Start Herbal Business in India

How to Start Medical Plant Export Business in India?

Online Legal India LogoBy Online Legal India Published On 01 Dec 2020 Updated On 08 Apr 2025 Category IEC

In recent times, interest in natural remedies and traditional healing has grown significantly, making the herbal and medicinal plant business a promising opportunity. India has a rich history in Ayurveda and herbal medicine, leading to a rising preference for plant-based treatments. This increasing demand is driving the growth of the herbal, medicinal, and medical plant industry both in India and worldwide.

This business of herbal, medicinal, and medical plants isn’t just about growing plants. It is about understanding their medicinal value and how they can be used effectively. If you don’t have expertise in herbal medicine, you can always work with experienced herbalists to guide you. Some plants, like Aloe Vera, Ashwagandha, Brahmi, Isabgol, Senna, and Tulsi, are widely used, easy to grow, and highly profitable. Your earnings may vary on what you cultivate and on what scale.

If you’re thinking of stepping into the herbal, medicinal, and medical plant industry, it is very important to be well-prepared. In this article, you will go through the key things you need to know before starting a herbal, medicinal, and medical plant export business, which will help you make informed decisions and set your business up for success.

Herbal, Medicinal, and Medical Plants: Key Differences

  1. Herbal Plants

These are plants used for general wellness or traditional remedies. They may not always have strong scientific backing but are commonly found in Ayurveda, Siddha, and Unani systems. Example: Tulsi (Holy Basil), used for boosting immunity or in-home remedies for cough and cold.

  1. Medicinal Plants

These plants contain bioactive compounds that are scientifically proven to help prevent or treat diseases. Their benefits are usually backed by research, and they form the base of many Ayurvedic, Siddha, and even some modern pharmaceutical drugs. Example: Ashwagandha, Neem, or Amla are all used for treating specific health conditions.

  • The Botanical Survey of India reports that India has over 8,000 species of medicinal plants and herbs.
  • The National AYUSH Mission supports the cultivation of 140 priority medicinal plant species under various schemes.
  1. Medical Plants

This term is often used interchangeably with medicinal plants, but in a stricter sense, medical plants refer to those that are used in formal medical settings, which include modern allopathic medicine, after going through extensive lab testing, approvals, and dosage standardization. Example: Foxglove the source of digitalis used for heart conditions, or Cinchona which is used to make quinine for malaria.

Category

Purpose

Usage System

Example

Herbal Plants

General wellness/traditional use

Ayurveda, Folk

Tulsi, Mint

Medicinal Plants

Disease treatment (researched)

Ayurveda & Pharma

Neem, Ashwagandha

Medical Plants

Used in clinical/allopathic drugs

Modern Medicine         

Foxglove, Cinchona

 

If you want to explore more about cultivation, schemes, or verified lists of medicinal plants, you can visit:

  • National Medicinal Plants Board
  • AYUSH Ministry Portal

Top 10 Herbal, Medicinal, and Medical Plants for Export Business in India

India has always been a treasure of herbal, medicinal and medical plants. Ayurveda and herbal remedies are an essential part of our traditional healthcare system. In recent years, the global demand for natural and organic health products has escalated. For this Indian herbal medicines have found a strong foothold in international markets. From boosting immunity to improving digestion and skin care, Indian medicinal plants are making a mark worldwide. Here are ten of the most in-demand medicinal plants and herbal medicines that India exports.

  1.  Ashwagandha (Indian Ginseng)

Ashwagandha also known as Indian Ginseng is one of the most well-known herbs in Ayurveda. It is often used to reduce stress, boost energy, and improve overall well-being. It has gained huge popularity in countries like the USA, Germany, and Canada, where it is widely used in herbal supplements and wellness products.

  1. Tulsi (Holy Basil)

Almost every Indian household has a Tulsi plant which is also known as Holy Basil, and for good reason! It is mainly known for its immunity-boosting, anti-inflammatory, and stress-relieving properties. Tulsi-based herbal teas, essential oils, and extracts are in high demand in the global market. After the pandemic, more people are turning towards natural ways to strengthen their immune systems.

