Academic Journal of Plant Sciences 1 (2): 26-36, 2008

ISSN 1995-8986
© IDOSI Publications, 2008

Herbal Medicine for Market Potential in India: An Overview

1
Alok Sharma, 2 C. Shanker, 3 Lalit Kumar Tyagi, 3 Mahendra Singh and 1 Ch.V.Rao
1
Pharmacognosy and Ethnopharmacology Division, National Botanical Research Institute,
Rana Pratap Marg, Post Box No: 436, Lucknow, India-226 001, India
2
Faculty of Pharmacy, Allahabd Agricultutre Instutute, Deemed University, Naini, Allahabad, India
3
NIMS Institute of Pharmacy, NIMS University Shobha Nagar, Jaipur, Rajasthan, India

Abstract: People are using herbal medicines from centuries for safety, efficacy, cultural acceptability and
lesser side effects. Plant and plant products have utilized with varying success to cure and prevent diseases
throughout history. Written records about medicinal plants date back at least 5000 years to the Sumerians
and ancient records are suggested earlier use of medicinal plants. Due to side effects of synthetic products,
herbal products are gaining popularity in the world market. In spite of well-practiced knowledge of herbal
medicine and occurrence of a large number of medicinal plants, the share of India in the global market is
not up to the mark. The present article deals with the measures to be adopted for global promotion of Indian
herbal products. The scenario and perceptions of herbal medicine are discussed.

Key words: Medicinal plants Market potential Herbal industries Herbal trade
• • •

INTRODUCTION hazards associated with the indiscriminate use of

modern medicine and the herbal drug industries is now
Recently there has been a shift in universal trend very fast growing sector in the international market. But
from synthetic to herbal medicine, which we can say unfortunately, India has not done well in this
‘Return to Nature’. Medicinal plants have been known international trade of herbal industry due to lack of
for millennia and are highly esteemed all over the world scientific input in herbal drugs. So, it would be
as a rich source of therapeutic agents for the prevention appropriate to highlight the market potential of herbal
of diseases and ailments. Nature has bestowed our products and that would open floodgate for
country with an enormous wealth of medicinal plants; development of market potential in India [2]. With
therefore India has often been referred to as the these objects, we reviewed here the market potential of
Medicinal Garden of the world. Countries with ancient herbal medicine in India.
civilizations such as China, India, South America,
Egypt, etc. are still using several plant remedies for INDIAN HERBAL TRADE
various conditions. In this regard India has a unique IN WORLD SCENARIO
position in the world, where a number of recognized
indigenous system of medicine viz., Ayurveda, Siddha, The utilization of herbal drugs is on the flow and
Unani, Homeopathy, Yoga and Naturopathy are being the market is growing step by step [3]. The annual
utilized for the health care of people. No doubts that the turnover of the Indian herbal medicinal industry is
herbal drugs are popular among rural and urban about Rs. 2,300 crore as against the pharmaceutical
community of India. The one reason for the popularity industry’s turnover of Rs. 14,500 crores with a growth
and acceptability is belief that all natural products are rate of 15 percent [4]. The export of medicinal plants
safe. The demand for plant based medicines, health and herbs from India has been quite substantial in the
products, pharmaceuticals, food supplement, cosmetics last few years. India is the second largest producer of
etc are increasing in both developing and developed castor seeds in the world, producing about 1,25,000
countries, due to the growing recognition that the tonnes per annum. The major pharmaceuticals exported
natural products are non-toxic, have less side effects from India in the recent years are isabgol, opium
and easily available at affordable prices [1]. Now a alkaloids, senna derivatives, vinca extract, cinchona
days, there is a revival of interest with herbal-based alkaloids, ipecac root alkaloids, solasodine,
medicine due to the increasing realization of the health Diosgenine/16DPA, Menthol, gudmar herb, mehdi

Corresponding Author: Dr. Alok Sharma, Pharmacognosy and Ethnopharmacology Division, National Botanical Research
Institute, Rana Pratap Marg, Post Box No: 436, Lucknow, India-226 001, India
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 Academic J. Plant Sci., 1 (2): 26-36, 2008

