8. ROLE OF MEDICINAL AND AROMATIC PLANTS IN NATIONAL ECONOMY AND THEIR EXPORT POTENTIAL

Written and reviewed by Dr. N. Sujith Kumar | Pharm.D Graduate from JNTUK | D.Pharmacy Academic Content Creator

ROLE OF MEDICINAL AND AROMATIC PLANTS IN NATIONAL ECONOMY AND THEIR EXPORT POTENTIAL: A TEACHER’S COMPREHENSIVE GUIDE

Welcome, future pharmacists and pharmaceutical scientists!

Medicinal and Aromatic Plants (MAPs) are botanical crude materials used for therapeutic and aromatic purposes in cosmetics, medicinal products, health foods, and other natural health products. The World Health Organisation (WHO) recognises the importance of traditional medicines, particularly in developing countries where 70-95% of the population relies on them for primary care, making them a valuable resource globally.

As a pharmacognosy educator with years of experience teaching the economic importance of medicinal plants, I have observed that students often underestimate the contribution of MAPs to national economies. Let me tell you: Medicinal and aromatic plants are not just sources of medicine—they are engines of economic growth, employment, and export revenue.

In this comprehensive guide, I will walk you through the role of medicinal and aromatic plants in the national economy and their export potential. I will cover the importance of MAPs, their contribution to the Indian economy, and the bright export prospects that India holds in the global market. By the end of this article, you will have a thorough understanding of the economic significance of these valuable plant resources. Let us begin!

Dpharmguru’s exam insights:

The role of MAPs in the national economy is frequently tested in pharmacognosy exams. Remember: India has about 2000 species of medicinal plants and over 1500 aromatic plant species. The global market for MAPs is worth more than $60 billion, growing at 6-8% annually. India’s foreign exchange earning potential from MAPs is about US$ 3000 million per annum. Key export items include Isabgol, Quinine, Ipecac, Rauwolfia, Sandalwood oil, and Jasmine oil. These are classic exam questions!

8.1. MEDICINAL PLANTS

Medicinal plants can be defined as the plants that possess therapeutic properties or exert beneficial pharmacological effects on the human or animal body. It also contains substances used for medicinal purposes or drug synthesis.

The therapeutic properties of drugs are due to the presence of complex chemical substances (secondary metabolites) in one or more parts of these plants. Based on their composition, these plant metabolites are categorised as alkaloids, glycosides, corticosteroids, essential oils, etc.

Medicinal plants are the foundation of healthcare systems with majority of the active ingredients in pharmaceutical drugs derived from natural products, either directly or indirectly. This still continues despite the arrival of synthetic and combinatorial chemistry.

8.2. AROMATIC PLANTS

Aromatic plants are those plants that have aromatic chemicals, which are volatile essential oils at room temperature. They contain odoriferous and volatile substances present in the roots, wood, bark, foliage, flowers, and fruits as essential oils, gum exudates, balsam, and oleo-resin.

These aromatic substances are used as germicides and anti-bacterial; however, mainly they are used in perfumery and the food-flavouring industries.

Techniques used to extract aromatic substances:

  • Distillation — most commonly used technique
  • Enfleurage
  • Maceration
  • Expression
  • Solvent extraction

Distillation is one of the most commonly used techniques for the separation of essential oils from the complex compound, except in case of jasmine and kewara flowers in which the fragrant constituents decompose.

8.3. MEDICINAL AND AROMATIC PLANTS IN NATIONAL ECONOMY

Medicinal and Aromatic Plants (MAPs) are important to many countries, including India, because they are used in pharmaceuticals, cosmetics, food, beverages, and fragrances preparation. They also produce income for local communities, who earn their livelihood by selling materials collected from the forests or by farming on farms. They also deliver a livelihood to millions of people associated with their cultivation, collection, and processing which further helps in the growth of the national economy.

