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Ayurvedic system of medicine is as old as the Vedic age. Now–a–days people give preference to the Ayurvedic medicines as the allopathic medicines are costlier and have side effects. Ayurvedic medicines are based on plants, animals extract and minerals both in single ingredient drugs and compound formulations, however, Ayurveda does not rule out any substances from being used as a potential source of medicine. Ayurvedic compound formulations are mainly divided into two groups viz. (1) Kasthausadhi (predominantly plant drugs) and (2). Rasausadhi (predominantly metals and minerals). There are several categories of Kasthausadhi formulations such as Asavaristra, Avleha, Grafa Churena, Taila etc. and of Rasausadhis such as Bhasma, Pisti, Lauha, Kapibadkva, Rasayana etc. The Ayurvedic drugs are derived from vegetable sources from the various parts of the plant like root, leaf, flower, fruit extrude or plant as a whole. There are about 21 varieties of compound formulations in which some of the single drugs of animal origin (52 Nos). Mineral origin (55 Nos.) and plant origin (351 Nos.) are used. There details of the single drugs and other particulars can be had from the Ayurvedic formulary of India, published by Govt. of India, Ministry of Health and Family Welfare. Market Potential There is more recognition for nonallopathic system of medicines in the country now than the past few decades. The concept of alternative system of treatment notably herbal and Ayurvedic medicines therapy is gaining ground and attracting attention worldwide. There is more and more scientific research being conducted in our country for treatment of various diseases by Ayurvedic and herbal therapy. A large number of diseases have Ayurvedic treatment much superior to the other system of medicines and this has been recognized world over. Thus Ayurvedic medicines/drugs are becoming popular day-by-day and demand for its usage is increasing not only in the country but also worldwide the inherent quality of Ayurvedic treatment of having negligible side/after effects, has made great potential for its production. A large number of medicinal plants, herbs, shrubs etc. are available in our country in the hilly/forest regions. In order to boost the production of Ayurvedic/herbal drugs, Govt. of India has also set up a Board namely Indian system of Medicine and Homeoepathy to encourage production of Ayurvedic medicines specially in the regions where basic raw materials are available in plenty. Thus there is a great potential for Ayurvedic medicines not only in the country but for export purpose also.