Table 1: List of Medicinal plants whose market potential is very high

S.N. Name of the plant (Ranunculaceae) Common name Figures Medicinal uses

Cardiac stimulant [18],

Aconitum ferox
1. Vatsnabh Anti-rheumatic [19],
(Ranunculaceae)
Anti-inflammatory [19]

For curing stomach ache and fever

Aconitum heterophyllum [20],
2. Atis
(Ranunculaceae) Tonic [21], Febrifuge [21],
Anti-cough [21]

Anti-hypertensive [18],
Allium sativum Anti-hyperlipidemic [22],
3. Garlic
(Liliaceae) Platelet aggregation
Suppressant [23]

Anthelmintic [18], Astringent [21],

Azadirachta indica
4. Neem Anti-septic [21], Purgative [21],
(Meliaceae)
Emollient [21], Anti-plaque [24]

Stomachic [18], Hepatoprotective

Andrographis paniculata [18],
5. Kalmegh
(Acanthaceae) Dyspepsia [18], Anthelmintic [18],
Bitter tonic [25], Febrifuge [25]

Galactogogue [25], Diurectic [25],

Asparagus recemosus
6. Satavatri Anti-dysenteric [25],
(Liliaceae)
Nervine disorder [26]

Berberis aristata Astringent [21], Febrifuge [21],

7. Daru haridra
(Berberidaceae) Laxative [21], In menorrhagia [21],
In Liver and spleen Diseases [27]

Hypocholesteremic [21],
Commipphora weightii Hypolipidemic [28]
8. Guggul
(Burseraceae) Anti-inflammatiry [5],
Anti-rheumatic [5]

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Colouring [5] (Food Dye)

and Flavouring [5] agent,
Crocus sativus
9. Saffron Anti-spasmodic [5],
(Iridaceae)
Stimulant [5], Emmenagogue [29],
Anti-tumor [30]

Diuretic [22],
Stomachic [31],
Nardostachys jatamansi
10. Jatamansi In constipation [31],
(Valerianaceae)
Anti-spasmodic [31],
In menstruation [31]

Anti-inflammatory [25], Diuretic [25],

11. Embelica officinalis Laxative [25], Hepatoprotective [32],
Amla
(Euphorbiaceae) Anti-oxidant [33],
Anti-fungal [34]

Anti-obesity [25],
Garcinia camboga Hypolipidemic [35],
12. Kokum
(Guttiferae) Anti-fungal [36],
Anti-ulcer [37]

Cardiac stimulant [29],

Gymnema sylvestre
13. Gudmar Anti-diabetic [38], Larvicidal [38],
(Asclepiadaceae)
Stomach ache [39], Diarrhea [39]

Amoebicidal [40],
Holarrhena antidysenterica Anti-protozoal [40],
14. Kutuja
(Apocynaceae) Anti-tuberculous [40],
In facial acne [41]

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Aromatic [21], Stimulant [21],

Ocimum teniflorum Tonic [21], Anti-oxidant [42],
15. Holi basil
(Labiatae) Anti-inflammatory [42],
Anti-diabetic [43]

Hepatoprotective [44],
Immunomodulatory [46],
Anti-inflammatory [45], Jaundice
Picrorhiza kurroa [46],
16. Kutki
(Scrophulariaceae) In periodic Fever [46],
In Nausea and anorexia [46],
Dyspepsia [46],
In bronchial asthma [47]

Aphrodiasic [18],
Plantago ovata Anti-inflammatory [18],
17. Isabgol
(Plantaginaceae) Diarrhea [18], Demulcent [21],
Laxative [25], Emollient [25]

Gynecologic disorders [27],

Saraca indica
18. Ashoka Uterine tonic [5], Sedative [5],
(Leguminosae)
In menorrhagia [5]

Anti-inflammatory [48],
Saussurea costus
19. Kuth Anti-arthritic [48], Cytotoxic [49],
(Asteraceae)
Antioxidant [50], Aphrodisiac [51],
Carminative [51], Anti-septic [51]

