India's traditional medicine systems — Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy (AYUSH) — received formal recognition in two landmark bilateral trade agreements finalised in late December 2025: the India-Oman Comprehensive Economic Partnership Agreement (CEPA) and the India-New Zealand Free Trade Agreement (FTA). Both agreements include dedicated annexures on health-related services and traditional medicine. The India-Oman CEPA is historically significant as the first international trade agreement in which any country has extended commitments on traditional medicine across all four modes of supply (cross-border trade, consumption abroad, commercial presence, and movement of natural persons). This creates a structured institutional framework for AYUSH services and products in Oman. The India-New Zealand FTA similarly includes dedicated cooperation provisions on AYUSH and Indian traditional knowledge, with explicit opportunities for Yoga instructors and other AYUSH practitioners to access the New Zealand market. India's AYUSH and herbal product exports grew 6.11 per cent from $649.2 million in 2023-24 to $688.89 million in 2024-25, demonstrating the sector's global traction. These recognitions are expected to accelerate AYUSH-related service exports, attract investment into herbal pharmaceuticals and wellness, and reinforce India's soft power through traditional knowledge diplomacy. For Rajasthan, which has clusters of Ayurvedic manufacturing and herbal cultivation (particularly in Barmer, Nagaur, and the Aravalli belt), such trade recognition presents concrete export-promotion possibilities.
AYUSH Systems Gain Formal Recognition in India's Trade Pacts with Oman (CEPA) and New Zealand (FTA): New Opportunity for Traditional Medicine and Wellness Sector
India's traditional medicine systems — Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy (AYUSH) — received formal recognition in two landmark bilateral trade agreements finalised in late December 2025: the India-Oman Comprehensive Economic Partnership Agreement (CEPA) and the India-New Zealand Free Trade Agreement (FTA). Both agreements include dedicated annexures on health-related services and traditional medicine. The India-Oman CEPA is historically significant as the first international trade agreement in which any country has extended commitments on traditional medicine across all four modes of supply (cross-border trade, consumption abroad, commercial presence, and movement of natural persons). This creates a structured institutional framework for AYUSH services and products in Oman. The India-New Zealand FTA similarly includes dedicated cooperation provisions on AYUSH and Indian traditional knowledge, with explicit opportunities for Yoga instructors and other AYUSH practitioners to access the New Zealand market. India's AYUSH and herbal product exports grew 6.11 per cent from $649.2 million in 2023-24 to $688.89 million in 2024-25, demonstrating the sector's global traction. These recognitions are expected to accelerate AYUSH-related service exports, attract investment into herbal pharmaceuticals and wellness, and reinforce India's soft power through traditional knowledge diplomacy. For Rajasthan, which has clusters of Ayurvedic manufacturing and herbal cultivation (particularly in Barmer, Nagaur, and the Aravalli belt), such trade recognition presents concrete export-promotion possibilities.
Key facts
- AYUSH systems gained formal recognition in India-Oman CEPA and India-New Zealand FTA.
- India-Oman CEPA is the first international trade agreement to include AYUSH in a dedicated annexure.
- Both agreements include provisions for health-related services and traditional medicine.
- AYUSH covers Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy systems.
- The recognition opens new export opportunities for India's traditional medicine and wellness sector.
- India's AYUSH practitioners and wellness products gain preferential market access in Oman and NZ.
Mains angle
Q: Evaluate the significance of AYUSH formal recognition in India-Oman CEPA and India-New Zealand FTA for expanding India's traditional medicine exports and Rajasthan's herbal manufacturing clusters.
Answer (50 words):
Finalised in December 2025, the India-Oman CEPA became the first international trade agreement extending commitments on traditional medicine across all four modes of supply. The parallel India-New Zealand FTA opens markets to Yoga instructors. AYUSH exports grew 6.11 percent to $688.89 million in 2024-25, benefiting Rajasthan's Barmer-Nagaur clusters.
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What does AYUSH stand for in the context of India's traditional medicine systems?
AYUSH stands for Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy.
Source: Business Standard / PIB / FreePressJournal / IBEF / India Shipping News / India-Briefing
Frequently asked questions
What is AYUSH and which systems does it cover?
AYUSH is an acronym for India's traditional medicine systems: Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy. These systems are regulated under the Ministry of AYUSH established in 2014, and represent India's centuries-old indigenous healthcare traditions.
What is the India-Oman CEPA and why is it historically significant for AYUSH?
The India-Oman Comprehensive Economic Partnership Agreement (CEPA), finalised in December 2025, is the first international trade agreement in the world to include AYUSH systems in a dedicated annexure on health-related services and traditional medicine. This gives AYUSH practitioners and wellness products formal, treaty-level recognition and preferential market access in Oman.
What is a Comprehensive Economic Partnership Agreement (CEPA) and how does it differ from an FTA?
A Comprehensive Economic Partnership Agreement (CEPA) is a broader form of a Free Trade Agreement (FTA) that covers not just goods (tariff reduction) but also services, investment, intellectual property, and regulatory cooperation. The India-Oman CEPA and the India-New Zealand FTA both include provisions for traditional medicine, but the CEPA framework offers deeper and wider integration across economic sectors.
What export opportunities does the AYUSH recognition in trade agreements open for India?
The formal recognition of AYUSH in the India-Oman CEPA and India-New Zealand FTA creates preferential market access for Indian AYUSH practitioners (e.g., Ayurveda doctors and yoga instructors) to work in Oman and New Zealand, and for AYUSH wellness products (herbal medicines, supplements) to be exported at reduced or zero tariffs. This is significant as India's AYUSH exports were valued at USD 688.89 million in 2024-25.
How does international recognition of AYUSH relate to India's soft power and diplomatic strategy?
AYUSH, particularly Yoga, has become a key pillar of India's soft power diplomacy since the United Nations recognised June 21 as International Yoga Day in 2015 (proposed by India). Embedding AYUSH in bilateral trade agreements like the India-Oman CEPA and India-New Zealand FTA converts this cultural capital into economic leverage, enhancing India's global standing in the health and wellness sector while deepening bilateral ties.
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