8.3.1. Role of MAPs in National Economy

  • Pharmaceutical Industry: Provide raw materials for modern drugs, contributing significantly to the country’s GDP
  • Traditional Medicine: Ayurveda, TCM, and indigenous medicine rely on medicinal plants for cost-effectiveness and employment
  • Export Revenue: Countries export MAPs, essential oils, herbal extracts, and dry herbs, boosting foreign exchange earnings
  • Employment Generation: Cultivation, harvesting, processing, and marketing create employment in rural areas
  • Sustainable Agriculture: MAPs grown on marginal lands contribute to sustainable agricultural practices
  • Biodiversity Conservation: Cultivation and sustainable harvesting protect plants from over-exploitation
  • Cosmetics and Perfume Industry: Essential oils, fragrances, and flavours generate high demand domestically and internationally
  • Nutraceuticals and Dietary Supplements: Growing industry sector due to health benefits
  • Research and Development: Investment leads to discovery of therapeutic compounds, fostering innovation
  • Rural Development: Provides income for farmers and promotes sustainable land use practices

8.3.2. Importance of MAPs in Indian Economy

  • India has about 2000 species of medicinal plants
  • There are more than 1500 known aromatic plant species in India
  • India is one of the few countries where almost all the known medicinal plants can be cultivated
  • Plants of great demand: Opium poppy, Senna, Cinchona, and Ipecac
  • The Indian system of medicine (ISM) is a plant-based material medica
  • India is a major exporter of raw material and drugs from medicinal and aromatic plants
  • Aromatic plants are used in cosmetics, pharmaceutical preparations, perfumery, confectionery, ice-cream, aerated waters, disinfectants, and Agarbatti

8.3.3. List of Major MAPs

  • Seed husk and seed of Isabgol (Plantago ovata)
  • Quinine and quinidine alkaloids (Cinchona officinalis)
  • Ipecac root alkaloids (Cephaelis ipecacuanha)
  • Solasodine (berries of Solanum viarum)
  • Gudmar herb (Gymnema sylvestre)
  • Mehndi leaves (Lawsonia alba)
  • Sindura fruits (Bixa orelana)
  • Podophyllum (Podophyllum hexandrum)
  • Rauwolfia (Rauwolfia serpentina)
  • Guar gum (Cyamopsis tetragonolobus)

Essential oils exported regularly from India:

  • Jasmine otto and absolute (Jasminum grandiflorum)
  • Agar wood oil (Aquillaria agallocha)
  • Sandal wood oil (Santalum album)

8.4. MEDICINAL AND AROMATIC PLANT’S EXPORT POTENTIAL OF INDIA

India is a hub of medicinal and aromatic plants. The Ministry of Environment and Forests has reported around 9500 plant species having medicinal value. These important plant species should be preserved and also cultivated to meet the demand of domestic industries and to exploit the bright prospect for export.

About US$ 3000 million/annum is the foreign exchange earning potential of India from these medicinally important plants.

The global market for MAPs is worth more than $60 billion and is growing at 6-8% annually. India is a major exporter of MAPs, followed by China, Indonesia, and Brazil, whose exports exceed $1 billion annually.

India’s rich biodiversity and history of traditional medicine make it a major destination for MAP exports. It comprises more than 20,000 species, which includes more than 3,000 species used in traditional medicine.

Initiatives taken by the Government of India:

  • Providing financial support to farmers for MAP cultivation
  • Establishing export promotion councils for MAPs
  • Developing infrastructure for dealing out and exportation of MAPs
  • Exchanging trade discussions with other countries to facilitate MAPs cooperation

India’s export potential of MAPs extends beyond raw materials to include value-added products, such as herbal extracts, essential oils, and finished pharmaceutical products, showcasing India’s potential in the global market.

Dpharmguru’s exam insights:

The export potential of MAPs is frequently tested. Remember: India has 9500 medicinal plant species and over 20,000 total species. The global MAP market is worth over $60 billion. India’s earning potential is US$ 3000 million/annum. Key exported products include Isabgol, Quinine, Ipecac, Rauwolfia, Sandalwood oil, and Jasmine oil. Government initiatives include financial support, export promotion councils, and infrastructure development. These are classic exam questions!