Sedative [52], Diaphoretic [52],

Diuretic [52], Hydragogue [52],
Expectorant [52], In dysentery [52],
Solanum nigrum
20. Makoy In Piles [53], Fever [53],
(Solanaceae)
Hypotensive [53], Antioxidant [53],
In stomach ulcer [54],
Hepatoprotective [55]

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Anti-cancer [56],
Anti-malarial [57],
Anti-periodic [58],
Anti-allergic [58],
Tinospora cordifolia Anti-spasmodic [58],
21. Guduchi
(Menispermaceae) Anti-inflammatory [58],
Anti-leprotic [58],
Anti-oxidant [58]

Sedative [25], Anti-rheumatic [25],

Diuretic [25], Anti-inflammatory [59],
Withania somnifera Anti-stress [60], Anti-tumor [61],
22. Ashwgandha
(Solanaceae) Immunomodulator [5],
Rejuvenator [62], Hypotensive [62],
Hemopoetic [62]

leaves, papian, rauwolfia guar gum, Jasmine oil, agar Table 2: Manufacturer of herbal formulation
wood oil, sandal wood oil, etc [5]. The turnover of S.N. Name of the company
herbal medicines in India as over-the-counter products, 1. Ansar Drug Laboratories, Surat
ethical and classical formulations and home remedies 2. Acis Laboratories, Kanpur
of traditional systems of medicine is about $ one billion
3. Amil Pharmaceutical, New Delhi
and export of herbal crude extract is about $ 80 million
4. ALRASIN Marketing, Mumbai
[3]. The herbal drug market in India is about $1 billion.
5. Allen Laboratories, Kolkatta
Some of the medicinal plants, whose market potential
6. Bharti Rasanagar, Kolkatta
is very high have been identified and summarized
in Table 1. 7. Dabur India Ltd., Ghaziabad
8. Dattatraya Krishan Sandu Bros., Mumbai
MEDICINAL PLANT BASED INDUSTRIES IN 9. Herbals Pvt. Ltd., Patna
INDIGENOUS SYSTEM OF MEDICINE 10. Herbo-med (P) Ltd., Kolkatta
11. The Himalaya Drug Co., Banglore
In India, It is estimated that there are about 25,000 12. Indian Herb & Research Supply co., Shharanpur
licensed pharmacy of Indian system of medicine. 13. J & J Dechane Laboratories pvt. Ltd., Hyderabad
Presently about 1000 single drugs and about 3000 14. Madona Pharmaceutical Reaearch Pvt. Ltd., Kolkatta
compound formulations are registered. Herbal industry 15. Kruzer Herbals, New Delhi
in India uses about 8000 medicinal plants. Table 2 16. Shilpachem, Indore
contains some important manufacturer of herbal 17. Hamdard (Wakf) Laboratories, Delhi
formulation [3]. However, none of the pharma has 18. Zandu Pharmaceutical Works Ltd., Bombay
standardized herbal medicines using active compounds 19. Baidyanath Ayurveda Bhavan, Jhansi
as markers linked with confirmation of bioactivity of 20. Charak Pharmaceuticals, Bo mbay
herbal drugs in experimental animal models [3]. From

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 Academic J. Plant Sci., 1 (2): 26-36, 2008

Fig. 1(a): Important indian medicinal plants vs estimated consuption per annum (Tonnes)

Fig. 1(b): Important indian medicinal plants vs estimated consuption per annum (Tonnes)

Fig. 1(c): Important indian medicinal plants vs estimated consuption per annum (Tonnes)

