Regulation explainerIndia

AYUSH Licence vs FSSAI: Choosing the Right Route for a Herbal Product in India (2026)

AYUSH licence vs FSSAI comes down to intended use. An Ayurveda, Siddha or Unani medicine needs a manufacturing licence from the state licensing authority under the Drugs and Cosmetics Rules, not from the Ministry of Ayush,[1][2] while a herbal supplement with no treatment claim is a food under FSSAI’s nutraceutical regulations and needs a central FSSAI licence.[6][7]
VMDr Vikram Mehta
PhD, FRSC · Head of Regulatory Affairs & Nutrition Science, Food Research Lab
✓ Technically reviewed by FRL Editorial · Last reviewed: 3 November 2026 · Next review: May 2027
Posted
3 November 2026

Last checked
3 November 2026

Reading time
10 min

Sources
10
At a glance
  • An “AYUSH licence” is a state licence to make ASU drugs (Form 25-D); the Ministry of Ayush does not grant licences.
  • Herbal supplements without treatment claims are foods under FSSAI’s nutraceutical regulations; manufacturers need a central licence.
  • The claim decides the route: a therapeutic indication makes a product a drug.
  • Ayurveda Aahara is a third, food-only route for classical Ayurvedic recipes, with its own label words and logo.
  • Ashwagandha: FSSAI permits roots and root extracts only; a May 2026 court stay covers only the petitioners.
Timeline
1 April 2022
FSSAI applies the 2022 nutraceutical draft by direction
5 May 2022
Ayurveda Aahara Regulations, 2022 notified
18 April 2024
Ministry of Ayush: no nutraceutical-value claims on Ayush products (as reported)
15 April 2026
Ministry of Ayush: ashwagandha roots only in Ayush products
16 April 2026
FSSAI advisory: ashwagandha leaves not permitted in nutraceuticals
May 2026
Karnataka High Court interim stay, petitioners only

AYUSH licence vs FSSAI: is your product a medicine or a food?

India has two separate legal homes for a herbal product. Ayurveda, Siddha and Unani (ASU) medicines are drugs under the Drugs and Cosmetics Act, 1940 and its 1945 Rules, licensed by state licensing authorities.[2] Health supplements and nutraceuticals are foods under the Food Safety and Standards Act, 2006, regulated by FSSAI, and they are not meant to treat or cure a disease.[1] The Ministry of Ayush has said the two categories are regulated by different laws, and that Ayurvedic and related products should not claim nutraceutical value, according to a 2024 NutraIngredients report of its notice.[1]

So the first decision is not which form to fill in. It is what the product is for and what it will say. A 2026 review of Indian nutraceutical regulation notes that a product claiming to treat, cure, prevent or mitigate a disease is treated as a drug, and that unclear boundaries between food and drug are a recurring problem for manufacturers.[7] Fix the intended use and the claim first, and the licence follows from them (Figure 1).

This guide is about that choice. For the quality and GMP requirements once you are on the AYUSH route, see our AYUSH guidelines for herbal products; for category rules, dose limits and labels on the food route, see our FSSAI nutraceutical regulations explainer.

Four-step decision path for a herbal product in India: 1 positioning, medicine or food; 2 claims, therapeutic or general wellbeing; 3 route, AYUSH, FSSAI or Ayurveda Aahara; 4 licence, state or central
Figure 1. The claim decides the route: positioning, claim, route, then licence (state licence for ASU drugs; central FSSAI licence for nutraceuticals).

The AYUSH licence route for ASU medicines

Who grants an AYUSH licence

What brands call an “AYUSH licence” is, in law, a state licence to manufacture ASU drugs for sale. Under Rule 152 of the Drugs and Cosmetics Rules, each state government appoints the licensing authorities for its area.[2] The application is made in Form 24-D (Rule 153), and the licence is issued in Form 25-D (Rule 154) after the authority consults an expert in the relevant system of medicine.[2] The Ministry of Ayush does not itself grant manufacturing licences or product approvals, and it has warned that claims such as “approved by the Ministry of Ayush” on labels or advertisements are incorrect.[1]

State procedures, portals, checklists and fees differ. The Delhi Directorate of AYUSH, for example, publishes its own forms and checklists for Form 25-D and loan licences.[3] Confirm the current requirements with the authority in the state where the product will be made.

