Abstract
This paper revels that the socio-economic results of the Ayurvedic healthcare industry on the living of local residence in Nepal. It also examines current trends and difficulties in medicinal plant cultivation, the economic circumstances of those participating in the region, and plans for sustainable harvesting and preserving quality. It is based on descriptive and analytical research design by using first-hand information gathered through closed-ended questionnaires. After the data collection, final analyzed the data by computer software and implemented descriptive statistics method. The Ayurvedic medicine sector in Nepal, provides various opportunities for local economic development by increasing cultivation, processing, and commercialization of medicinal plants. Nevertheless, there are various difficulties obstructing the understanding of these possible advantages. Offering consistent manufacturing grades in Ayurvedic medicine will boost consumer confidence and expand market reach. The Ayurveda industry supplies notable employment opportunities and provides as a footpath for entrepreneurship, especially for women encouraging their empowerment and financial self-determination. The workforce mainly consists of older, married individuals, who view it as a safe source of income. The impact on livelihoods is moderately positive, driven by job creation and income generation. These factors show a weak but positive link to livelihood improvement no single one is essential but combining them creates much stronger results. Innovations like digital marketing and improved production methods are expected to boost productivity and market reach. Adopting modern technology will drive product innovation and operational efficiency. Despite promising market opportunities and government support, further advances in finance, policies, and technology are still needed.
Keywords
Socio-economic, Income Generation, Market Opportunities, Government Support, Livelihood
1. Introduction
Ayurveda describes a traditional medicine system that outlines its beginnings in ancient India dating back more than 3000 years to grow as one of the historical systems focused on absolute healing since its foundation. The Sanskrit combination of Ayur and Veda which means "Science of Life" produces the word "Ayurveda"
| [18] | Sen, A. (1999). Development as freedom. Oxford University Press. |
[18]
. South Asian cultural and spiritual practices base Ayurvedic medicine which has been treating diseases and preserving health throughout multiple centuries
| [19] | Sharma, H., & Clark, C. (1998). Contemporary Ayurveda: Medicine and research in Maharishi Ayur-Veda. Churchill Livingstone. |
[19]
. Ayurveda exists as the foundation of healthcare systems throughout South Asia according to historical records. The Vedic period established the origins of Ayurveda while the Charaka Samhita and Sushruta Samhita provided historical information about its fundamental principles and techniques
| [27] | Wujastyk, D. (2003). The roots of Ayurveda: Selections from Sanskrit medical writings. Penguin Classics. |
[27]
. Through time Ayurveda expanded across India before becoming influential for the medical systems of territories in surrounding areas such as Nepal. Since the early centuries Nepal has maintained an Ayurveda tradition through local physicians who utilized natural indigenous plants and native medical intelligence to heal their patients
| [24] | Subedi, B. (2006). Commercialization of medicinal plants in Nepal: Conservation and livelihood implications. Journal of Mountain Science, 3(3), 197-204. |
[24]
. An integral component of Nepalese modern healthcare emerged when the country established Ayurveda as part of its mainstream medical practices. Ayurvedic medicine in Nepal now encounters considerable increase by becoming a necessary sector for economic development. Industry empowers people to find work because it includes rural societies to grow medicinal plants and execute collection and processing tasks
| [23] | Singh, A., (2005). Employment generation through Ayurvedic enterprises in rural areas. Rural Development Quarterly, 15(2), 112-124. |
[23]
. The sustainable operation along with commercial advancements of these resources indicates the capacity to decrease local poverty while establishing chances for economic freedom. The rising international demand for natural health products created opportunities for Nepal to develop its Ayurvedic industry which shows strong potential for national economic growth
| [3] | Bodeker, G., & Kronenberg, F. (2002). A public health agenda for traditional, complementary, and alternative medicine. American Journal of Public Health, 92(10), 1582-1591. |
[3]
. Ayurveda achieves its importance through its comprehensive health strategy because it treats all aspects of well-being including mental, physical and spiritual components. Ayurvedic medicine focuses on finding illness root causes to balance patients' systems according to Ayurvedic traditions
| [7] | Frawley, D. (2000). Ayurvedic healing: A comprehensive guide. Lotus Press. |
[7]
. Ayurvedic medicine has received worldwide acceptance because healthcare facilities worldwide incorporate these practices as complementary and alternative treatments. Ayurveda maintains crucial cultural value in Nepal because local people link it with their authentic healing arts and religious beliefs
| [13] | Manandhar, N. P. (2002). Plants and people of Nepal. Timber Press. |
[13]
.
