US Tariff Cut to Boost India's AYUSH, Nutraceutical Exports: Industry 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.

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.

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.

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The US has also legally withdrawn the additional 25 per cent ad valorem duty under Executive Order 14329, effective February 7, 2026, providing further relief to Indian exporters.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