Professional Documents
Culture Documents
of
increased mobility of
world through uninhibited trade and financial flows as also through mutual
exchange of technology and knowledge (Goyal, 2006:166). It also contains
free inter country movement of labor. Globalization in its literal sense is the
process of globalizing, transformation of some things or phenomena into
global ones. It can be described as a process by which the people of the world
are unified into a single society and function together. This process is a
combination of economic, technological,socio-cultural and political forces.
Globalization is very often used to refer to economic globalization that is
integration of national economies into the international economy through
trade, foreign direct investment, capital flows, migration, and the spread of
technology (Dave, 2007).Herman E. Daly argues that sometimes the terms
internalization and globalization are used interchangeably but there is a slight
formal difference. The term internalization refers to the importance of internal
trade, relations, treaties etc.International means between or among nations.
Globalization means erasure of national boundaries for economic purposes.
International trade becomes interregional trade.In the context of India this
implies opening up the economy to foreign direct investment by providing
facilities to foreign companies to invest in different fields of economic activity
in India; removing constraints and obstacles to the entry of MNCs in India,
allowing Indian companies to enter into foreign collaborations and also
encouraging them to set up joint ventures abroad, carrying out massive import
liberalization programmes by switching over from quantitative restrictions to
tariffs and import duties.
History of Globalization
The word globalization has been used by economists since 1981, however this
concept did not become popular until the later half of the 1980s and
1990s.Globalisation began a bit before the turn of the 16th century in Portugal.
The countrys global explorations in the 16th century linked continents,
economies and cultures as never before.
a long time to reach the pre-world war I level. Most of the developing
countries which gained independence from the colonial rule in the immediate
post-world war II period followed an import substitution industrialization
regime. The Soviet bloc countries were also shielded from the process of
global economic integration. However in the last two decades the process of
globalization gathered the momentum. The former Soviet bloc countries are
getting integrated with the global economy. More and more developing
countries are turning towards outward oriented policy of growth. Rapid pace
of globalization observed today is an outcome of new information technology
which has influenced market integration, efficiency and industrial
organization. Globalization of financial markets has far outpaced the
integration of product markets.
Modern Globalization
Globalization in the era since World War II was first the result of planning by
economists, business interests, and politicians who recognized the costs
associated with
protectionism
economic
The Uruguay Round (1984 to 1995) led to treaty to create the World Trade
Organization (WTO), to mediate trade disputes and set up a uniform platform
of trading. Other bi-and multilateral trade agreements, including sections of
Europes Maastricht Treaty and the North American Trade Agreement
(NAFTA) have also been signed in pursuit of the goal of reducing tariffs and
barriers to trade.
World exports increased from 8.55% of gross world product in 1970 to 16%
of gross world product in 2001.
6.2 Measuring Globalization
Looking specifically at economic globalization, it can be measured in
different ways. These four ways are four economic flows that characterize
globalization:
a) Goods centreand services, e.g. exports plus imports as a proportion of
national income or per capita of population.
b) Labour/people, e.g. net migration rate, inward or outward migration flows,
weighted by population.
c) Capital, e.g. inward or outward direct investment as a proportion of national
income or per head of population
d) Technology populations, e.g. international research and development flows,
proportion of using particular invention.
African
Republic
and
Burundi.
Other
measures
Indian economy faced major crisis in July 1991, when the stock of foreign
currency was approximately $ 1 billion. Inflation increased to an annual rate
of 17 percent; fiscal deficit was also quite high and foreign investors and NRI
lost confidence in Indian economy. Along with this domestic crisis, many
unpredictable changes swept the economies of nations in Western and Eastern
Europe, South East Asia,Latin America and elsewhere, around the same time.
These economic changes at home and abroad made it mandatory to bring total
change in our economic policies and programmes. Major measures as apart of
the liberalization and globalization strategy in the early nineties included the
following:
Non Resident Indian Schemes: General policy and facilities for foreign
direct investment as available to foreign investors/companies are fully
The reduction of the peak customs tariff from over 300 percent prior to
30 percent rate that applies now.
exerts
pressure
on
the
environment.
Domestic
At the firm level: The global entrepreneur must get the desired challenges.
He must be able to stretch himself and upgrade his skills by in house
training.
continues to grow at the projected rate then it will have enough wealth, industry
and technology to compete with the United States for the position of leading
world power. The European Union, Russian Federation and India are among the
other already established world powers which may have the capacity to influence
future world politics.
Informational increase in information flows between geographically remote
locations is a technological change observed in the process of globalization.
Advent of fiber optic communications,satellites, and increased availability of
internet facilitated the revolution in information and communication technology.
Cultural growth of cross cultural contacts, advent of new categories of
consciousness and identities such as globalism, which embodies cultural
diffusion, the desire to consume and enjoy foreign products and ideas and adopt
new technology and practices.
Ecological-globalization leads to environmental challenges like climate change,
cross boundary water and air pollution, over-fishing of the ocean, and the spread
of invasive species, which cannot be solved without international cooperation.
Many factories are built in developing countries where thy can pollute freely.
Poorer countries have to suffer in this process whereas the wealthier countries are
at the benefit.