The Sanskrit word Ayurveda means “science of life” while remaining the oldest complete medical tradition that exists currently. During the Vedic period of ancient India Ayurveda emerged three thousand years ago when early practitioners combined first practitioners who used methods of philosophy and spiritual understanding with empirical practices for health care
| [12] | Lad, V. (2002). Textbook of Ayurveda: Fundamental principles. Ayurvedic Press. |
[12]
. Total theories for healthcare diagnosis and treatment emerged from the initial framework established through Rigveda and Atharvaveda texts during the publication of Charaka Samhita and Sushruta Samhita texts
| [23] | Singh, A., (2005). Employment generation through Ayurvedic enterprises in rural areas. Rural Development Quarterly, 15(2), 112-124. |
[23]
. Many decades of exposure led Ayurvedic medicine to reach advanced phases of development through experts who established practical and theoretical aspects of its knowledge base. Traditional concepts present in Ayurvedic texts enable the medical system to adapt to new knowledge thus ensuring its applicability across changing times and communities. Throughout recent years the world has discovered the essential value of natural integrative medicine leading to an increased global presence of Ayurveda.
The Ayurvedic medicine sector in Nepal has expanded considerably during recent decades since it serves both as traditional healthcare and developing business activities. The combination of traditional and modern approaches in healthcare has allowed for the creation of a special marketplace focused on meeting international and local client demands. The Ayurveda medicine trade of Nepal experienced historical transformations according to foundational examinations by Uprety et al.
| [26] | Uprety, Y., Poudel, R. C., Gurung, J., & Chettri, N. (2010). Indigenous use and commercialization of medicinal plants in Nepal. Journal of Ethnobiology and Ethnomedicine, 6, 32-45. |
[26]
and Sharma et al. economic analyses.
The Ayurvedic industry remains to face large-scale difficulties that include both quality and absence of quality. The research by Devkota et al.
| [6] | Devkota, S., Sharma, B., & Gautam, R. (2022). Assessing the factors influencing Ayurvedic products in Nepal. Journal of Ethnopharmacology, 298, 112345. |
[6]
surveys manufacture inconsistency concerns while Sharma and Thapa
| [20] | Sharma, R., & Thapa, S. (2018). Role of Ayurvedic medicine in enhancing rural livelihood. Journal of Rural Development Studies, 35(2), 121-135. |
[20]
declare that unconventional quality process discourages market growth and consumer trust (2022). The business structure for Ayurvedic medicine in Nepal needs further evaluation of its regulatory systems. The research by Gautam et al.
| [8] | Gautam, R., Sharma, B., & Devkota, S. (2021). Policy and regulation of herbal medicine in Nepal. Journal of Traditional and Complementary Medicine, 11(2), 230-239. |
[8]
communicates that dysfunctional regulatory management hinders the establishment of standard quality parameters therefore creating concerns like Saper et al.
| [16] | Saper, R. B., Phillips, R. S., Sehgal, A., & Khouri, N. (2004). Heavy metal content in Ayurvedic herbal medicine products. Journal of the American Medical Association, 292(23), 2868-2873. |
[16]
who revealed safety problems when Ayurvedic products reach foreign markets.
The Sustainable Livelihood Framework of Chambers and Conway
| [4] | Chambers, R., & Conway, G. (1992). Sustainable rural livelihoods: Practical concepts for the 21st century. IDS Discussion Paper 296. |
[4]
is a complex system that uses natural including financial as well as human and physical together with social capital domains to understand how individuals maintain their living requirements. The framework working in this manner finds perfect application within the Ayurvedic medicine sector because people situated in proximity to Godawari Municipality maintain their existence through activities related to medicinal plant cultivation and processing as well as trading. Sustainable livelihoods exhibit limited sensitivity to both internal and external disturbances while maintaining economic sustainability using local resources as described by Scoones
| [17] | Scoones, I. (1998). Sustainable rural livelihoods: A framework for analysis. IDS Working Paper 7(2), 546-561. |
[17]
.
