Vicco Labs Director Provides Detailed Budget Assessment for Ayurveda Sector
Sanjeev Pendharkar, Director of renowned herbal cosmetics major Vicco Laboratories based in Nagpur, has offered a comprehensive analysis of the recent Budget's implications for the ayurveda industry. According to Pendharkar, the Budget presents a balanced yet cautiously optimistic outlook, reflecting a nuanced approach to supporting this traditional sector.
Positive Signals and Emerging Opportunities
Pendharkar highlighted several key areas where the Budget delivers positive signals for the ayurveda industry:
- Enhanced Focus on Research and Development: The increased emphasis on research initiatives is seen as a crucial step toward advancing ayurvedic knowledge and innovation.
- Standardisation and Quality Assurance: Efforts to improve standardisation and quality assurance protocols are expected to bolster consumer confidence and industry credibility.
- Support for MSMEs: The Budget's backing for Micro, Small, and Medium Enterprises (MSMEs) is particularly beneficial, as many ayurvedic companies fall into this category, enabling them to scale operations effectively.
Furthermore, Pendharkar pointed out that the thrust on exports, the 'Make in India' initiative, and the branding of Indian heritage products open fresh opportunities for ayurvedic co-products to access global markets. He emphasized that this potential can be fully realized only if regulatory harmonisation and quality benchmarks are consistently supported, ensuring that Indian ayurvedic products meet international standards.
Persistent Challenges and Areas for Improvement
Despite these positives, Pendharkar identified several challenges that continue to affect the ayurveda industry:
- Absence of Sector-Specific Fiscal Incentives: The lack of targeted fiscal incentives for the ayurveda sector remains a concern, limiting growth potential and investment.
- GST Rationalisation Issues: Pendharkar noted that the ongoing need for GST rationalisation for co-products and raw materials impacts cost structures, making it harder for companies to maintain competitive pricing.
- Growing Compliance Burden: While acknowledging the importance of compliance for quality and consumer safety, Pendharkar highlighted that this burden can be particularly challenging for smaller manufacturers. He stressed that without proportional financial or technical assistance, these entities may struggle to meet regulatory requirements, potentially hindering innovation and market entry.
In summary, Pendharkar's analysis underscores a mixed but hopeful scenario for the ayurveda industry. The Budget's supportive measures offer a foundation for growth, but addressing the outlined challenges will be key to unlocking the sector's full potential on both domestic and global fronts.