SUMMARY TABLE: EXPORT POTENTIAL OF INDIAN MAPs

ParameterValue/Details
Total Plant Species in India> 20,000 species
Medicinal Plant Species~ 9,500 species
Species Used in Traditional Medicine> 3,000 species
Aromatic Plant Species> 1,500 species
Global MAP Market> $60 billion
Annual Growth Rate6-8%
India’s Export Earning Potential~ US$ 3,000 million/annum
Major ExportersIndia, China, Indonesia, Brazil
Key Exported MAPsIsabgol, Quinine, Ipecac, Rauwolfia, Guar gum, Sandalwood oil, Jasmine oil

FREQUENTLY ASKED QUESTIONS (FAQs)

1. What are Medicinal and Aromatic Plants (MAPs)?

Medicinal and Aromatic Plants (MAPs) are botanical crude materials used for therapeutic and aromatic purposes in cosmetics, medicinal products, health foods, and other natural health products.

2. How many medicinal plant species are found in India?

India has about 2000 species of medicinal plants according to traditional systems, and the Ministry of Environment and Forests has reported around 9500 plant species having medicinal value.

3. What is the global market value of MAPs?

The global market for MAPs is worth more than $60 billion and is growing at 6-8% annually.

4. What is India’s export earning potential from MAPs?

India’s foreign exchange earning potential from medicinal and aromatic plants is about US$ 3000 million per annum.

5. Which are the major MAPs exported from India?

Major MAPs exported from India include Isabgol (Plantago ovata), Quinine (Cinchona officinalis), Ipecac (Cephaelis ipecacuanha), Rauwolfia (Rauwolfia serpentina), Guar gum (Cyamopsis tetragonolobus), Sandalwood oil (Santalum album), and Jasmine oil (Jasminum grandiflorum).

6. What initiatives has the Government of India taken for MAP promotion?

The Government of India has implemented various measures including: providing financial support to farmers for MAP cultivation, establishing export promotion councils for MAPs, developing infrastructure for dealing out and exportation of MAPs, and exchanging trade discussions with other countries.

SUMMARY

Medicinal and Aromatic Plants are valuable natural resources that contribute significantly to the national economy. This guide covered:

  • Medicinal Plants: Plants with therapeutic properties containing secondary metabolites like alkaloids, glycosides, essential oils
  • Aromatic Plants: Plants containing volatile essential oils used in perfumery and food-flavouring industries
  • Role in National Economy: Pharmaceutical industry, traditional medicine, export revenue, employment generation, sustainable agriculture, biodiversity conservation, cosmetics, nutraceuticals, R&D, and rural development
  • Indian MAP Scenario: 2000 medicinal species, 1500 aromatic species, major demand for opium poppy, senna, cinchona, ipecac
  • Export Potential: Global market worth $60+ billion, India’s earning potential US$ 3000 million/annum
  • Government Initiatives: Financial support, export promotion councils, infrastructure development, trade discussions

As I always tell my students: “Medicinal and aromatic plants are not just healing resources—they are economic assets. India’s rich biodiversity and traditional knowledge make it a global leader in MAPs, and with proper cultivation and export strategies, this sector can transform rural economies.”

REFERENCES AND FURTHER READING

  • Pharmacy Council of India (PCI). (2022). Pharmacognosy Syllabus. New Delhi: PCI.
  • World Health Organization (WHO). (2022). Traditional Medicine Strategy 2014-2023. Retrieved from https://www.who.int.
  • Kokate, C. K., Purohit, A. P., & Gokhale, S. B. (2020). Pharmacognosy (50th ed.). Nirali Prakashan.
  • Ministry of Environment and Forests. (2022). Medicinal Plants of India. Government of India.
  • Department of Indian Systems of Medicine and Homeopathy. (2022). Medicinal Plants Board Report. Government of India.
  • Trease, G. E., & Evans, W. C. (2019). Trease and Evans’ Pharmacognosy (16th ed.). Elsevier.

Disclaimer: This article is for educational purposes only and does not constitute medical advice. Always consult qualified healthcare professionals for medical concerns. Pharmaceutical regulations and guidelines may vary by region—always refer to your local regulatory authorities for specific requirements.

Dr. N. Sujith Kumar Avatar

written by:
Dr. N. Sujith Kumar

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