Own factory or contract manufacturer

A brand that has no manufacturing facility of its own can apply for a loan licence under Rule 153A, which lets it use the facilities of a manufacturer that already holds a Form 25-D licence.[2] This is the usual route for a brand launching an ASU product through a contract manufacturer.

GMP and labelling on the AYUSH route

Manufacture must take place in premises and under the hygienic conditions set out in Schedule T. The licensing authority checks those requirements and issues the GMP certificate in Form 26 E-I together with the licence (Rule 157).[2] Rule 161 requires the label to list every ingredient with its botanical name, the plant part and the form used, with quantities, and to carry the words “Ayurvedic medicine”, “Siddha medicine” or “Unani medicine” as applicable.[2] Advertising falls under the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.[1][7] Homoeopathic medicines are licensed under separate provisions of the same Rules and are outside this comparison.

The FSSAI nutraceutical route for herbal supplements

What the route covers

The notified text is the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and Novel Food) Regulations, 2016.[4] Since 1 April 2022 FSSAI has also applied a revised 2022 draft by direction, pending final notification. It covers five categories: health supplements, nutraceuticals, food for special dietary use, food for special medical purpose, and prebiotic and probiotic food.[5] Our FSSAI nutraceutical regulations explainer sets out which text applies where they differ.

Licence, claims and labels

Manufacturers of products under the nutraceutical regulations are licensed by FSSAI’s Central Licensing Authority, whatever their turnover.[6][7] Claims are governed mainly by the Advertising and Claims Regulations, 2018 and labels by the Labelling and Display Regulations, 2020, alongside the category rules.[7] The category rules also require the statement “NOT FOR MEDICINAL USE” on the label.[4] A treatment or cure claim is not available on this route, because it would make the product a drug.[7]

Botanicals: the plant and the plant part

For herbal products the ingredient list matters as much as the claim. Schedule IV of the 2016 Regulations lists the plants and botanicals permitted in these categories, and FSSAI reads that list by plant part: for ashwagandha, only the roots and their extracts are permitted.[9] A botanical or part that is not listed needs a different route, such as FSSAI product approval for non-specified foods.

A third route: Ayurveda Aahara

Some products are neither ASU medicines nor nutraceuticals. The Food Safety and Standards (Ayurveda Aahara) Regulations, 2022, notified in the official gazette on 5 May 2022, cover foods prepared to recipes, ingredients or processes described in the authoritative Ayurveda books listed in Schedule A.[8] They exclude Ayurvedic drugs and proprietary Ayurvedic medicines, herbs listed in Schedule E-1 of the Drugs and Cosmetics Rules, and metal-based preparations such as bhasma or pishti.[8]

Every Ayurveda Aahara product must carry the words “AYURVEDA AAHARA” close to the product name, the specified logo on the front of the pack and the statement “ONLY FOR DIETARY USE”.[8] This route suits a classical food such as a traditional preparation sold as a food. It is not a way to sell a medicine without a drug licence.

How to decide which route applies

Start with the claim, then check that the ingredients, the plant parts and the format support it. A therapeutic indication points to the ASU drug route. A general well-being or nutritional claim on a product whose botanicals are listed for food use points to FSSAI. A classical food made to a Schedule A text points to Ayurveda Aahara.