  1.  Aloe Vera

Aloe Vera is not only great for skincare but also great for digestion and overall health. The gel, juice, and extracts are exported to countries like the USA, UAE, and Europe, where it is used in skincare, cosmetics, and health supplements. With its soothing and healing properties, Aloe Vera is one of India’s top herbal export herbs.

  1.  Giloy (Heart-Leaved Moonseed)

Giloy the heart leaved moonseed. This herbal plant is a powerhouse for boosting immunity and fighting infections. It became especially popular during the pandemic and is now exported in various forms like capsules, powders, and liquid extracts.

  1.  Senna

Senna is widely used as a natural laxative and digestive aid. Countries in Europe and the Middle East import Senna leaves and pods for herbal laxative formulations. With people looking for natural alternatives to synthetic medicines, Senna has carved out a significant market for itself.

  1.  Neem

Neem is famous for its antibacterial and antifungal properties, making it a key ingredient in herbal medicines, skincare, and even organic pesticides. Countries like the USA, UK, and Australia import neem-based products, including neem oil, powder, and capsules.

  1.  Isabgol (Psyllium Husk)

If you’ve ever had digestive issues, you’ve probably heard of Isabgol. Isabgol helps in digestion and it also helps you regulate cholesterol. Even it can help you control diabetes. This natural fiber supplement helps with digestion and weight management. India is the largest producer of Isabgol, and it is exported in large quantities to the USA, Canada, and European countries.

  1.  Brahmi

Brahmi is known for its quality as a natural brain booster. It is widely used in Ayurvedic medicine for improving memory, reducing anxiety, and enhancing cognitive function. With the growing popularity of brain health supplements, Brahmi is being exported in the form of powders, capsules, and herbal teas to several countries.

  1.  Turmeric (Haldi)

Turmeric has taken the world by storm. This is because of its powerful anti-inflammatory and antioxidant properties. Curcumin, the active ingredient in turmeric, is known to help with joint pain, skin health, and overall wellness. The USA, Canada, and Europe are major importers of turmeric extracts, powders, and capsules.

  1. Lemongrass

Lemongrass is a great addition to herbal tea. It also has detoxifying and anti-inflammatory benefits that can help you deal with lots of medical problems. It is widely exported in the form of essential oils and dried leaves, particularly to European and Southeast Asian countries, where it is used for relaxation, digestion, and even aromatherapy.

Why India is a Global Leader in Herbal Medicine Exports?

India has a diverse climate, which is deep-rooted in the knowledge of Ayurveda. The Indian government supports the cultivation of medicinal plants cultivation. This has made India one of the top exporters of herbal, medicinal, and medical plants or products. India is well-positioned to expand even further in this industry, as the global preference for natural and organic health products is growing day by day.

If you want to enter the herbal medicine business, this can be the perfect time. The demand for herbal, medicinal, and medical plants or products is high. The market of the herbal, medicinal, and medical plants or products is growing. India's rich tradition of medicinal plants offers an incredible opportunity for success in the global marketplace.

How to Export Herbal and Medicinal Plants from India?

India is one of the largest producers of herbal and medicinal plants, with a rich history of Ayurveda, Unani, and traditional medicine systems. In this rising global demand for natural remedies, it can be a great business opportunity to export these plants. Anyway, before you start a herbal, medicinal, and medical plant business in India, you need to follow certain steps to ensure compliance with government rules and regulations to operate international trade smoothly. A simplified guide to help you through the process is mentioned below.

  1.  Set Up Your Business Properly

Before you can start exporting, you need to establish your business legally. For this, you have to follow some steps mentioned below:

  • You have to register your company under the Companies Act, 2013 as a sole proprietorship, partnership firm, or private limited company. This registration depends on the size and type of your business.
  • Get a unique business name and logo, which will help you give a unique identity and establish a brand.
  • After that you have to register for GST and open a current bank account for business transactions.
  1.  Obtain the Importer Exporter Code (IEC)

The Importer Exporter Code (IEC) is a mandatory requirement for anyone who wants to export goods from India. You can apply for it online through the Directorate General of Foreign Trade (DGFT) website. Without this Importer Exporter Code (IEC) code, you won’t be able to ship your products internationally.

