India-US trade deal to boost AYUSH, nutraceutical sectors: Expert

The India-US Interim Trade Deal will boost India's AYUSH and nutraceutical sectors by slashing US tariffs from 50% to 18%. The move brings immediate relief to exporters who were facing severe pressure from high tariffs and low margins.

India's AYUSH and nutraceutical sectors are expected to see a significant boost following the reduction in US tariffs under the India-US Interim Trade Deal, Founder & Director of Pharmanza Herbal Pvt Ltd, Lal Hingorani, said in an exclusive conversation with ANI.

Tariff Reduction Brings Immediate Relief

Commenting on the development, Hingorani said the industry had been under severe pressure due to high tariffs and low operating margins. "People were waiting for this change. Our industry, particularly the AYUSH and nutraceutical sectors, was affected because it is very small and margins are limited. A 50 per cent tariff was hitting us really hard," he said.

He added that the reduction in tariffs to 18 per cent would bring immediate relief to exporters. "With the reduction to 18 per cent, we will see a significant benefit, but we still expect it to return to the normal level that existed before," Hingorani noted.

Pricing Pressures Remain a Concern

Highlighting sector-specific challenges, he pointed out that pricing pressures remain a key concern. "One factor specific to our industry is pricing. Buyers were demanding very low prices, but given the FDA regulations and other requirements, it is simply not possible to manufacture goods at those prices," he said.

US: A Key Market for Indian Herbal Products

AYUSH encompasses traditional systems of medicine such as Ayurveda, Yoga, Unani, Siddha, and Homeopathy.

According to data from the Ministry of AYUSH, the Ayurveda Export Promotion Council (AYUSHEXCIL), and trade analysis, India's AYUSH and herbal product exports to the US stood at approximately USD 688.89 million in 2024-25, registering a growth of 6.11 per cent. The US remains the largest market for Indian AYUSH and herbal products, accounting for a significant share of total exports.

The top exported products include Ashwagandha, which leads the list, followed by Turmeric, Ginger, Neem, Triphala, Tulsi, Brahmi, and Shatavari. Key export components comprise Ayurvedic products, Unani, Siddha, Sowa Rigpa medicines, and a wide range of herbal supplements.

Framework of the Interim Trade Deal

India and the US announced the interim trade deal framework in a joint statement on February 6, 2026. The framework is positioned as the first step towards a broader Bilateral Trade Agreement (BTA).

Under the arrangement, the US will apply a reciprocal tariff rate of 18 per cent on Indian goods and has outlined a path for the removal of reciprocal tariffs on a wider set of products if the Interim Trade Agreement (ITA) is successfully concluded.

Beyond tariff reductions, both countries have agreed to address non-tariff barriers, establish rules of origin, strengthen supply chain resilience, and work towards ambitious digital trade rules as part of the proposed BTA.

The US has also legally withdrawn the additional 25 per cent ad valorem duty under Executive Order 14329, effective February 7, 2026, providing further relief to Indian exporters. (ANI)

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