Traditional knowledge and indigenous practices have preserved and transmitted medicine knowledge through time according to Berkes
| [2] | Berkes, F. (1993). Traditional ecological knowledge in perspective. Traditional Ecological Knowledge: Concepts and Cases, 7(5), 1-9. |
[2]
. According to Agrawal traditional knowledge systems show adaptability through constitutional change
| [1] | Agrawal, A. (1995). Dismantling the divide between indigenous and scientific knowledge. Development and Change, 26(3), 413–439. |
| [21] | Shiva, V. (2000). Protecting our biological and intellectual heritage in the age of biopiracy. Research Foundation for Science, Technology, and Natural Resource Policy. |
[1, 21]
The situation demands both intellectual property rights protection and community-based resource management to create sustainable livelihood benefits in the Ayurvedic industry.
The Socio-Economic Development Theory which
| [18] | Sen, A. (1999). Development as freedom. Oxford University Press. |
[18]
established explores how economic chances impact human well-being and decrease poverty levels. The sustainable business models established in traditional medicine sectors will boost the standard of living through the expansion of entrepreneurship and local enterprise growth in accordance to Todaro and Smith
| [25] | Todaro, M. P., & Smith, S. C. (2015). Economic development (12th ed.). Pearson. |
[25]
. According to the Socio-Economic Development Theory, it is necessary to adopt policies that support equitable growth between businesses and local communities who engage in ayurvedic medicine.
The research conducted by Rajan and Nair
| [14] | Rajan, R., & Nair, K. (2022). Socio-economic benefits of Ayurvedic tourism in Kerala: A mixed-methods study. International Journal of Tourism Cities, 8(2), 315-330. |
[14]
evaluated the economic value of Ayurvedic tourism on local communities for Kerala's economic advancement. The research assessed how wellness tourism based on Ayurveda affects both employment numbers and income generation together with regional development indicators. The draft that combined quantitative and qualitative techniques allowed the team to collect data through surveys directed at local stakeholders and to conduct interviews with resort owners together with practitioners and workers. The research employed descriptive methods to obtain quantitative trends of employment alongside qualitative findings regarding economic modifications. Over thepast decade, research by Saha and Chatterjee
| [15] | Saha, P., & Chatterjee, K. (2021). Employment generation through Ayurvedic enterprises: Evidence from rural India. Indian Journal of Labour Economics, 64(2), 439-456. |
[15]
has examined how many jobs are created by Ayurvedic enterprises in rural India. The goal was to analyzelong-term trends in job creation and income distribution. Ayurvedic Medicine Enterprises and Rural Development: A Socio-economic Analysis. Through descriptive-causal research the authors described Ayurvedic socioeconomic attributes within a region possessing strong medico-spiritual heritage located in Kerala, India. As researchers investigated 47 medical enterprises for 3 years, they discovered these businesses gave rise to 12.7 full-time positions annually per $1 million of investment which exceeded the state's average manufacturing job creation by 38%. Each enterprise within the study produced 9.3 apprentice graduates per year according to calculations through analytical models. The research demonstrated significant non-market effects by revealing that communities where Ayurvedic units operated experienced both reduced migration rates by 23% and a 17% higher employment participation of women. The authors calculated a 6.2% boost in local gross domestic product (GDP) when Ayurvedic enterprise density expanded by 10%. The researchers alerted about a developing challenge which involves the 41% difference in knowledge transfer between generations as younger coding practitioners prefer cutting-edge methods instead of traditional approaches.
These empirical learning provide a complete picture of the social-economic impacts of the Ayurvedic medicine industry including social and economic contribution of the business, market trends, policy implications of the industry and supply chain issues. Together, these learning explain on the effects of the Ayurvedic business on the local livelihoods and offer recommendations to enhance the sustainability and growth of this sector.
Many regions now find Ayurvedic medicine business activity to be a vital economic force
| [9] | Gurung, J. (2010). Medicinal plants of Nepal. Department of Plant Resources, Nepal. |
[9]
. The practice of growing medicinal plants along with their later harvest enables many households to generate monetary income. Local Ayurvedic pharmacies along with pharmaceutical companies maintain steady demand for raw materials by acquiring these plants
| [22] | Shrestha, P. M. (2015). Medicinal plant diversity and use in the highlands of Nepal. Journal of Ethnopharmacology, 166, 12-20. |
[22]
. Secondly, the practice of Ayurvedic healing by local practitioners generates income and preserves traditional knowledge. Many families in the region have passed down Ayurvedic practices through generations, making it an integral part of their cultural heritage
| [10] | Joshi, A. R. (2018). Traditional knowledge and practices of Ayurveda in Nepal. Nepalese Journal of Ayurveda, 12(1), 45-52. |
[10]
.
