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    Selling Ayurvedic products online: the licence, the label and the claims to avoid

    The state licence or loan licence behind every Ayurvedic product, what rule 161 puts on the label, and the claims the Ministry of Ayush has warned sellers against.

    Illustration: an Ayurvedic product label with its licence number and ingredients
    Yashh Mittal
    Yashh Mittal
    Founder
    26 Aug 2026 · 4 min read
    Topic: Business setup & legal
    In short

    To sell Ayurvedic products online, the maker needs a manufacturing licence or loan licence from the State Licensing Authority. Label each pack as rule 161 requires, never claim approval by the Ministry of Ayush, and avoid claims like '100% safe' or 'permanent cure'.

    Medicine or food?

    Decide this first, because the two follow different laws. An Ayurvedic medicine falls under the Drugs and Cosmetics Act and its rules. A herbal food or drink falls under FSSAI. The Ministry of Ayush has said one unit may make both, as long as it takes care to avoid cross-contamination. But each product still needs the right licence for what it is. This guide covers products sold as Ayurvedic medicines.

    The licence your products need

    The maker of an Ayurvedic medicine needs a licence to manufacture for sale. You apply in Form 24-D to the Licensing Authority your state appoints, and the licence is issued in Form 25-D. The authority first consults an expert in that system of medicine, and the rules give it three months to issue the licence. Each set of premises needs its own licence. If you have no factory, you can apply in Form 25-E for a loan licence. That lets you use the facilities of a maker who already holds a licence. If you only resell other brands, stock only licensed products with full labels.

    Licensed does not mean approved

    In April 2024, the Ministry of Ayush issued an advisory to manufacturers. It says the Ministry does not grant a licence or approval for any Ayush drug. A state licence is permission to make and sell that product. It is not approval by the Ministry. Any label or advert that says 'Approved by Ministry of Ayush' can lead to legal action.

    Claims the Ministry has flagged

    Claim or markWhat the advisory says
    'Approved' or 'Certified by Ministry of Ayush'The Ministry grants no such approval, and warns of legal action
    '100% Safe' or 'Free from side effects'Named as a claim some makers use, against the labelling and advert rules
    'Guaranteed Treatment' or 'Permanent cure'Named in the same list, and adverts fall under the Drugs and Magic Remedies Act, 1954
    A green logo with '100% vegetarian'Named in the same list of problem labels
    Nutraceutical valueNamed as a claim Ayush drugs should not make

    What the label must show

    Rule 161 of the Drugs and Cosmetics Rules sets the label. It must list every ingredient, with botanical names, the plant part used and the quantity. It must show the name of the medicine, the net content and the maker's name and address. It also needs the manufacturing licence number, a batch number and the date of manufacture. Add the words 'Ayurvedic medicine', and 'For external use only' where that applies. Some medicines for internal use contain a substance listed in Schedule E(1). Their label must also say 'Caution: To be taken under medical supervision', in both English and Hindi. If the ingredient list is too long for the label, you may print it on a sheet inside the pack. The label must then say so.

    Selling on your own website

    Your product page works like an advert, so the same limits apply. Describe the product the way the label does. Name the ingredients, the dose on the pack and the maker. Leave out cures, guarantees and 'no side effects'. Show the licence number, so buyers can see who made it. On The Storemate, every product gets its own page with a description you control, so the listing can match the label word for word. For claims you are unsure about, check with a lawyer.

    Frequently asked questions

    Does the Ministry of Ayush approve Ayurvedic products?

    No. The Ministry of Ayush says it does not grant manufacturing licences or approval for any Ayush drug. Licences come from the State Licensing Authority, and a product must not claim Ministry approval.

    Can I sell Ayurvedic products made by another company under my brand?

    Yes, through a loan licence. The Drugs and Cosmetics Rules let a licensing authority grant one, applied for in Form 25-E, to someone who uses a licensed maker's facilities instead of their own.

    Which law covers adverts for Ayurvedic products?

    The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 covers drug adverts, including Ayush drugs. The Consumer Protection Act, 2019 also covers misleading advertisements.

    Sources

    • Ministry of Ayush - advisory on labelling and claims for ASU&H drugs (18 April 2024)
    • Ministry of Ayush - The Drugs and Cosmetics Act and Rules
    • Ministry of Ayush - clarification on ASU and FSSAI products in one unit

    Keep reading

    • ComplianceFSSAI registration for selling food online from home: what you need
    • ComplianceHow to register a trademark for your brand name in India
    • PlaybooksFinding a manufacturer in India: from shortlist to first order
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