Fig. 1(d): Important indian medicinal plants vs estimated consuption per annum (Tonnes)
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about 8000 drug manufactures in India, there are the United Kingdom, $ 400 million; Spain, $300
however not more than 25 manufactures that can be million; the Netherlands, about $ 100 million [9].
classified as large scale manufactures. The annual
turnover of Indian herbal industry was estimated around NEED OF STANDARDIZATION
US $ 300 million in Ayurvedic and Unani medicine
was about US $ 27.7 million. In 1998-1999 again went Every Herbal Formulation must be standardized as
upto US $ 31.7 million and in 1999-2000 of the total per WHO guidelines [11]. The objective of WHO
turnover was US $ 48.9 million of Ayurvedic and guidelines is to define basic criteria for the evaluation
herbal products. Export of herbal drugs in India is of quality, safety and efficacy of drugs herbal
around $ 80 million [7]. Some of the highly consumed medicines [12]. India is one of the world’s twelve
medicinal plants are presented in the Table 3 with leading biodiversity centers with the presence of over
reference to their turnover [1]. Figure 1(a-d) are the 45,000 different plant species, out of this about 15,000-
graphical representation of some highly consumed 20,000 plants have good medicinal properties of which
Indian medicinal plants Vs estimated consumption per only about 7,000-7,500 are being used by traditional
annum (Tonnes). practitioners. The Siddha system of medicine uses
around 600, Ayurveda 700, Unani 700 and modern
WORLD WIDE HERBAL TRADE medicine about 30 plants species. Projection is being
made that after information technology, herbal
The global market for herbal medicines currently technology will be India’s biggest revenue earner [13].
stands at over $60 billion annually. The sale of herbal India has a great role to play, as supplier of herbal
medicines is expected to get higher at 6.4% an average products not only to meet the domestic needs, but also
annual growth rate [8]. Due to the contribution of to take advantage of the tremendous export potential.
numerous significant factors, the market of herbal To be a global supplier of herbal medicines conforming
medicines has grown at an expressive rate worldwide. to international specification the following aspects are
Some of them are: preference of consumers for natural still demanding the attention:
therapies; concern regarding undesirable side effects of
modern medicines and the belief that herbal drugs are • Proper botanical identification of all medicinal
free from side effects, since millions of people all over plants in Indian System of Medicine. All herbal
the world have been using herbal medicines for ingredients in preparation to be specified by their
thousands of years; great interest in alternative botanical names besides their popular/common
medicines; preference of populations for preventive names.
medicine due to increasing population age; the belief • Processing of medicinal plants in a scientific,
that herbal medicines might be of effective benefit in economic and safe way using similar ones used for
the treatment of certain diseases where conventional modern drugs.
therapies and medicines have proven to be inadequate; • Isolation and chemical characterization of acute
tendency towards self-medication; improvement in ingredients including inorganic constituents,
quality, proof of efficacy and safety of herbal medicines wherever possible.
and high cost of synthetic medicines [9]. • Pharmacological and clinical studies to ascertain
According to World Health Organization, herbal their efficacy and safety.
medicines are lucrative globally and they represent a • Standardization to ensure uniformity. The use of
market value of about US$ 43 billion a year [10]. medicinal plants in combination to be limited to
According to an estimate in 1991, the herbal medicine facilitate analysis and to apply quality control and
market in the European countries was about $ 6 billion, standardization parameters to herbal drug
with Germany accounting for $ 3 billion, France $ 1.6 preparations.
billion and Italy $ 0.6 billion while in other countries • Documentation of research.
was 0.8 billion. In 1996, the herbal medicine market in
the European countries was about $ 10 billion, in USA Such scientifically aspects will project herbal
about $ 4 million, in India about $ 1.0 billion and in medicine in a proper perspective and help in sustained
other countries was $ 5.0 billion [6]. In 1997, the global market [14]. An estimate of WHO demonstrates
European market alone reached about $ 7.0 billion. The about 80% of world population depends on natural
German market corresponds to about 50% of the products for their health care, because of side effects
European market, about $ 3.5 billion. This market is and high cost of modern medicine [2]. World Health
followed by France, $ 1.8 billion; Italy, $ 700 million; Organization currently recommends and encourages

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Table 3: Important plants with reference to trade