The sustainability of the Ayurvedic medicine business requires resolving multiple challenges even though it offers numerous benefits. The improper regulation and absence of quality control allow substandard or adulterated products to enter the market
| [5] | Chaudhary, R. P. (2000). Biodiversity in Nepal: Status and Conservation. S. Devi and Tec press Books. |
[5]
. The inadequate management of the industry endangers the good reputation of local businesses while exposing consumers to potentially harmful health risks. Local producers face difficulties accessing modern market information and advanced technological resources due to which they struggle to succeed in export markets
| [11] | Kumar, S., Dobos, G. J., & Ramp, T. (2016). The significance of Ayurvedic medicinal plants. Journal of Evidence-Based Complementary & Alternative Medicine, 22(3), 494-501. |
[11]
. Environmental damage combined with climate change creates a critical situation for medicinal plant resources so sustainable management practices become essential to secure plant availability. Global health challenges need organizations from all sectors to unite with government agencies and non-governmental bodies and with the support of residents. Introduction of workplace, the Godawari Municipality in Lalitpur District of Bagmati Province received its formal establishment on December 2nd, 2014, through the integration of Badikhel Village Development Committee along with Bisankhunarayan Village Development Committee and Godamchaur Village Development Committee and Godawari Village Development Committee and Thaiba Village Development Committee. The Godawari municipality covers 35.1 square kilometers, and its population reached 28,793 residents based on the 2011 census statistics. The natural and biological wealth of Godawari attracts scientific research on medicinal plants because it contains different botanical gardens and extensive natural forests. This research focused on the socio-economic of this business on the livelihood of local people, providing insights into its challenges and opportunities. These research studies offer important findings about medicinal plants but fail to investigate the economic effects of Ayurvedic medicine business operations on neighborhood survival strategies which proves why more focused analysis is necessary. The worldwide trend toward natural and holistic healthcare practices has failed to boost Ayurvedic businesses in Nepal because local businesses lack research development alongside poor-quality controls and insufficient use of modern marketing approaches.
Existing research focuses heavily on India's Ayurvedic sector (e.g., Kerala studies by
| [14] | Rajan, R., & Nair, K. (2022). Socio-economic benefits of Ayurvedic tourism in Kerala: A mixed-methods study. International Journal of Tourism Cities, 8(2), 315-330. |
[14]
emphasizing economic impacts like jobs and GDP but overlooking Nepal-specific contexts. Nepal studies
| [6] | Devkota, S., Sharma, B., & Gautam, R. (2022). Assessing the factors influencing Ayurvedic products in Nepal. Journal of Ethnopharmacology, 298, 112345. |
[6]
;
| [8] | Gautam, R., Sharma, B., & Devkota, S. (2021). Policy and regulation of herbal medicine in Nepal. Journal of Traditional and Complementary Medicine, 11(2), 230-239. |
[8]
highlight quality and regulatory challenges yet lack integrated analysis of livelihoods using frameworks like Chambers and Conway
| [4] | Chambers, R., & Conway, G. (1992). Sustainable rural livelihoods: Practical concepts for the 21st century. IDS Discussion Paper 296. |
[4]
or
| [18] | Sen, A. (1999). Development as freedom. Oxford University Press. |
[18]
. No comprehensive work examines Godawari Municipality's local dynamics, such as medicinal plant trade, workforce demographics, and sustainable models, nor links them to policy solutions for market expansion. This paper fills these gaps by applying the Sustainable Livelihood Framework and Socio-Economic Development Theory to Nepal's Ayurvedic sector. It provides empirical data on local livelihoods, quality improvements, and growth strategies, offering actionable recommendations for regulators, businesses, and communities to enhance sustainability, reduce poverty, and boost economic contributions in a Nepali context.
