Selling Ayurvedic products in India requires different licences depending on whether you manufacture yourself or use a third party manufacturer, and on what you sell.
To sell Ayurvedic products legally in India, you need a combination of licences that depend on your role in the supply chain, the regulatory category of the product, and the states in which you operate. If you are using a third party or contract manufacturer, your obligation set is different from that of the manufacturer. Neither party can ignore the other's requirements: both affect whether a product can be lawfully placed on the market.
The AYUSH manufacturing licence is issued under the Drugs and Cosmetics Act, 1940, by the state licensing authority, typically the State Drug Controller. It authorises a facility to manufacture Ayurvedic, Siddha, and Unani drugs. Any entity that physically produces Ayurvedic drugs at its premises must hold this licence.
In a third party manufacturing arrangement, the contract manufacturer holds the AYUSH manufacturing licence. The brand owner does not need a manufacturing licence because it is not the entity manufacturing the product. Raasa Ayurveda holds AYUSH licence A-4177/2009, issued in Uttar Pradesh, which covers the manufacturing activities at its Kanpur facility.
If you are evaluating a manufacturer, confirming that their AYUSH licence is current, covers the specific categories of products you want, and has not lapsed or been restricted is a basic due-diligence step. For guidance on what else to check when selecting a manufacturer, see How Do You Choose an Ayurvedic Contract Manufacturer?.
GMP stands for Good Manufacturing Practice. In the context of Ayurvedic drugs in India, the applicable standard is Schedule T of the Drugs and Cosmetics Act. Schedule T sets out the minimum requirements for premises, equipment, personnel, raw material testing, batch records, in-process controls, finished product testing, and documentation that a licensed Ayurvedic manufacturer must comply with.
A GMP certificate is issued by the state licensing authority after an inspection confirms that the facility meets Schedule T requirements. It is separate from the manufacturing licence itself, though both are required for a compliant Ayurvedic manufacturing operation.
Raasa Ayurveda holds GMP certificate D-5755/09. When a brand owner works with a GMP-certified manufacturer, the batch manufacturing records, standard operating procedures, and quality control data that Schedule T requires are available as part of the manufacturing documentation. This matters when a brand owner faces a regulatory query or a customer complaint in the market.
For more on what GMP-compliant quality control involves in practice, see Ayurvedic Quality Control and GMP.
FSSAI (Food Safety and Standards Authority of India) licensing applies when an Ayurvedic product is classified as a food product rather than a drug. This typically includes products such as herbal health foods, nutraceuticals presented as food supplements, and some chyawanprash and herbal jam preparations that are marketed as food rather than as drugs under the Drugs and Cosmetics Act.
The boundary between Ayurvedic drugs and Ayurvedic food products is not always obvious, and regulatory classification can depend on the product's ingredient list, labelling claims, and whether it appears in the Ayurvedic pharmacopoeia as a drug. If a product makes therapeutic claims, it is more likely to be treated as a drug.
Raasa Ayurveda holds FSSAI licence 22722647000052, which covers its operations for food-category products manufactured at the Kanpur facility.
A brand owner who does not manufacture but sells Ayurvedic drugs in the market may need a wholesale or retail drug licence, depending on the state and the nature of the products being sold. Some states require a loan licence, which is a specific type of licence that permits a brand owner to have products manufactured at a licensed facility and sell them under its own name.
The following table summarises the typical licence responsibilities in a third party Ayurvedic manufacturing arrangement:
| Licence or Approval | Held by Manufacturer | Held by Brand Owner |
|---|---|---|
| AYUSH Manufacturing Licence | Yes | No |
| GMP Certificate (Schedule T) | Yes | No |
| FSSAI (where applicable) | Yes (for the facility) | May need separate registration for distribution |
| Drug Licence (wholesale or retail) | Not required for manufacturing only | May be required depending on state and product |
| Loan Licence | Not applicable | Required in some states for selling under own brand |
| Label Compliance | Advises on permissible claims | Responsible for label content and declarations |
Regulatory requirements vary between states, and licensing rules are updated periodically. Always consult a qualified regulatory consultant or the relevant State Drug Controller's office for the current requirements applicable to your specific products and territory.
Labelling for Ayurvedic drugs in India is governed by the Drugs and Cosmetics Act and the rules made under it, as well as the Legal Metrology (Packaged Commodities) Rules for pre-packaged goods. The label must include the name of the preparation, ingredients, dosage instructions, net quantity, batch number, manufacturing date, expiry or best-before date, the name and address of the manufacturer, the name and address of the marketing entity (brand owner), and the licence numbers of the relevant parties.
Claims on the label must be consistent with the regulatory category of the product. Drug claims on a food-licensed product, or claims that go beyond what the Ayurvedic pharmacopoeia or the product licence permits, are a common source of regulatory action. Brand owners are responsible for the label content they approve, even when the physical product is made by a third party.
This is particularly important when the brand owner is different from the manufacturer: both names and addresses typically appear on the label, with a designation such as "Manufactured by" for the factory and "Marketed by" for the brand. Working through the label artwork with the contract manufacturer before printing avoids errors that require a label reprint after the batch is produced.
The practical division is this: the manufacturer is accountable for what happens inside the factory. The brand owner is accountable for what happens in the market. A contract manufacturer who holds a valid AYUSH licence and GMP certificate gives the brand owner a documented, inspectable manufacturing base. A brand owner who holds the correct drug or loan licence and maintains compliant labels gives the manufacturer confidence that the products will be sold lawfully.
For an end-to-end explanation of how the third party manufacturing process works from enquiry to dispatch, see What Is Third Party Ayurvedic Manufacturing and How Does It Work?. For guidance on starting your own branded Ayurvedic range using a contract manufacturer, see Start Your Own Ayurvedic Brand.
You can also review the range of product categories available through Raasa Ayurveda's contract manufacturing service, including Mixed Churna, Guggulu, and Avaleha Pak.
For specific questions about the licences held by Raasa Ayurveda or to discuss documentation requirements for your planned product range, call +91 9415128217 or write to raasaayurveda@gmail.com. The team is based in Kanpur and can clarify what documentation accompanies each consignment.
Yes. The manufacturing licence is held by the contract manufacturer, not the brand owner. However, you may still need a drug licence, loan licence, or wholesale licence depending on the products you sell and the state in which you operate. Label compliance is always the brand owner's responsibility. Consult a regulatory consultant for your specific situation.
A loan licence is a state-issued authorisation that permits a brand owner to have Ayurvedic products manufactured at a licensed third party facility and market them under its own name and licence number. Requirements and terminology vary between states. Some states require it for any brand selling Ayurvedic drugs it has not manufactured at its own licensed facility.
Yes. Raasa Ayurveda holds AYUSH licence A-4177/2009 and GMP certificate D-5755/09, both issued by the relevant Uttar Pradesh authority. It also holds FSSAI licence 22722647000052. These documents confirm that the Kanpur manufacturing facility meets the licensing and good manufacturing practice requirements under the Drugs and Cosmetics Act and Schedule T.
The brand owner is responsible for the label content it approves and prints. The manufacturer can advise on permissible claims and the declarations required for its manufacturing licence number to appear correctly, but the brand owner signs off on the final artwork and bears regulatory responsibility for any non-compliant claims in the marketplace.
Raasa Ayurveda, 49/72-A, Naughara, Kanpur 208001, Uttar Pradesh, India. Telephone +91 9415128217. Email raasaayurveda@gmail.com.