Relevant for Exams
AYUSH gains formal recognition in India's trade pacts with Oman and New Zealand, boosting exports.
Summary
India's traditional medicine system, AYUSH, has secured formal recognition in bilateral trade agreements with Oman and New Zealand, finalized in December. This inclusion of dedicated sections for health services and traditional medicine signifies a major boost for AYUSH on the global stage. It is crucial for competitive exams as it highlights India's economic diplomacy, promotion of traditional healthcare, and contributes to export growth, with AYUSH and herbal product exports reaching USD 688.89 million in 2024-25.
Key Points
- 1India's traditional medicine system, AYUSH, received formal recognition in bilateral trade agreements.
- 2The trade agreements were finalized with Oman and New Zealand in December (implying December 2023).
- 3These agreements include dedicated sections for health services and traditional medicine.
- 4AYUSH and herbal product exports grew by 6.11 percent.
- 5Total AYUSH and herbal product exports reached USD 688.89 million in 2024-25, up from USD 649.2 million in 2023-24.
In-Depth Analysis
India's rich heritage in traditional medicine, collectively known as AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homoeopathy), has long been a cornerstone of its healthcare system. The recent formal recognition of AYUSH in bilateral free trade agreements (FTAs) with Oman and New Zealand marks a significant milestone in India's efforts to globalize its traditional healthcare systems. These agreements, finalized in December 2023, include dedicated sections for health services and traditional medicine, elevating AYUSH from a domestic practice to a globally acknowledged healthcare modality.
**Background Context and Historical Journey:**
India's traditional medicine systems boast an ancient lineage, with Ayurveda dating back thousands of years. For centuries, these systems thrived locally, providing affordable and accessible healthcare. However, their formal integration into modern healthcare infrastructure and global recognition has been a more recent endeavor. The establishment of the Ministry of AYUSH in November 2014 by the Government of India was a pivotal step, demonstrating a clear commitment to promoting, developing, and regulating these traditional systems. This move aimed to mainstream AYUSH within India and project it internationally as a credible and complementary healthcare option. The Ministry has since worked on various fronts, including research, education, quality control, and international collaboration. The push for recognition in FTAs is a natural progression of this strategic vision, leveraging India's economic diplomacy to achieve health and cultural objectives.
**What Happened and Key Stakeholders:**
In December 2023, India successfully concluded free trade agreements with Oman and New Zealand. A key highlight of these pacts is the explicit inclusion of provisions for traditional medicine, specifically AYUSH. This means that AYUSH products, services, and practitioners will likely face fewer trade barriers and receive greater facilitative measures in these partner countries. The data cited, showing a 6.11 percent growth in AYUSH and herbal product exports, reaching USD 688.89 million in 2024-25 from USD 649.2 million in 2023-24, underscores the existing market demand and the potential for further expansion with formal recognition.
The key stakeholders in this development are multifaceted. The **Government of India**, particularly the **Ministry of AYUSH** and the **Ministry of Commerce & Industry**, played crucial roles in negotiating and advocating for AYUSH's inclusion. The **AYUSH industry** (manufacturers, exporters, service providers) stands to gain immensely from reduced trade barriers and increased market access. **AYUSH practitioners** will find new avenues for practice and collaboration abroad. On the other side, the **governments and populations of Oman and New Zealand** are stakeholders, as these agreements open up new healthcare options and trade opportunities for them. International bodies like the **World Health Organization (WHO)**, which has a Traditional Medicine Strategy (2014-2023, now updated for 2025-2034) aimed at integrating traditional medicine into national health systems, also form a broader stakeholder context, validating India's approach.
**Significance for India and Broader Themes:**
This recognition holds immense significance for India across several dimensions. Economically, it provides a substantial boost to India's export potential, contributing to the 'Make in India' and 'Atmanirbhar Bharat' initiatives by promoting indigenous products and services. It helps diversify India's export basket and tap into the growing global wellness market. Politically and diplomatically, it enhances India's 'soft power' by showcasing its unique cultural heritage and traditional knowledge systems on a global stage. This aligns with India's broader strategy of cultural diplomacy, projecting India as a source of holistic well-being. From a public health perspective, it promotes alternative and complementary medicine systems, potentially offering more diverse and affordable healthcare solutions globally. It also sets a precedent for future trade negotiations, encouraging other countries to recognize and integrate AYUSH.
**Constitutional and Policy Framework:**
While there isn't a specific constitutional article solely dedicated to AYUSH, its promotion aligns with several constitutional principles and legislative frameworks. The **Seventh Schedule** of the Constitution places 'Public health and sanitation; hospitals and dispensaries' under the State List (Entry 6), but 'Trade and commerce with foreign countries' (Entry 41) and 'International treaties, agreements and conventions' (Entry 14) are in the Union List. This empowers the Union government to negotiate and implement such trade agreements. The executive power of the Union, as per **Article 73**, extends to matters with respect to which Parliament has power to make laws, thus covering international relations and trade pacts. Furthermore, **Article 253** enables Parliament to make laws for implementing any international treaty, agreement, or convention, which could be relevant for domestic implementation of the FTA provisions. The **National Health Policy, 2017**, explicitly advocates for mainstreaming AYUSH systems and integrating them into public health. The **Drugs and Cosmetics Act, 1940**, also has specific provisions for the regulation of Ayurvedic, Siddha, and Unani drugs, ensuring quality control for exports.
**Future Implications:**
This successful inclusion in FTAs with Oman and New Zealand sets a crucial precedent. India is actively negotiating FTAs with other major economies like the UK, EU, and Australia. The experience gained here will likely inform and strengthen India's position in advocating for similar provisions in these upcoming agreements. This could lead to a broader global acceptance of AYUSH, fostering greater research and development, standardisation, and regulatory harmonisation. Increased global demand could also spur domestic investment in AYUSH infrastructure, education, and R&D. However, challenges related to intellectual property rights, stringent international quality standards, and dispelling misconceptions about traditional medicine will need continuous attention for sustained growth and acceptance.
Exam Tips
This topic falls under GS-II (International Relations, Government Policies & Interventions) and GS-III (Indian Economy, Science & Technology - Health) for UPSC. For SSC, Banking, and State PSCs, it's relevant for General Awareness, Economy, and Current Affairs sections.
Study India's major Free Trade Agreements (FTAs) and their strategic importance. Understand the components of AYUSH, the objectives of the Ministry of AYUSH, and India's overall 'Look East' and 'Connect West' policies in relation to trade and diplomacy.
Common question patterns include: MCQs on countries involved in the recent AYUSH recognition, growth figures of AYUSH exports, establishment year of Ministry of AYUSH, or the full forms of AYUSH components. Mains questions could focus on the economic and diplomatic significance of promoting AYUSH globally, challenges in its internationalization, or its role in India's soft power strategy.
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Full Article
India's traditional medicine system, AYUSH, has achieved formal recognition in bilateral trade agreements with Oman and New Zealand. These agreements, finalized last December, include dedicated sections for health services and traditional medicine. AYUSH and herbal product exports saw a growth of 6.11 percent, reaching USD 688.89 million in 2024-25 from USD 649.2 million in 2023-24.
