Greater grants for research in Ayurveda and more support for D2C brands engaged in manufacturing, Kapiva’s cofounder Ameve Sharma shares his Budget 2023 wishlist
India exports Rs 22,000 crore worth of ayurvedic medicines every year. With nearly 80% market share, the country is also the largest market for Ayurveda, followed by the Middle East which claims a 5% market share.
In 2021, the Indian ayurvedic products market reached a value of Rs515.5 billion according to IMARC Group. The market is excepted to reach Rs 1,536.9 billion by 2027 showing a compound annual growth rate (CAGR) of 19.78% between 2022 and 2027.
The industry needs impetus from the government to achieve this according to Ameve Sharma, cofounder of the Ayurvedic D2C brand Kapiva.
“We are glad that in the Union Budget of 22-23, a significant portion (Rs 3,050 crore) was allocated to the Ministry of Ayush to promote preventative healthcare. We are expecting this budget to increase further, in line with the uptick in consumer acceptance for preventive, traditional medicines in the post-covid era,” he said.
An increase in the budget earmarked for research grants in the field of Ayurveda would be welcome, he added. This would help foster innovation through government and industry collaborations, as the millennial consumer looks for proof of clinical efficacy.
“Emphasis also needs to be given on R&D, which I think is not happening right now. When the country begins investing in its own R&D processes for the beauty and skincare sector, for instance, it will essentially own the formulation(s), have the option of patenting them, and earn several benefits in the process,” he said.
With regards to the D2C segment, Sharma feels that the government should also support D2C brands with their own manufacturing units with special manufacturing zones. He pointed out that the current manufacturing zones that are within cities are either too cramped and populated as their sizes are restricted. “Those outside the cities are too distant, hence not feasible.”
These steps according to him will help boost the government’s appeal for boosting local manufacturing and brands.