Social-Globalization facilitated increased circulation of people of all nations with
fewer restrictions. But only the people of wealthier nations can afford
international travel due to of rising costs of fuel and transport.
Transportation- Technological advancement decreased the traveling time, but
again it is accessible to few rather than many. Globalization resulted in
disproportionate inequitable distribution of resources rather than a benefit to
overall humanity.
International Cultural Exchange- Globalization has spread multiculturalism
and provided better individual access to cultural diversity. The imported culture
can easily supplant the local culture causing reduction in diversity through
hybridization. The most prominent form of this is westernization.Globalization
facilitated greater international travel and tourism for those who can afford
Negative Effects
Though the world as a whole is benefitted from globalization still there are some
negative and marginalizing effects of globalization.
India opened up the economy as a result of major crisis due to foreign exchange
crunch. Major measures initiated as a part of the liberalization and globalization
strategy in the early nineties included scrapping of the industrial regime, reduction
in the number of areas reserved for the public sector, amendment of monopoly
and restrictive trade practices act, start of the privatization programme, reduction
in tariff rates and change over to market determined exchange rates. Over the
years there has been steady liberalization of the current account transactions, more
and more sectors opened up for foreign direct investments and portfolio
investments facilitating entry of investors in telecom, roads , ports, airports,
insurance and other major sectors.
Globalization has intensified interdependence and competition between
economies in the world market. Economic reforms experienced by India brought
the following significant benefits for the county along with globalization.
Globalization and Poverty
Globalization in the form of increased integration through trade and investment is
an important reason why much progress has been made in reducing poverty and
global inequality over recent decades. The proportion of world population living
in poverty has been steadily declining and in recent years the absolute number of
poor has fallen despite strong population growth in poor countries
Growth of the Economy
The liberalization of the domestic economy and the increasing integration of India
with the global economy have helped step up GDP growth rate, which was just
3% in1970 and GDP growth in countries like Brazil, Indonesia, Korea, and
Mexico was more than twice that of India. Though Indias average annual growth
rate doubled in eighties and reached upto 5.9%, it was still lower than the growth
rate in China, Korea and Indonesia.Growth of GDP improved Indias global
position from eighth in 1991 to fourth in 2001. During 1991-92, the first year of
economic reform, Indian economy grew by 0.9% only, however the GDP growth
% of GDP
Agriculture
Industry
Services
1984-85
35.2
26.1
38.7
2002-03
26.5
22.1
51.4
2003-04
21.7
21.6
56.7
2004-05
20.5
21.9
57.6
The composition of debt is also favourable. Short term debt amounts to 3.5 per
cent of external debt and concessional debt amounts to 36.5 per cent of total debt.
The external debt looks sustainable according to a range of measures of
indebtedness. Both debt service payments as a proportion of current receipts, and
the external debt to GDP ratio have been falling steadily during 1990s, and
currently stand at around 17 per cent and 22 per cent, respectively.
Foreign Trade (Exports and Imports)
Indias imports in 2004-05 stood at US $ 107 billion recording an increase of
35.62 per cent compared to US $ 79 billion in the previous year(Goyal,2006).
Exports also increased by 24 per cent as compared to previous year. It stood at US
$ 79 billion in 2004-05 compared to US $ 63 billion in the previous year. Oil
imports increased by 19 per cent and non-oil imports increased by 33.62 per cent
during the same period.
Trade
Total
exports
Total
imports
Total
balance
1990-91
18477
2002-03
52719
2003-04
63843
2004-05
79247
27915
61412
79149
107066
-9438
-8693
-14307
-27819
rate. Most non-tariff barriers have been dismantled by March 2002, including
almost all quantitative restrictions
Economic reforms in the Indian economy initiated since July 1991 have led to
fiscal consolidation, control of inflation to some extent, increase in foreign
exchange reserves and greater foreign investment and technology towards India.
This has helped the Indian economy to grow at a faster rate.
Comparison with other Developing Countries
Indias share of global trade is similar to that of the Philippines, an economy six
times smaller according to IMF estimates.
Over the past decade FDI flows into India have averaged around 0.5 per
cent of GDP against 5 per cent for China and 5.5 per cent for Brazil. FDI
inflows to China now exceed US $ 50 billion annually. It is only US $ 4
billion in case of India.
of the richest and most diverse heritages in the world is not an exception to this
global trend. Traditional medicines, now covered under Indian systems of
medicines are embodied in Ayurveda, Siddha and Unani systems. These systems
of medicines are based on not only herbs but also animal substances, minerals and
other natural resources. There has been a renewal of focus on systems of
medicines that are nature friendly.
Traditional medicines and healthcare systems have been in existence for
manycenturies, having been developed in several communities as a response to
the objectives of maintaining health in a conventional as well as holistic way.
World Health Organization defines traditional medicines as including diverse
health practices, approaches,knowledge and beliefs incorporating plant,animal
and /or mineral based medicines,spiritual therapies,manual techniques and
exercises applied singularly or in combination to maintain wellbeing,as well as to
treat, diagnose or prevent illness (Ayush, 2005).