  1. Ensure Your Products Meet Export Standards

Different countries have different quality and safety standards for herbal and medicinal plants. Before you start the export of your goods you must do the following:

  • You have to verify that your plants meet the importing country’s regulations.
  • You should ensure that your products comply with India’s export policies. There are some plants that are restricted under the Wild Life (Protection) Act, 1972 last updated in the year 2022, or listed under the Convention on International Trade in Endangered Species (CITES). That’s why you should verify before proceeding.
  1.  Prepare the Necessary Documents

The process of export involves a lot of paperwork. If you miss even one document it can delay your shipments. Below are some documents you need during this process of export:

  • Invoice & Packing List: You have to provide the details about the goods and their packaging you will export.
  • Shipping Bill or Bill of Export: The shipping bill or bill of export is a crucial document for customs clearance, especially if you are operating the shipment via sea.
  • Airway Bill or Bill of Lading: Proof of shipment for air cargo. This is the document you need to provide if you operate the shipment via airway.
  • Certificate of Legal Possession: This document will be required for certain plant species to confirm legal procurement from the Divisional Forest Officer (DFO).
  • CITES Permit: If the plant you are going to export is protected under CITES, you will need special permissions to export it. Without permission, if you export such a plant you can face consequences.
  • You may be required to provide any additional documents if it is required by the importing country.
  1.  Complete Customs Procedures

Once your documents are ready, you need to submit them through the Indian Customs Electronic Gateway (ICEGATE) for clearance. Ensure that all the details you are providing are accurate to avoid any delays. The customs officers will inspect your shipment to confirm compliance before they allow it to be exported.

  1.  Follow Export Policies and Stay Updated

Export rules and regulations can change, so it is very important to stay updated with the latest guidelines from government bodies like the Directorate General of Foreign Trade (DGFT), Agricultural and Processed Food Products Export Development Authority (APEDA), etc. These organizations can also help you with market insights, incentives, and support.

Benefits of Herbal Medicines and Medicinal Plant Export Business in India

  1. India has long been known for its rich tradition of herbal medicine, with ancient systems like Ayurveda, Siddha, and Unani using medicinal plants for healing. In recent times, more people across the world seek natural and chemical-free health solutions for the solution of the problem. For this demand for herbal medicines is skyrocketing. This has opened up exciting opportunities for businesses in India to not only meet local needs but also export medicinal plants and herbal products globally.
  2. One of the biggest reasons why people prefer herbal medicines is their natural healing Capacity. Unlike synthetic drugs that only target symptoms, herbal remedies work holistically, they boost immunity, improve overall health, and address the root cause of illnesses. As a result, more people are switching to herbal alternatives for long-term wellness.
  3. Another major advantage is that herbal medicines have minimal side effects. Since they are made from natural ingredients, they are generally gentler on the body compared to chemical-based medicines. This makes them a popular choice for those who are looking to avoid the harmful effects of synthetic drugs.
  4. From a business perspective, the export of medicinal plants and herbal products is proving to be highly profitable. India is home to a variety of medicinal plants like Aloe Vera, Ashwagandha, Tulsi, and Brahmi, which are in high demand worldwide. Countries looking for sustainable and organic healthcare solutions are increasingly moving towards the Indian herbal products, which makes it a great time to enter the export market.
  5. The Indian government also supports this industry by promoting the sustainable cultivation and export of medicinal plants. With proper planning, quality control, and knowledge of global markets, businesses in this sector can not only earn significant profits but also contribute to spreading India’s traditional healing practices across the world.

The demand for herbal and medicinal plants in global markets is on the rise, which makes it an excellent opportunity for Indian exporters. However, you should ensure your business complies with the guidelines, rules and regulations implemented by the Government. To meet all the compliances as well as business registration for herbal medicinal plants in India, contact Online Legal India. They have experts to file all them for you.


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