India's AYUSH Sector Set for Growth as US Tariff Cut Paves the Way

India's AYUSH and nutraceutical sectors are poised for substantial growth following the United States' decision to lower tariffs, as announced under the India-US Interim Trade Deal. Pharmanza Herbal Pvt Ltd's Founder & Director, Lal Hingorani, highlighted in an exclusive interview with ANI that the high tariffs had placed severe constraints on the industry, hampering profit margins and growth.

"The industry eagerly anticipated this adjustment. Excessive tariffs severely impacted our small-margin businesses," Hingorani stated. He elaborated that reducing tariffs to 18% offers immediate relief for exporters, although there is hope for a return to previous levels. "Pricing pressures persist, especially as buyer demands clash with regulatory obligations," he added, noting that AYUSH covers traditional medicine systems like Ayurveda, Yoga, Unani, Siddha, and Homeopathy.

Data from the Ministry of AYUSH and trade analysis show that in the fiscal year 2024-25, India's AYUSH exports to the US reached approximately USD 688.89 million, a 6.11% increase. The US stands as the primary market for these products, with goods such as Ashwagandha, Turmeric, and Ginger leading exports. The interim trade framework, introduced on February 6, 2026, promises a reciprocal tariff rate of 18% and outlines a path for potentially wider tariff removals, addressing non-tariff barriers, and strengthening digital trade rules.