WHO research in developing countries has shown that costs of allopathic system
of medicines for curing diseases, unlike traditional medicines are very high and
are beyond the reach of the common man. Similarly, concern about the adverse
effects of chemical drugs and changing perspectives about the effects of modern
medicines and their usage, are now manifesting themselves in the form of
increased application of traditional medicines, even in developed country markets.
Over the last few decades governments, international agencies, non government
organizations have been taking efforts to disclose the mysteries of traditional
medicines and also explore their scientific base for the betterment of humanity.
Some of the forms of traditional medicine are the traditional Chinese medicine,
Indian Ayurveda and Arabic Unani medicine. A wide range of indigenous
traditional medicines has also been developed throughout developing and
developed economies and other cultures.
These forms of medicines are influenced by factors such as history, personal
attitudes and philosophy;their practice may vary greatly from country to country
and from region to region. Their theory and application differ significantly from
those of allopathic medicines.
show that the art and science of Ayurveda practice was well developed and
systematically organized in that period.
The principles of Ayurveda are universal but the practices are localized and
individualized. Ayurveda is an eco-friendly and cost-effective system of
medicines which requires the presence of expert or well-trained and experienced
Ayurveda physicians. In many parts of the world Ayurveda is practiced without
the knowledge of the word Ayurveda. The American Indians have long applied
the principles of Ayurveda. Northern Europe uses home remedies that are in time
with the Ayurveda principles; and much of aboriginal therapies in Ayurveda
resemble authentic Ayurveda practices.
In the last two decades, Ayurveda due to its holistic approach using lifestyle
medication, healthy diet and safe natural drugs, has attracted a large population in
different countries around the world. Today Ayurveda and Chinese medicines top
the list of the comparative alternative medicines/ traditional medicines therapies
in popularity across the globe.
Medicines under ISM are prepared with the objectives of prevention of diseases,
maintenance of health and life styles. ISM thus deals with both prevention and
curative aspects of life. These systems of medicines are holistic and are
considered to be safe and effective. It is natural therefore the food supplements
and healthcare concerns occupy the centre stage in Ayurveda and Siddha.
Ayurveda and Siddha are twins in essence, both being based on the Panchbhuta
theory and the principle of Tridosha. Indian Ayurveda and Siddha are not
alternate systems of medicines, but a part of the main systems of medicines. They
maintain and nurture the health of a large proportion of population where the
practitioners of modern medicines may not even venture to be around.
The ISM industry in India is broadly classified into two categories:Organized and
Unorganized.
The organized sector- this sector comprises of well established manufacturers
who operate in both domestic and / or international markets. These include
companies adapted to meet modern lifestyles, manufacturing and marketing
methods and also companies that use traditional systems of medicines to prepare
new drugs.
The unorganized sector- This sector includes companies mainly the traditional
manufacturers, in terms of systems, practices and products, micro units
manufacturing only a few products and operating at local levels and
Some of the forms of traditional medicines are the traditional Chinese medicine,
Indian Ayurveda and Arabic Unani medicines. A wide range of indigenous
traditional medicines have been developed throughout developing and developed
countries.
Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy or AYUSH
forms an important part of traditional medicines.
Indian AYUSH Sector: Overview
The global pharmaceutical market was worth US $ 773 billion in 2008. The
herbal drugs industry shared about US $ 60 billion in the global pharmaceutical
market, which was close to 13%.
The Indian pharmaceutical market was valued at an approximate of Rs. 145
billion as of 2008, and was growing at 8 to 9 percent annually. The production
from AYUSH sector in India during the corresponding period was
approximatelyRs. 23 billion, which constitutes close to 6% of the pharmaceutical
market.
There are approximately 9228 manufacturing units in the country, which
contributed to an approximate turnover of Rs.8800 crore. The sector has been
growing at 10 to 12% rate each year for the last five years.
The exports from the AYUSH sector, from India, were close to Rs. 1000 crores in
2004, of which value added finished product exports were an approximate Rs. 300
crores, and medicinal plants and extracts exports were between Rs 600-700
crores.
Of the 9228 manufacturing units across India, it is estimated that not more than
100 firms would have a turnover of Rs 5.00 crores and above, which brings out a
strong indication of the dominance of small scale operations in the sector.
Sector Potential
The global pharmaceutical industry is expected to exceed US $ 825 billion by the
year 2010 and the share of the traditional medicine sector is expected to grow.
Consumers are slowly but steadily becoming aware of the benefits from AYUSH
remedies. Service seekersin the area of preventive therapies and curative therapies
are picking up.
The traditional Indian medicine and traditional Chinese medicine remain the most
ancient yet living traditions. Global awareness on these two traditional systems
has increased manifold over the past few decades, leading to the acceptance of
such medicine systems.
The traditional medicine therapies/drugs have diversity, flexibility, accessibility
and affordability in many parts of the world.
Nutraceuticals broadly classified as products from natural sources or
manufactured synthetically, which supplement the diet to provide nutrition and
help prevent nutrition related disorders, is another area where the TM sector has
universally accepted applications and where there is scope for the AYUSH
industry to flourish both in the domestic as well as export market. The global
Nutraceutical market is estimated at Rs.5148 billion, with US, Europe and Japan
as key markets. Indias share is meager 0.9%. But the encouraging fact is that the
Indian market has been growing at a much faster rate than the global rates.