Local business owners within Godawari encounter the same market obstacles which prevent expansion growth. This research studies the obstacles that affect Ayurvedic business economic growth to develop recommendations that strengthen their impact on the local communities of Godawari Municipality. This paper will deal with the following research questions. What are the current practices and challenges in the cultivation and processing of medicinal plants and how does participation in the Ayurvedic medicine business impact the social and economic status of residents.
The objectives of this article are
1) To examine the current practices and challenges in the cultivation and processing of medicinal plants for Ayurvedic medicine in Godawari Municipality, Nepal.
2) To evaluate the socio-economic effect of participation in the Ayurvedic medicine business on local communities.
2. Methodology
This paper uses descriptive and exploratory research designs. Primary data comes from field surveys, interviews, economic assessments, and structured questionnaires distributed to local people via Google Forms. Secondary data includes books, journals, reports, and organizational websites. The total populations of the study are the people who live in local people local area of Nepal. The aggregate of population inspection for the learning is according to following Models:
Where,
Z=1.96 (Z-score for 95% confidence level)
P=0.5 (estimated proportion of the population with the characteristic of interest, used when unknown for maximum variability)
The total population has been considered as 1,000 individuals, comprising only those engaged in the Ayurvedic medicine business within Godawari Municipality, the study ensures a balanced representation of the Ayurvedic business community, capturing insights from areas with both high and low engagement in this sector.
The sample includes 278 participants. Interviews focused on the social and economic impacts of the Ayurvedic medicine business. This approach effectively gathered primary data across diverse groups, including different genders, ages, education levels, income groups, and opinions. Descriptive statistics include age, gender, education, family size, and frequency distributions. Correlation analysis presents relationships between dependent and independent variables and regression analysis shows the impact of independent variables on dependent variables. All the data were analyzed using SPSS software, including means, standard deviations, and ranges to describe participant characteristics.
3. Results
Demographic and Socio-economic characteristics
Table 1. Respondents Perception towards Employment Generation.
Statements | Minimum | Maximum | Mean | Std. Deviation |
The Ayurvedic medicine business has created sufficient job opportunities in Godawari Municipality. | 1.0 | 5.0 | 3.960 | 0.956 |
Local people have better access to employment due to the expansion of Ayurvedic medicine businesses. | 1.0 | 5.0 | 4.060 | 0.874 |
Ayurvedic businesses provide stable and long-term employment for local residents. | 1.0 | 5.0 | 4.052 | 0.897 |
The industry has encouraged self-employment and entrepreneurship among local people. | 1.0 | 5.0 | 3.864 | 1.063 |
Seasonal employment in Ayurvedic medicine businesses provides sufficient income for workers | 1.0 | 5.0 | 4.096 | 0.864 |
Weighted Average Mean | 1 | 5 | 4.006 | 0.082 |
Source: Field Survey, 2025
Around 70 percent female (194 people) and 30.2 percent male (84 people) of the respondents and women's strong role in Ayurvedic work and opportunities for greater empowerment. Most are 50 and above (106 people, 38.1), then 40-49 (99 people, 35.6%), 30-39 (40 people, 14.4%), and under 30 (33 people, 11.9%). Older adults (77.3% over 40) dominate, suggesting Ayurveda appeals more to experienced generations, while youth may prefer modern healthcare. Out of total respondents, 63.7 percent married, 36.3 percent unmarried. Married adults form the core workforce. Monthly Income (129 respondents): 24.1 percent earn below Rs. 15,000, 16.4 percent (Rs. 15,001-25,000), 14.7% (Rs. 25,001-50,000), 14.7 percent (above Rs. 50,000), 11.0 percent unspecified. Most earn low incomes, highlighting the need for better economic opportunities. These data reveal a workforce of mostly older, married women with modest earnings, pointing to real potential for empowerment, youth engagement, and income growth in this vital community sector.
The Ayurvedic medicine business significantly contributes to employment generation in Godawari Municipality. It not only provides stable and long-term jobs but also enhances access to employment for the local population. Additionally, seasonal employment in the industry is perceived as a reliable source of income. Overall, the weighted average mean of 4.006 reinforces a positive outlook on the employment impact of Ayurvedic businesses in the region. The various statements related employment opportunities towards the livelihood of people from Ayurvedic business. The respondents have rated from minimum (1) to Maximum (5) from refusing to agree. The average values of the statements range from 3.864 to 4.096, suggesting an overall positive perception of employment opportunities in this sector. Specifically, the highest mean score (4.096) is for the statement, “Seasonal employment in Ayurvedic medicine businesses provides sufficient income for workers,” indicating strong agreement that seasonal work in this industry provides a reliable income.