Table 1. The three Indian routes for a herbal product compared

Area AYUSH (ASU drug) FSSAI nutraceutical Ayurveda Aahara
Legal basis Drugs and Cosmetics Act, 1940 and Rules, 1945[2] 2016 Nutraceutical Regulations; 2022 draft applied by direction[4][5] Ayurveda Aahara Regulations, 2022[8]
Who licenses State licensing authority (Form 25-D, or loan licence); not the Ministry of Ayush[1][2] FSSAI Central Licensing Authority[6] FSSAI, as a food[8]
Claims Medicinal use within ASU rules; advertising under the Drugs and Magic Remedies Act[1][7] No treat or cure claims; Advertising and Claims Regulations, 2018[7] Dietary use only[8]
Label must-haves Ingredients with botanical names, plant parts and quantities; “Ayurvedic medicine” (or Siddha/Unani)[2] “NOT FOR MEDICINAL USE”; Labelling and Display Regulations, 2020[4][7] “AYURVEDA AAHARA”, logo, “ONLY FOR DIETARY USE”[8]
Quality system Schedule T GMP; GMP certificate in Form 26 E-I[2] FSSAI licence conditions and category rules[4][6] FSSAI food licence conditions

Where the routes overlap

The overlap is where products are challenged. The Ministry of Ayush has said Ayush products should not claim nutraceutical value,[1] and the 2026 review notes that state drug inspectors may step in where it is unclear whether a product is a nutraceutical or a drug.[7] Each product should sit under one route. A company that makes both medicines and foods can hold both kinds of licence, but for different products, each with its own label and claims.

Worked example: a 240 mg ashwagandha root-extract capsule

Take a single-ingredient capsule containing 240 mg of ashwagandha (Withania somnifera) root extract, taken once daily. Ashwagandha root is a classical Ayurvedic herb, so the same capsule could in principle be made as an ASU proprietary medicine under a state licence, or as an FSSAI nutraceutical with general well-being wording under a central licence. The intended use and the claim decide which. Three checks are specific to this product.

  • Plant part. On 15 April 2026 the Ministry of Ayush directed Ayush drug manufacturers to use only ashwagandha roots, in any form, and to declare the plant parts on the label under Rule 161. On 16 April 2026 FSSAI issued an advisory that only the roots and their extracts are permitted under Schedule IV of the 2016 Regulations, and that leaves in crude, extract or any other form are not.[9] The Ministry’s letter cites studies reporting possible safety concerns with the leaves, linked to higher levels of reactive withanolides such as withaferin A.[9] Declaring “root extract” on a nutraceutical label is also the simplest way to show compliance.
  • Court status. In May 2026 the Karnataka High Court stayed both the FSSAI advisory and the Ayush directive in an interim order, but only for the petitioners in W.P. No. 14990/2026 and W.P. No. 15010/2026, and listed the matter for 8 June.[10] We could not verify any later order. The stay does not apply to other businesses, and it does not matter for a root-only product; check the current position before relying on it.
  • Claim. Wording such as “treats anxiety” is a therapeutic claim and would take the capsule out of the food route.[7] Evidence on a branded root extract, such as the trial in our Lopresti 2019 ashwagandha study explainer, does not by itself allow a treatment claim on a food. Keep to wording permitted for the category and have it reviewed.

Our ashwagandha capsule development worked example follows the same product through specification, testing and stability.

Compliance checklist for herbal brands

Table 2. Route and licence checklist for a herbal product in India

Step Check
1. Intended use and claim Therapeutic indication, or general well-being or nutritional claim, decided and written down[1][7]
2. Route ASU drug, FSSAI nutraceutical or Ayurveda Aahara[2][5][8]
3. Ingredients and plant parts Each botanical and plant part allowed on that route (for FSSAI, listed in Schedule IV; for ashwagandha, roots only)[9]
4. Licence State Form 25-D or loan licence, or FSSAI central licence[2][6]
5. Label and claims Route-specific statements applied; no “approved by the Ministry of Ayush” wording[1][2][4][8]
6. Review Label and claims checked by a qualified regulatory adviser before artwork is printed

Conclusion

The choice between an AYUSH licence and FSSAI follows the product’s intended use. A therapeutic indication means an ASU drug licence from the state; a well-being or nutritional claim on a product with food-permitted botanicals means the FSSAI nutraceutical route and a central licence; a classical Ayurvedic food can use Ayurveda Aahara. Most problems arise in the overlap, so settle the classification, the plant parts and the claim wording before formulation is locked, and record the decision. For more on specification, testing and stability, see our herbal product development Q&A.