Ayurveda has some commonly used nutraceuticals such as Chyawanprash, for
general health and strengthening of immune system; and Brahma Rasayana, for
defense against mental stress. These along with other health supplements could
have ready acceptance both in the domestic as well as export market.
AYUSH sector has bright future when coupled appropriately along with tourism.
Medical tourism in Asia has been rising and people from USA, Australia, Europe
and Canada in particular have been heading to countries like Srilanka, Thailand
and India for curative treatments. These destinations offer good infrastructure,
cheaper treatments, natural beauty and favorable weather.
Medicinal plants, besides providing backbone to the TM sector also present itself
as a potential revenue earner by virtue of its demand and importance. Medicinal
plants provide the principal ingredients of medicines in most traditional systems
of healing. In India there are about 3500 species out of 45,000 which are of
medicinal value. More than 80 percent of these plants are collected from 17
million hectares of Indian forests.
The United States imports thousands of tons of different herbs each year to
support its US $ 3 billion raw herb market. On the other hand, Indias total export
of herbs and herbal products is less than US $ 800 million per year. Thus there is
a global demand and it could be realized by the converged efforts by the industry
and Government. There is a trade opportunity for India that should be optimized.
The Department of Ayush with strong thrust on promotion of Ayush has already
initiated progressive steps. Some of the schemes/ programmes are Scheme for the
development of AYUSH clusters, Scheme for upgrading to Centres of Excellence,
Scheme for Extra Mural Research projects on Indian Systems of Medicine and
Homeopathy and National Mission on Medicinal plants (AYUSH, 2005).
Key Impediments faced by the Sector
a) Traditional medicine has to face the challenges like varying degrees with which
it is recognized by the governments; the lack of some scientific evidence
concerning the efficacy of many of its therapies; difficulties relating to the
protection of indigenous traditional medicine knowledge; and problems in
ensuring its proper use.
b) Traditional medicine practices are concentrated in some traditional families,
which are repository of traditional approaches and knowledge. However there is
very little documentation of such processes, which is endangering the science. A
closer look at the manufacturing processes employed foir preparation of
formulations/ products in the sector reveals that an altered traditional process is
adopted in many cases. Such altered process falls short of meeting the traditional
norms thereby failing to meet the objective of the drug, as stated in the text of
medicinal systems.
c) As the sector is crucial to the healthcare, there are number of trade related
compliances, which are being made mandatory, either in India or abroad. Issues
such as effectiveness of formulations, efficacy, and any side effects are expected
to be documented and certified by appropriate agencies before drugs can be sold
in some markets.
d) The units in the sector in India are finding it difficult to survive due to various
trade compliance issues and other policy restrictions from time to time.
e) In the recent past traditional medicine sector in India has come under criticism
for non-standard, untested, unsafe and harmful formulations. This sector has to
face lot of controversy due to heavy metal issue. After UK, Canada had also
issued an advisory against the use of four Indian Ayurvedic products that were
found by Singapores Health Science Authority to contain high levels of lead and/
or mercury, in July 2006. It is therefore becoming imperative for the units in the
sector to validate their products and processes by adopting modern techniques.
This would enable them to meet basic standards and required scientific protocol
thereby enhancing acceptability of traditional medicines not only in India but
world over.
f) While todays medicine is driven by published evidence, little or no evidence
exists in regard to the treatments offered by Ayurveda. Further research in this
direction is little or non-existent. This is a key deterrent to integration of
Ayurveda into mainstream healthcare. And till it is sorted out, Ayurveda might
continue to be used only on the periphery of mainstream healthcare.
Some of the impediments faced by the AYUSH industry in specific, which
arecrucial to the survival and growth of the sector, are highlighted below;
a) Non-availability of standardized raw material
i) Raw material forms the most crucial part of the value chain for any
sector. The quality of the raw material plays an important role in
manufacturing quality products. Especially when such products are
pertaining to healthcare or medicines, the underlying importance of quality
and standardized raw material cannot be less emphasized.
ii) The industry currently is facing problems which are dual in nature as
follows:
The required amount of raw material as in herbs, medicinal plants, barks,
saplings, roots, shoots is bought by the industry users from various
sources. Hence these raw materials differ in properties which could be due
to the following reasons:
a) Climatic conditions
b) Cultivation techniques
c) Watering/ manure related deficiencies
d) Pre and post harvest care
e) Packing of raw material appropriately
f) Transportation and storing to avoid adulteration
g) Host of other related issues
iii) Even if good quality raw material is available in small quantum, they differ in
properties and are non-standard in nature. This leads to using non-standardraw
material to manufacture products. The end result is that due to non standard raw
materials being used, although the same manufacturing process may be adopted,
the end product has different properties like, colour, smell and texture.
iv)At present, the use and trade of medicinal plants and herbs is unregulated. To
feed the fast growing herbal based industry, a continuous supply of quality
medicinal plant raw material is critical. This needs proper management of plant
resources. However, lack of reliable information about the consumption and
supply of specific plants has been the biggest obstacle in doing so. Also, in India
ninety percent of the raw material used by the herbal industry is taken out from
the forest lands. This has resulted in over exploitation and destruction of its
natural habitation.
