This document provides guidance on requirements for starting a herbal medicine business in India. It outlines key considerations such as conducting market research to understand target customers and trends, gaining knowledge of herbs and their properties, obtaining necessary licenses and registrations from regulatory authorities, selecting an appropriate business location, and implementing marketing strategies. The herbal medicine industry in India is regulated under laws and agencies that govern manufacturing, labeling, and safety of Ayurvedic, Siddha, and Unani herbal products.

1. Requirements for Herbal Medicines
Business

2. Consider These Following Things Before
Starting A Herbal Product Business
• Market Research
• Know your herbs
• Licensing & Registration
• Location
• Marketing

3. • Herbal Products are ancient healing tools with
important modern applications. Consumers
worldwide prefer herbal beauty products such as
skin care products, hair care products, make-up
products and others.
• The Indian beauty industry has seen huge growth
in the last 10 years, simply by paying close
attention to its shoppers’ needs.
• The market share for herbal beauty products has
been increased considerably as compared to
synthetic beauty products.
• So if you are thinking of starting a herbal
business, consider these following things.

4. Market Research
• A herbal business is just like any other
business. The first and foremost thing to do
before starting any business is to conduct a
market research.
• You are required to know about the target
audience, the challenges and trends in this
sector.
• Knowing your market will increase the success
rate of your herbal business.

5. Know your herbs
• Before venturing into a herbal business, you
should have the basic knowledge of herbal
remedies and applications.
• You need to know about each herb that you
are using. Ensure that your products are both
safe and effective.
• You also need to understand the
contradictions and possible interactions of the
herbs that you will be using.

6. Licensing & Registration
• Contact your city and state revenue
departments and get the licenses necessary to
run a herbal business.
• Follow FDA labelling requirements for your
herbal business.
• FDA labelling is required to designate them as
food supplements rather than medicines.
• Research about the herbs which the FDA
considers unsafe, such as ephedra, and do not
sell them.

7. • In India, herbal medicines are regulated under the Drug and
Cosmetic Act (D and C) 1940 and Rules 1945, where regulatory
provisions for Ayurveda, Unani, Siddha medicine are clearly laid
down. Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha
and Homoeopathy (AYUSH) is the regulatory authority and mandate
that any manufacture or marketing of herbal drugs have to be done
after obtaining manufacturing license, as applicable.
• The main focus of this department is on development of Education
and Research in Ayurveda, Yoga and Naturopathy, Unani, Siddha
and Homoeopathy systems. Laws and regulations on herbal
medicines are partly the same as those for conventional
pharmaceuticals. The D&C Act extends the control over licensing,
formulation composition, manufacture, labelling, packing, quality,
and export.
• In India, manufacturing, marketing, promotion of ASU drugs is
controlled by Ayush.

8. CHAPTER: IV A
AYURVEDIC, SIDDHA AND UNANI] DRUGS
• 33EEB. Regulation of manufacture for sale of Ayurvedic, Siddha and Unani
drugs.—No person shall manufacture for sale or for distribution any
Ayurvedic, Siddha or Unani drug except in accordance with such
standards, if any, as may be prescribed in relation to that drug.
• 33EED. Power of Central Government to prohibit manufacture, etc., of
Ayurvedic, Siddha or Unani drugs in public interest.—Without prejudice to
any other provision contained in this Chapter, if the Central Government is
satisfied on the basis of any evidence or other material available before it
that the use of any Ayruvedic, Siddha or Unani drug is likely to involve any
risk to human beings or animals or that any such drug does not have the
therapeutic value claimed or purported to be claimed for it and that in
the public interest it is necessary or expedient so to do then, that
Government may, by notification in the Official Gazette, prohibit the
manufacture, sale or distribution of such drug.]
• Penalty for manufacture, sale, etc shall be punishable with imprisonment
for a term which may extend to one year and with fine which shall not be
less than twenty thousand rupees or three times the value of the drugs
confiscated, whichever is more;

9. Location
• Set up a space for your herbal business. If you will
be growing herbs, lease or buy a plot of land, as
well as fertilizer and seeds.
• If you will be retailing herbs, lease a storefront in
a part of town frequented by your target market,
such as an affluent area with yoga studios and
natural food stores.
• Outfit your retail location with shelves for
inventory, books and accessories such as mortar
and pestle sets.
• jars, scoops and labels for bulk herbs, as well as
packages of herbs and tinctures, or liquid herbal
preparations.

10. Marketing
• There are various marketing strategies you can
use in promoting your business.
• Market your herbal business by advertising in
venues that appeal to your target market.
• Connect with naturopaths and other holistic
health practitioners who recommend herbal
products to their clients.
• Also, create a creative and informative
website describing your products and services.

11. Thank You