Table 2. Respondents Perception Towards Income Generation.
Statements | Minimum | Maximum | Mean | Std. Deviation |
The Ayurvedic medicine business has improved the income levels of local people. | 1.0 | 5.0 | 4.176 | 0.797 |
Selling Ayurvedic products has become a significant source of income for many households. | 1.0 | 5.0 | 4.172 | 0.811 |
Local farmers benefit financially from selling raw materials to Ayurvedic businesses. | 1.0 | 5.0 | 4.008 | 0.940 |
The salary from Ayurvedic medicine businesses is firm and responsible. | 1.0 | 5.0 | 4.024 | 0.922 |
Ayurvedic businesses provide superior income chances in comparison to traditional agriculture. | 1.0 | 5.0 | 4.192 | 0.814 |
Weighted Average Mean | 1 | 5 | 4.114 | 0.069 |
Source: Field Survey, 2025
The Ayurvedic medicine business has notably provided to enhance the income levels of local people in Godawari Municipality. Many respondents trust that Ayurvedic businesses give better income chances than traditional agriculture and that marketing Ayurvedic products has become an important source of household income. In addition, the part is recognized as providing firm and reliable incomes. Nevertheless, while local farmers commercially benefit from providing raw materials, this phase has barely less agreement. Overall, the weighted average mean of 4.114 confirms a powerful positive insight of the economic effect of Ayurvedic businesses in the region.
3.1. Market Opportunities
Table 3. Respondents' Perception Towards Market Opportunities.
Statements | Minimum | Maximum | Mean | Std. Deviation |
The requirement for Ayurvedic medicines in the local market has elevated in the latest years. | 1.0 | 5.0 | 4.176 | 0.851 |
Ayurvedic trades in Godawari Municipality have access to a increasing customer base. | 1.0 | 5.0 | 4.068 | 0.952 |
Local Ayurvedic businesses can battle effectively with national and international brands. | 1.0 | 5.0 | 3.948 | 0.974 |
There is adequate availability of raw substances for Ayurvedic production in the local market. | 1.0 | 5.0 | 4.068 | 0.887 |
There is an increasing tendency of consumers to favour Ayurvedic over allopathic medicine | 1.0 | 5.0 | 4.068 | 0.900 |
Weighted Average Mean | 1 | 5 | 4.066 | 0.050 |
Source: Field Survey, 2025
A strong positive trend in the Ayurvedic medicine market within Godawari Municipality. There is a markable growth in demand, a growing customer base, and a transfer in consumer choices toward Ayurvedic medicine. In addition, the adequate accessibility of raw materials aids the sustainability of this business. However, while local Ayurvedic businesses are increasing, their capability to compete effectively with national and international brands remains a concern. Generally, the weighted average mean of 4.066 indicates a positive outlook on the market capacity of Ayurvedic medicine businesses in the area.
3.2. Government Support
Table 4. Respondents' Perception Towards Government Support.
Statements | Minimum | Maximum | Mean | Std. Deviation |
The government supplies financial help to Ayurvedic businesses in Godawari Municipality. | 1.0 | 5.0 | 3.844 | 1.085 |
The government diligently boosts Ayurveda through awareness campaigns and programs. | 1.0 | 5.0 | 3.956 | 1.003 |
Government rules and policies motivate the growth of the Ayurvedic industry. | 1.0 | 5.0 | 4.024 | 0.891 |
The local government encourages the cultivation of medicinal plants for Ayurvedic production. | 1.0 | 5.0 | 4.016 | 0.905 |
Tax inducement and funds are available for Ayurvedic businesses. | 1.0 | 5.0 | 3.848 | 1.057 |
Weighted Average Mean | 1 | 5 | 3.938 | 0.087 |
Source: Field Survey, 2025
The government has policies and actions helping the Ayurvedic sector in Godawari Municipality, there are cuts in financial aid and tax inducement. Regulations and local government actions for medicinal plant cultivation are seen as helpful, but more selected efforts are required to increase direct financial aid and promotional campaigns. In general, the weighted average mean of 3.938 points out a positive insight of government support, with room for enhancement in financial and fiscal incentives.