Hence the impediment which needs to be addressed is the availability of
standardized raw materials in adequate quantities.
b) Lack of adequate modernization
i) AYUSH sector does not rely on very high level of technology
framework so there is need to upgrade technology to enhance the output of the
traditional medicines manufacturing units.
ii) Units also do have their own testing equipments, which are need based
in nature. Hence there is also a need to update in-house testing equipment from
time to time as markets become more matured and insist on specific types of
testing to be carried out on either raw material, work in progress or finished
products.
iii) Policy compels preparation and packaging of the drugs in the same premises.
Such drugs cannot leave the premises for any intermediate value addition, even if
it is a requirement of the end client and may fetch the unit higher margins.
j)Extension of insurance benefits for therapies
As of date, personal insurance claims are settled by insurance agencies only for
treatment of ailments post hospitalization. Therapies under the AYUSH sector,
even for the treatment of critical ailments are not covered under the insurance
purview. There have been sporadic cases where some private insurance agencies
have extended partial insurance benefits, for the treatment under this sector.
The sudden resurgence of traditional medicines forced the agencies like WHO
and NGOs like the National Institute of Health, USA to develop a new
perspective for traditional medicines in the scientific and political circles
(Patel,n.d.:159). The WHO traditional medicine strategy 2002-2005 lays
guidelines for formulating policies to integrate traditional medicines or
complementary alternative medicines(CAM) into mainstream health care to
ensure safety, efficacy and quality of traditional medicines or complementary
alternative medicines to increase access to these medicines and promote its
rational use. The national institute of health opened the National centre for
complementary and alternative medicines (NCCAM) in 1998.A five year plan
was also formulated to promote clinical research on CAM which is examined
under five domains-Alternative medical systems, Mind-body interventions,
Biologically based therapies, Manipulative and Body based methods and Energy
therapies. The above documents facilitate the scientific and political initiative to
regulate the practice of TM/CAM the world over. The number of Americans
using CAM increased from 60 million to 83 million between 1990 and 1997.
Visits to CAM practitioners increased by 47%; exceeding visits to MDs by 243
million. It has been observed that Americans spend more money for CAM than
for conventional health care. Ayurveda is one of the most popularly usedCAM/
TM therapies in the world along with traditional Chinese medicines. The healing
potential of Ayurveda has opened up a new front of health tourism in India, where
people all over the world come over for availing the benefits of Ayurveda therapy
for many chronic ailments and also for diseases, where modern medicine has
nothing substantial to offer.
Global Resurgence of Ayurveda
The global profile of Ayurveda can be analyzed from three different angles. With
respect to the first aspect of popularity, Ayurveda is best identified as a holistic
health care system for wellness, integrating the mind, body, spirit trio. A few
committed individuals and institutions contributed significantly in creating
awareness regarding Ayurveda among various countries of the world.
RenownedAyurvedists and people with scientific background propagated
Ayurveda in America, Japan, Australia, Italy, Germany etc. However this did not
contribute to the legal recognition of Ayurveda as an independent medical
knowledge system in most parts of the world.
The second aspect of global profile of Ayurveda is the pharmaceutics, where
Ayurveda drugs are marketed and propagated as neutraceuticals, food
supplements, cosmetics and rejuvenatives. In most of the countries Ayurveda
drugs can be seen in general stores as dietary supplements under the label of
Ayurvedic Herbal products. These are not classified as drugs and hence are not
allowed to have any medicinal claim. There is also no requirement for qualified
Ayurveda physician to prescribe them. Sceptics of TM have demanded very high
standards to accept its efficacy and validity. However huge costs involved in the
research of a kind that is demanded by the global scientific community has in
effect denied success to Ayurveda and other medical knowledge systems in their
truly holistic sense.
The third aspect of global profile of Ayurveda is the promotion of Ayurveda
education which is the most recent trend observed in major part of the world.
Ayurveda is studied from different angles abroad. There is a purely academic
approach to study Ayurveda, an exercise in which medical anthropologists,
historians, philosophists and Sanskrit scholars are engaged. CAM which looks at
Ayurveda as a part of a spectrum of alternative approaches of healing but do not
consider it as an independent system of medicine. Compared to the first approach
the concept of CAM recognizes a certain amount of practical relevance for
systems of medicine like Ayurveda.
There are promoters of Ayurveda who believe in its identity as an independent
system of medicine. In this group there are a few who have a genuine
understanding of Ayurveda. These are the people who desire to promote
Ayurveda truly for the well being of the global community. There are many
institutions in Ayurveda offering Ayurveda courses to interested foreign nationals.
Many Western scholars have come to India and did a formal Ayurveda education
out of love and interest in the subject. Many modern doctors in the West also were
keen to understand Indian holistic health care system better. The main barrier in
acquiring formal Ayurveda education in India was the lack of authentic texts and
capable teachers who can convey the subject in depth in English. The time
consumed for acquiring deep knowledge of Ayurveda was unaffordable to
common Western people. Initially they had to learn Sanskrit and Hindi and then
Ayurveda which consumed good quality years of their life.