For brands & formulators

Food Research Lab’s regulatory and scientific research team can review a herbal product’s intended use, ingredients, plant parts and draft claims against the ASU, FSSAI nutraceutical and Ayurveda Aahara routes, and set out the licence and label requirements for the route you choose.

Our herbal formulation development team can then build the product to fit that route, from extract selection to pilot batches. See also our herbal product development sector page, or contact us with your brief.

In this series

What to do now
  • ✓Write down the intended use and the claim before choosing a format or a licence.
  • ✓Check every botanical and plant part against the route: Schedule IV for FSSAI, Rule 161 labelling for ASU drugs.
  • ✓Decide who will hold the licence: your own Form 25-D, a loan licence on a contract manufacturer, or an FSSAI central licence.
  • ✓Remove any “approved by the Ministry of Ayush” wording and any treat-or-cure claim from food-route artwork.
  • ✓For ashwagandha, use roots or root extract only and recheck the Karnataka High Court case before relying on the stay.
Your next step
Check your herbal product's route before you formulate
1Share the product concept, ingredients with plant parts, format and draft claims.
2FRL maps it to the ASU, FSSAI nutraceutical or Ayurveda Aahara route and lists the licence and label requirements.
3Get a gap list and formulation options before artwork and licensing.
Questions brands ask
Do I need an AYUSH licence or an FSSAI licence for a herbal product in India?

It depends on the intended use and the claim. An Ayurveda, Siddha or Unani medicine with a therapeutic indication needs a manufacturing licence from the state licensing authority under the Drugs and Cosmetics Rules.[2] A herbal supplement with a general well-being or nutritional claim is a food under the FSSAI nutraceutical regulations, and its manufacturer needs a central FSSAI licence.[6]

What is an AYUSH licence?

It is the common name for a state licence to manufacture Ayurvedic (including Siddha) or Unani drugs for sale, applied for in Form 24-D and issued in Form 25-D under Rules 153 and 154 of the Drugs and Cosmetics Rules.[2] The Ministry of Ayush does not issue it.

Homoeopathic medicines are licensed under separate provisions.

Can a herbal product have both an AYUSH and an FSSAI licence?

A single product should be classified under one route, with one set of label and claim rules. A company that makes both ASU medicines and foods can hold both kinds of licence, one for each product line.[1][7]

Which route applies to an ashwagandha root-extract capsule?

Either is possible, and the claim decides. Sold with general well-being wording, it fits the FSSAI nutraceutical route, using roots or root extract only.[9] Sold for a therapeutic indication, it is an ASU medicine that needs a state licence and a Rule 161 label.[2]

How do you get an AYUSH manufacturing licence in India?

Apply to the state licensing authority where the product will be made, in Form 24-D with the state’s checklist and fee.[2][3] The premises must meet Schedule T, and the GMP certificate (Form 26 E-I) is issued with the licence. A brand without its own factory can apply for a loan licence on a licensed manufacturer’s facility.[2]