S.N. Plant name Common name Plant part Estimated consumption (Tones)
1. Aconitum heterophyllum Atis Root 20
2. Acorus calamus Vacha Rhizome 150
3. Aloe vera Aloes Leaf 200
4. Anacyclus pyrethrum Akkarkara Fruit 50
5. Andrographis paniculata Kalmegh Aerial part 250
6. Asparagus recemosus Satavatri Root 500
7. Berberis Aristata Daru haldi Root 500
8. Cedrus deodara Deodar Heart Wood 200
9. Chlorophytum borivilianum Safed musli Root 25
10. Cinnamomum zeylanicum Dalchini Bark 200-300
11. Commipphora wrightii Guggul Gum resin 500
12. Crocus sativus Keasr Stigma 5
13 Cyprus rotundus Nagar motha Rhizome 150
14. Eclipta alba Bhringraj Aerial part 500
15. Elettaria cardamomum CAedamon Seed 60
16. Embelia ribes burm Vidanga Fruit 200
17. Glycyrrhiza glabra Milathi Root 5000
18. Hedychium spicatum Kapurkachri Rhizome 400
19. Hemidesmus indicus Anantmool Root 200
20. Holarrhena pubescens Kurchi Bark 150
21. Justicia adhatoda Vasaka Leaf 500
22. Mucuna pruriens Kaunch beej Seed 200
23. Myristica fragrans Jaiphal Fruit 500
24. Nardostachy gradiflora Jatamansi Root 200
25. Embelica officinalis Amla Fruit 10000
26. Picrorhiza kurroa Kutki Root 200
27. Piper cubeba Cubeb Fruit 150
28. Piper longum Pipramul Fruit 200
29. Piper nigrum Black pepper Fruit 150
30. Plumbago zeylanica Chitrak Root 500
31. Pueraria tuberose Vidarikanda Root 200
32. Saraca indica Ashoka Bark 1200
33. Senna Alexandrian Senna Leaf & pod 1000
34. Strychnos nux vomica Luchia Seed 1000
35. Swertia chirayta Chirayita Whole plant 300
36. Syzygium aromaticum Clove Flower bud 150
37. Syzygium cumini Jaman beej Seed 300
38. Trachyspermum ammi Ajwain Fruit 200
39. Terminalia bellrica Bahera Fruit 500
40. Terminalia chebula Harar Fruit 500
41. Tinospora cardifolia Guduchi Stem 1000
42. Valeriana jatamansi Tagar Root & Rhizome 150
43. Withania somnifera Ashwgandha Root 500
44. Zingiber officinalis Ginger Rhizome 500

traditional herbal remedies in natural health care besides a healthy 11% annual growth rate and the
programs because these drugs are easily available increasing export potential has attracted several
at low cost and are comparatively safe. People’s large and medium scale pharmaceutical industries
faith in such remedies is reflected by a whooping and even multinationals to jump on to the band
turnover of 450 Crores annually in herbal market wagon [14].
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DEVELOPMENT IN HERBAL MEDICINE become more and more expensive therefore, we have to
INDUSTRY WITH REFERENCE TO TRADE develop technologies to essentially introduce and
integrate herbal medicine system in our health care.
There is great demand for herbal medicine in the There is an enormous scope for India also to emerge as
developed as well as developing countries like India, a major player in the global herbal product based
because of their wide biological activities, higher safety medicine. Let us hope that drug manufactured in
of margin than the synthetic drugs and lesser costs [15]. accordance with principles of Ayurveda, Siddha and
Medicinal plants play a great role in food supplements Unani will reach new horizons and make them the best
for care as well as in personal care of the mankind in the world if the quality of the herbal drugs is
alongside the therapeutically active substances, thus maintained, efficacy would it self be maintained and
medicinal plant based industry is a promising sector and then there is nothing to stop them from competing with
enormous economic growth potential. Nutraceuticals the modern medicine with added advantages of fewer
(Health Food) are in great demand in the developed side effects and lower costs.
world particularly USA and Japan. Nutraceutical
market in USA alone is about $ 80-250 billion, with a ACKNOWLEDGEMENT
similar market size in Europe and Japanese sales worth
$ 1.5 billion [5]. Such huge markets have arisen The authors are thankful to the council for
because of the Dietary Supplement Health Education Industrial and Scientific Research New Delhi for
Act passed by USA in 1994, which permits financial assistance and constant encouragement. The
unprecedented claims to be made about food or the help render by Mr. Lalit Tyagi is greatly appreciated.
dietary supplement’s ability about health benefits
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