. The country’s pharmaceutical expertise and growing startup ecosystem further strengthen its position.
The Task Force has achieved several key milestones:
– Introduced the first Harmonized System of Nomenclature codes for traditional Indian ingredients
– Developed a Production-Linked Incentive scheme
– Established a dedicated industry panel under the Shellac & Forest Products Export Promotion Council
– Secured inclusion of nutraceutical exporters in the RoDTEP (Remission of Duties and Taxes on Export Products), initiative
– Aligned regulations with the Biodiversity Act 2023 for EU compliance
Infrastructure development has been prioritized through the establishment of nutraceutical incubation hubs at institutions such as Centurion University and NIFTEM (National Institute of Food Technology, Entrepreneurship and Management) which is a Deemed to be University and an autonomous institution under the Ministry of Food Processing Industries, Government of India.
The government of India’s Southwestern state of Kerala launched India’s first state-backed Nutraceutical Center of Excellence in 2024, demonstrating regional commitment to sector growth.
The Department of Commerce has actively promoted India’s nutraceutical capabilities at international trade fairs, while collaboration between the Task Force and the Federal Board of Indirect Taxes and Customs aims to streamline export procedures through unique HSN codes.
SHEFEXIL’s recommendation to maintain nutraceuticals’ classification as food products under FSSAI’s (jurisdiction provides regulatory clarity. The sector’s integration into the RoDTEP scheme offers financial support for exporters while ensuring compliance with international standards.
These strategic initiatives position India for significant growth in the global nutraceutical market. The country’s approach combines traditional knowledge with modern scientific validation, creating an attractive environment for international partnerships and investments.
Last updated: December 26th, 2025