References
  1. Koe, T. (2024, May 1). AYUSH products should not claim nutraceutical value – Indian authorities. NutraIngredients. https://www.nutraingredients.com/Article/2024/05/01/ayush-products-should-not-claim-nutraceutical-value-says-indian-regulator (cited for the Ministry of Ayush notice of 18 April 2024: Ayush products and nutraceuticals regulated by different laws, no nutraceutical-value claims, the Ministry does not grant manufacturing licences or approvals, “approved by the Ministry” claims incorrect, Drugs and Magic Remedies Act for advertising).
  2. Ministry of Health and Family Welfare, Central Drugs Standard Control Organisation. (2016). The Drugs and Cosmetics Act, 1940 and the Drugs and Cosmetics Rules, 1945 [as amended up to 2016]. https://cdsco.gov.in/opencms/export/sites/CDSCO_WEB/Pdf-documents/acts_rules/2016DrugsandCosmeticsAct1940Rules1945.pdf (cited for Rules 152 (state licensing authorities), 153 (Form 24-D), 153A (loan licence), 154 (Form 25-D, expert consultation), 157 (Schedule T, GMP certificate in Form 26 E-I) and 161 (labelling with botanical names and plant parts)).
  3. Directorate of AYUSH, Government of NCT of Delhi. (n.d.). Requirements for issuing a new license/renewal of license. https://ayush.delhi.gov.in/ayush/requirements-issuing-new-license-renewal-license (cited as an example of a state authority’s forms and checklists for ASU manufacturing and loan licences).
  4. Food Safety and Standards Authority of India. (2021). Compendium: Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and Novel Food) Regulations, 2016 (Version I, 29 September 2021). https://fssai.gov.in/upload/uploadfiles/files/Compendium_Nutra_29_09_2021.pdf (cited for the notified 2016 text and the “NOT FOR MEDICINAL USE” statement).
  5. Food Safety and Standards Authority of India. (2022). Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, and Prebiotic and Probiotic Food) Regulations, 2022 [Draft text operationalised by direction]. https://fssai.gov.in/upload/uploadfiles/files/Direction_New_compressed.pdf (cited for the five categories and application by direction from 1 April 2022).
  6. Food Safety and Standards Authority of India. (2022, March 31). SOP for mandatory modification of old methodology licence or migration of state licence for manufacturing of nutraceuticals and related products w.e.f. 01.04.2022 (encloses the September 2020 order on central licensing). https://fssai.gov.in/upload/advisories/2022/03/624561f927c4aSOP_License_Nutra_31_03_2022.pdf (cited for central licensing of nutraceutical manufacturers regardless of turnover).
  7. Takle, S. P., & Mahajan, U. (2026). Regulatory landscape of nutraceuticals in India: Current status, challenges, and a roadmap for harmonization. International Journal of Pharmaceutical Sciences, 4(5), 4880–4890. https://doi.org/10.5281/zenodo.20284587 (cited for therapeutic claims reclassifying a product as a drug, unclear food–drug boundaries, the 2018 Advertising and Claims and 2020 Labelling and Display Regulations, central licensing, the Drugs and Magic Remedies Act, and state drug inspectors in borderline cases).
  8. Press Information Bureau, Government of India. (2022, July 29). Ayurvedic Aahar products [Press release, Ministry of Ayush]. https://pib.gov.in/PressReleasePage.aspx?PRID=1846185 (cited for the Ayurveda Aahara Regulations, 2022: notification on 5 May 2022, Schedule A scope, exclusions, “AYURVEDA AAHARA”, logo and “ONLY FOR DIETARY USE”).
  9. Food Safety and Standards Authority of India. (2026, April 16). Advisory regarding non-use of Ashwagandha (Withania somnifera) leaves in crude or extract or any other form in food products (F. No. RCD-15001/11/2021-Regulatory-FSSAI; encloses Ministry of Ayush letter T-13020/4/2022-DCC-Part(2) of 15 April 2026). https://fssai.gov.in/upload/advisories/2026/04/69e0d84fcac2fAdvisory%20on%20non%20use%20of%20ashwagandha%20leaves%20in%20crude%20or%20extract%20or%20any%20other%20form%20in%20food%20products-%20reg.pdf (cited for Schedule IV permitting only ashwagandha roots and their extracts, leaves not permitted, and the Ayush letter: roots only in Ayush products, Rule 161 plant-part labelling, stated safety concerns about leaves).
  10. LiveLaw. (2026, May 19). Karnataka High Court stays FSSAI advisory restricting use of ashwagandha leaves in health supplements. https://www.livelaw.in/high-court/karnataka-high-court/karnataka-high-court-stays-centre-advisory-ashwagandha-leaves-nutraceuticals-534813 (cited for the interim stay limited to the petitioners in W.P. Nos. 14990/2026 and 15010/2026 and the next hearing on 8 June 2026).