By 1988 a few institutions in India commenced short term courses for foreign
nationals which helped Ayurveda flourishing abroad. These courses are of
varying purpose and duration, ranging from three months introductory course for
Ayurveda to a full fledged BAMS course necessary to become Ayureda
physician. In the year 1992, a one year diploma course in Ayurveda was started
under the international centre for Ayurveda studies. Gujarat Ayurveda University
(GAU) started BAMS course for foreign nationals in 1999. The students from 43
countries so far have completed various Ayurveda courses from GAU alone.
There are ample evidences for showing growing interest in Ayurveda outside
India. Nearly 99 Ayurveda institutions outside India are offering various courses.
Many institutions are still looking forward to get an official MOU signed by the
university.
The reasons behind global resurgence of Ayurveda and other traditional medical
knowledge systems can be stated as follows:
Modern medicine treats the disease but Ayurveda treats the patient which
offers the detailed patient interaction and tailor-made drugs.
Ayurveda emphasizes life style modification and healthy diet rather than
excessive use of drugs.
Even after two decades of its globalization, Ayurveda is facing identity crisis in
the medical world. In spite of the increasing popularity of Ayurveda it is still
lagging behind Traditional Chinese medicine in global recognition. Ayurveda has
been wrongly parented in many countries under the shelter of Herbal Medicine
or as a Traditional medicine of empirical base or at the most as a complementary
and alternative medicine. The term Ayurveda does not appear with an
independent status anywhere in the world other than in the Indian subcontinent,
Indian material Medica has the history of a millennium. CharakSamhita has direct
reference of over 600 herbs and many herbal formulations. Many ancient travelers
who visited India from China, Far East, and Europe were impressed by the
traditional system of medicine practiced in India.
Europe imported many useful medicinal plants and their products. It shows that
Ayurveda was a system of medicine even in Europe.
Today Ayurvedic medicines are largely imported into various countries as Herbal
Medicines food supplements and cosmetics. These include single herbs,
compound herbal remedies and patented drugs which contain non-herbal
ingredients. Many of these contain Ayurveda natural minerals and metallic drugs,
which need strict medical mechanism to regulate these drugs; many a times
suspected adverse drug reactions, spoil the reputation of the system as a whole,
whereas in most of the cases the irrational use and misbranding as food are the
culprits.
Today the global estimated turnover of exports of herbal medicines is more than
Rs. 50,000crore. Of this Indias share is very negligible, coming to only Rs. 400
crore.
unique health care system with a holistic solution to many complex health
hazards. The flourish of the system has to be positively channeled to benefit the
maximum people with minimum expense. Current regulatory status of Ayurveda
at global level can be assessed by classifying the countries into four groups (Patel,
n.d.:165)
India and other SAARC Countries
Theseare the countries where Ayurveda has a strong scientific base and is well
recognized as a medical system with an independent status. These countries
regularize the trade and practice of Ayurveda. The profile of Ayurveda practice in
these countries can be given as follows:
Sri Lanka
Ayurveda tradition in Sri Lanka is centuries old but the teaching institutions were
established only in thirties by the persons educated from India.
At present following teaching institutions offer Ayurveda teaching and research in
the country:
GampahaWickramarachchi
Ayurveda
Institute
(GWAI),
Kelonia
University
Since 1980s IIM has started awarding BAMS degree. Later, GWAI also started
awarding the degree under the Kelonia University. Many of Sri Lankan graduates
attained post-graduate degree from Jamnagar and Varanasi and the country has
highly qualified faculty for teaching Ayurveda. These institutes in Sri Lanka
follow the rules and syllabus practiced in India.
Sri Lanka has also got a highly flourishing Ayurveda tourism inflow. Many
patients from Europe visit Sri Lanka for Ayurvedic treatment.
Nepal, Bhutan
Nepal is the first country to execute a National policy on Ayurveda. Ayurveda has
a status of a medical system in Nepal. Full-fledge Ayurveda degree course of five
and half years is conducted by the Institute of Medicine in the premises of
Tribhuvan University, Kathmandu. Ayurveda is practiced widely and plays key
role in primary health care. Wide range of Ayurvedic medicines are manufactured
and used in the country India supplies the major share of Ayurvedic medicines
used in Nepal. Bhutan also recognizes Ayurveda as a medical system. India caters
to the Ayurvedic medicine requirements of Bhutan and Nepal.
Bangladesh, Pakistan
Prior to independence of India there were a few Ayurveda colleges within the
boundaries of the present Bangladesh. However after the formation of
Bangladesh,Ayurveda education and practice took a new shape. The system is
recognized officiallyand the Government has taken initiative to integrate the
Ayurveda and Unani systemsin the primary and secondary health care institutions.
A full-fledge five and half yearsdegreecourse is being conducted at the
Government Unani and Ayurveda degree college,Dhaka. Apart from this, there
are seven Ayurveda colleges in the private sector offering diploma in Ayurveda.
There are 153 BAMS registered Ayurveda doctors and 398 diploma holders
practicing in Bangladesh. There are 162 registered sales centers for the trade of
Ayurvedic medicines in the country. Pakistan has many Ayurvedic manufacturing
units and Ayurveda and Unani systems of medicines are practiced even in
Pakistan.
I.
Ayurveda and Traditional Chinese medicines are quite popular in Asian countries.
