Ayurvedic Medicines are produced by several thousand companies in India, but most of them are quite small, including numerous neighborhood pharmacies that compound ingredients to make their own remedies. It is estimated that the total value of products from the entire ayurvedic production in India is on the order of one billion dollars (US). There are today 30 companies doing a million dollars per year in business to meet the growing demand for ayurvedic medicines. The products of these companies are included within the broad category of FMCG (Fast Moving Consumer Goods) which mainly involves foods, beverages, toiletries, cigarettes etc.

Kerala is the cradle of Ayurveda and the traditional system of medicine. The Ayurvedic manufacturing sector in the State comprises nearly 760 units having GMP certification (report by Ayurvedic Medicine manufacturer's Association). Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite small. The total export earnings of the Ayurvedic medicines in 2001-202 were Rs.750 crores and is expected to increase by Rs.5000 crores by 2006. Medical tourism is a thriving activity in the state with huge employment potential. Creation of an advanced multi purpose analytical testing and standardization laboratory approved by the National Accreditation Board and Calibration of Laboratories caters to the needs of the Ayurvedic and Pharmaceutical Industry for meeting international specifications.

Kerala had mastered the art of curing through Ayurveda (The traditional medical science) many years ago. Kerala grows many herbs needed for their manufacture. The Kerala State medicinal plant board has 500 hectares of land under cultivation of medicinal plants to promote cultivation of specific herbs and medicinal plants to meet future demands. The ayurvedic drug manufacturers in Kerala with the state government and central assistance are putting up a Rs.62.5 crore company to set up a world standard QC lab, R&D facility for the industrial benefit with all the modern equipment for advanced drug standardization, Quality and efficacy. This will also develop own protocols of quality certification equivalent to other global standards.