The Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy (AYUSH) industry represents the traditional form of Indian medicine and is part of India’s socio-cultural heritage, small and medium-sized enterprises (MSMEs), which account for more than 80% of businesses located in unidentifiable geographic conglomerates.
The traditional health medicine market has grown all the time, all over the world. Although the AYUSH industry was one of the most traditional forms of medicine, it has not been able to seize the opportunities of the emerging market mainly due to limitations such as industry fragmentation, lack of standardization of raw materials and finished products, R&D insufficient, slow modernization of production processes and technologies, lack of focused marketing and branding, insufficient emphasis on HRD and others as AYUSH Sciences is not recognized as Medical and Health Care Sciences.
The cluster approach is increasingly recognized as an effective and sustainable strategy to improve the competitiveness of MSMEs. Such an approach, which capitalizes on the geographical proximity of companies based on the principle of “cooperation in competition”, is participatory, profitable and provides a critical mass for the personalization of interventions. The cluster development AYUSH was introduced during the XI plan and will be implemented during the XII Five Year Plan.
- Closing critical gaps in the sector, particularly in relation to standardization, quality assurance and control, productivity, marketing, infrastructure and capacity building through a group-based approach, preferably for classical ASU and homoeopathic medicines.
- Promoting the degree of organization in the sector thus creates social capital for the sustainability of collective initiatives.
- The “AYUSH Cluster Development Program” is a core sector program and would be completed concurrently with the 12th Five Year Plan.
- The AYUSH Department would allocate Rs 121.Rs 75 crores in the 12 five year plan to fund projects under the programme.
- The program would be implemented with the support of the AYUSH department and the support would be provided through a grant to the Special Purpose Vehicle (SPV) formed by a group of businesspeople from the AYUSH sector.
The plan would cover two types of interventions, namely core intervention and complementary intervention
- core interventions such as those related to the establishment of common facilities for testing, certification, standardization, quality control and other capacity-building activities
- complementary interventions like these related to Marketing/branding, providing general infrastructure to support production units, etc.
Support would be limited to 60% of the project cost, subject to a maximum of Rs 15.00 crore. by AYUSH are only used for physical infrastructure, civil works, construction of buildings, plants and machinery and equipment. The purchase of SPV plots of land, the salary of the cluster development manager, the joint participation in national and international fairs, the business delegations abroad and the development of the brand, etc. are borne by SPV.
Project costs for the purposes of the program are the total costs of the proposed interventions mentioned in section 4. The system would be modular in nature with a provision to add interventions to the DPR of the approved project while implementation is ongoing. However, the addition must be consistent with the overall project and the objectives of the system and the approval of PAC.