Traditional medicines play an important role in primary health care of these
nations.
The main Asian countries using Traditional medicines are:
Japan
Research and study of Ayurveda are being carried out in Japan for the last thirty
years. The Osaka medical school has established Society of Ayurveda in Japan in
1969. Many delegations from India including contemporary Ayurveda experts
visited Japan to give boost to the popularity of Ayurveda in Japan. The Institute of
Traditional orientalmedicines in Tokyo conduct shortterm courses for health
professionals. A special course in Panchkarma is also offered to general public.
Ayurveda Institutes in Japan have translated few Ayurveda classics in Japanese
language.
DPR Korea
The traditional medicines of DPR Korea are called Koryo medicine. The whole
medical care system is government owned. The conventional doctors also have to
cover 30% of their curriculum in Koryo medicine.
Myanmar
The traditional medicine of Myanmar has its origin from Ayurveda. It uses the
raw material of herbal, mineral and animal origin. The country has a Department
of Traditional Medicine and practice of Ayurveda is officially recognized.
Thailand
Ayurveda is very popular in Thailand. AyurvedVidyalay offers a Bachelors
degree in Ayurvedic medicine.The Ayurveda Vidyalaya offers a Bachelors
degree in Ayurveda medicine. There are many Ayurveda practitioners and
Ayurveda therapy centres in the country and the medicaments are imported from
India and Sri Lanka.
II.
Developed Countries
Italy
There are several institutes in Italy, which impart various Ayurveda courses. The
practice of Ayurveda as a traditional and complementary therapy is wide spread.
Spain
At Barcelona and other cities of Spain, eminent Ayurvedic leaders and
Naturopaths have been involved with both education and services in alternative
systems of medicine.
France, Czech Republic, Greece
In France Ayurveda is slowly gaining popularity as a wellness therapy. Few
institutions are offering Ayurveda education. In Greece, Dr.Kostopolos is running
an Ayurveda centre. Even in Czech Republic Ayurveda courses are being
conducted and some Wellness therapy centres are opened, but Ayurveda has to
get legal recognition in thiscountry.
Australia and New Zealand
Many qualified Ayurveda practitioners from India are practicing Ayurveda in
Australia from last one decade. They import large number of Ayurvedic products
from India and Sri Lanka.In New Zealand WellparkCollege of Natural
Therapiesconduct various courses in Ayurveda, Natural therapies and Yoga. This
college is recognized by New Zealand Government.
Other Countries
All other individual countries of Africa, Latin America, and Russia have a large
clientele for Ayurveda.Large number of people from these countries travels down
to India from these countries for Ayurveda treatment for various chronic diseases.
South Africa allows the import of Ayurvedic medicines. Ayurveda practice is
recognized in South Africa.
the global market, and stood at US $ 7.5 billion in 1997. Germany and France are
the most established markets with a share of 22 percent and 11 percent in Europe
respectively followed by Italy, UK, Spain and Holland. The Asian region also had
a significant share in global herbal remedies market, being at par with North
America at US $ 3 billion, thus accounting for 18 percent of the total share in
1997.
An opening of the global market will allow Indian manufacturers and service
providers of traditional medicines to venture into the western herbal markets.
Theacceptance of herbal products in the western market has created new
opportunities for the industry. The demand for Ayurvedic preparations is quite
high and new interest in Ayurvedic massages and cleansing treatments have
further increased the demand. Modern medicines are proved to be ineffective in
the case of emergence of the old conditions like small pox. Due to this reason
people prefer to go back to the traditional medicines which are natural in nature.
But these medicines have to go through the modern scientific methods for the
universal acceptability. The Chinese have been borrowing Ayurveda knowledge
from India since as early as the 14th century. Today China has pioneered the art of
leveraging on its traditional medicines and India is nowhere near it in terms of
global competition.
In most modern sciences India is lagging behind the developed nations by at least
a few decades, but Ayurveda is the only sector where the country is ahead of
others by 5000 years and it must leverage on its head start. Ayurvedic products
and services based on Ayurveda need to be promoted. Today the whole Ayurveda
system needs recognition and not just products. Former US president Mr. Bill
Clinton appointed afifteen member commission on complementary and alternative
medicine policy which included three Chinese doctors, but ironically, there was
no representation from Indian systems of medicines.
19992000
200001
200102
200001
200102
44.22
78.37
78.05
77.21
40.41
4.28
8.37
25.13
77.72
4.93
21.17
27.40
126.94
6.67
19.41
31.04
128.50
15.41
152.88
9.02
63.32
35.29
-8.31
13.28
1.23
Source: DGCIS, Ministry of Commerce and Industry (as compiled by CMIE India
Trades Database) 2002
The above table shows the exports of Ayurveda products which includes the
following items:
Plants and parts of plants of a kind used primarily in perfumery, in pharmacy or
for insecticides and fungicides, fresh or dried, crushed or powdered Ayurveda and
Unani herbs- ITC (HS) code 12119026, ITC (HS) code 1211.
Ayurveda andUnani medicines (under the head-medicaments consisting of two or
more constituents which have been mixed together for therapeutic or prophylactic
uses, not put up for retail sale)-ITC (HS) Code: 30039001
Ayurveda and Unani medicines (Under the head Other medicines put up for
retail sale)-ITC (HS) Code: 30049001
Developed countries have been the traditional export markets for Ayurveda
products. However after increasing by more than 63% in 2000-01 to US $ 126.9
million, exports of Ayurveda virtually stagnated, growing by a mere 1.2% to US $
128.5 million in 2001-02. There was fall in exports to Germany from more than
United Kingdom
Canada
Germany
Japan
Malaysia
Australia
New Zealand
Middle East
France
Switzerland
South Africa
Russia
Financial constraints
No market information
Lack of contacts
requirement that was violated as long as the process was not performed according
to industry standards.
The World Health Organization version of GMP is used by pharmaceutical
regulators and the pharmaceutical industry in over one hundred countries
worldwide, primarily in the developing world. The European Unions GMP (EUGMP) enforces similar requirements to WHO GMP, as does the Food and Drug
Administrations version in the US. Similar GMPs are used in other countries,
with Australia, Canada, Japan, Singapore and others having highly developed /
sophisticated GMP requirements. In the United Kingdom, the Medicines Act
(1968) covers most aspects of GMP in what is commonly referred to as The
Orange Guide which is named so because of the colour for its cover, it is
officially known as Rules and Guidance for Pharmaceutical Manufacturers and
Distributors.
Enforcement
Within the European Union, GMP inspections are performed by National
Regulatory Agencies, in the Republic of Korea by the Korea Food and Drugs
Administration, in Australia by the Therapeutically Goods Administration, in
South Africa by the Medicines Control Council, in Brazil by the AgenciaNational
de Vigilancia Sanitaria, in Iran, India and Pakistan by the ministry of health, and
by similar national organizations worldwide. Each of the inspectorates carry out
routine GMP inspections to ensure that drug products are produced safely and
correctly, additionally, many countries perform pre-approval inspections for GMP
compliance prior to the approval of a new drug for marketing.
Regulatory agencies (including the FDA in the US and regulatory agencies in
many European nations) are authorized to conduct unannounced inspections,
though some are scheduled. FDA routine domestic inspections are usually
unannounced, but must be conducted according to 704(A) of the FD and C Act
(21USC374), which requires that they are performed at a reasonable time.
GMP in Ayurveda
The place should always be free from outside interference that will
not distract the attention of the staff engaged in manufacturing.
Total exports
2006-07
25,953.88
2007-08
32,143.83
2008-09
32828.60
2009-10
96167.20
6.12 Conclusions
Globalization manifests itself in the promotion of free trade so it has brought
many opportunities for the developing countries like India. But at the same time it
exposed India to many threats and challenges.
Globalization benefitted the Indian healthcare system in the form of global trend
of high preference for traditional medicines having natural origin.
Today traditional medicine sector in general and Ayurveda in particular is facing
lot of problems like lack of standardization of raw material, lack of adequate
modernization and lack of adequate infrastructure.
Recent resurgence of Ayurveda across the globe is the result of continuous efforts
taken by some renowned Ayurveda practitioners to spread the knowledge about
the importance of Ayurveda in developed countries like U.S.A., Japan, Australia,
Italy and Germany. Today the promotion of Ayurveda education in different
countries of the world contributed significantly towards making Ayurveda global
in real sense.
Heavy metal controversy related to Ayurvedic medicines makes it difficult to
increase the official export of Ayurvedic medicines. Lack of government support
and lot of paper workrequired for exporting Ayurvedic medicinesaffected the
motivation for exports. Many countries insist upon Good Manufacturing Practice
(GMP) procedure to be followed by the drug manufacturers. These countries
prepare their own guidelines to suit their GMP legislation which further hampers
the export of Ayurvedic medicines fromIndia. Since Ayurveda is gaining
recognition inside and outside India, there is tremendous scope for increasing the
exports of Ayurvedic products and services, especially in the post reform period
of liberalization and globalization.Recently the exports of Ayurvedic products
increased at more than 312.6 percent. It will increase further in near future.
References
1. AYUSH (2005):The Indian Traditional Medicine Sector: Background,
Annual Report published by Department of AYUSH Government of India,
New Delhi
2. Chandrashekharan, Balkrishnan (2004): Impact of Globalization on
developing countries and India Accessed from
http://economics.about.com/od/globalizationtrade/l/aaglobalization.htm on
November 9, 2010.
3. Dave, Daksha (2007): Entrepreneurship in globalizing world A paper
presented at UGC sponsored National Level Seminar on EntrepreneurshipPerspectives in the changing world, organized by Smt. M.D. Shah Mahila
College of Arts and Commerce, Mumbai
10. Rangarajan, C. (2006): Responding to globalization: Indias answer4thRamanbhai Patel lecture on excellence in education, Accessed online
from http://eac.gov.in/aboutus/ch_speech.htm on 12/11/09
11. Websters Dictionary: History of globalization[Online] accessed from
file://H:\Dictionary-Definition of globalisation.htm, on December 4,2010
12. Wikipedia (2011): Good Manufacturing Practice accessed from
http://en.wikipedia.org/wiki/Good-manufacturing-practice[5/4/11]