3.3. Livelihood of People
Table 5. Respondents Perception Towards Livelihood of People.
Statements | Minimum | Maximum | Mean | Std. Deviation |
The Ayurvedic medicine business has notably advanced my wide livelihood. | 1.0 | 5.0 | 4.176 | 0.797 |
My household earnings have elevated due to chances in the Ayurvedic sector. | 1.0 | 5.0 | 4.172 | 0.811 |
The availableness of Ayurvedic businesses has increased my job security. | 1.0 | 5.0 | 4.008 | 0.940 |
Ayurvedic businesses have provided greater accessibility to education for my family. | 1.0 | 5.0 | 4.024 | 0.922 |
The advancement of Ayurvedic businesses has improved local infrastructure and services. | 1.0 | 5.0 | 4.192 | 0.814 |
Weighted Average Mean | 1 | 5 | 4.114 | 0.069 |
Source: Field Survey, 2025
The Ayurvedic medicine business has contributed to enhancing the livelihood of people in Godawari Municipality. The section has provided increased household income, enhanced frameworks, and better access to education. Nevertheless, while job security has enhanced, some respondents still express concern concerning strength. Generally, the weighted average mean of 4.114 points out a strong positive effect of the Ayurvedic sector on the socio-economic welfare of the local population.
Table 6. Descriptive Statistics. Descriptive Statistics. Descriptive Statistics.
Variables | No. of Observations | Minimum | Maximum | Mean | Standard Deviation |
Employment Generation | 278 | 1 | 5 | 4.006 | 0.082 |
Income Generation | 278 | 1 | 5 | 4.114 | 0.069 |
Market Opportunities | 278 | 1 | 5 | 4.066 | 0.05 |
Government Support | 278 | 1 | 5 | 3.938 | 0.087 |
Technological Advancement | 278 | 1 | 5 | 4.002 | 0.073 |
Livelihood of People | 278 | 1 | 5 | 4.066 | 0.05 |
Source: Field Data, 2025
Ayurvedic medicine business in Godawari Municipality has had a positive effect on various phases of the local economy and society, involving employment creation, income extension, market opportunities, and technological elevations. The responses show a high level of unison among participants concerning these positive effects, with some differences noticed in the insights of government support. The low standard divergence across most variables points out strong agreement, showing the overall positive view of the sector's benefaction to the local community.
3.4. Correlation Analysis
Correlation refers to the robustness of the connection between two variables. It serves to gauge the power of a linear relationship among quantitative variables. A robust or high correlation indicates that two or more variables are closely interrelated, whereas a weak or low correlation suggests that the variables are not significantly related. The correlation coefficient is represented on a scale ranging from +1 to 0 to -1. A complete correlation between two variables is presented by either +1 or -1. When one variable grows while the other also grows, the correlation is considered positive; conversely, when one variable increases as the other decreases, the correlation is deemed negative.
The correlation coefficient for Employment generation is 0.043 for livelihood of people, which indicates a very slight positive correlation between uses of employment generation and livelihood of people. However, the p-value associated with this correlation is 1.153 respectively, which exceeds the conventional significance level of 0.05. This advice that the notices association is not notably important. This means that there is insignificant relationship between employment generation and livelihood of people.
Table 7. Correlation Analysis between Dependent and Independent Variable.
Variables | LP | EG | IG | MO | GS | TA |
LP | 1 | | | | | |
EG | 0.043 (1.153) | 1 | | | | |
IG | 0.106* (0.025) | 0.370** (0.001) | 1 | | | |
MO | 0.175* (0.021) | 0.269** (0.002) | 0.516** (0.001) | 1 | | |
GS | 0.004 (1.345) | 0.222** (0.00) | 0.392** (0.000) | 0.488** (0.002) | 1 | |
TA | 0.176* (0.021) | 0.209* 0.021) | 0.286** (0.001) | 0.320** (0.003) | 0.400** (0.002) | 1 |
**. Correlation is significant at the 0.01 level (2-tailed).
Similarly, the correlation coefficient for income generation is 0.106 for livelihood of people, which indicates a very slight positive correlation between uses of income generation and livelihood of people. However, the p-value associated with this correlation is 0.025 respectively, which is lower than the standard significance level of 0.05 for livelihood of people. This suggests that the observed correlation between income generation and livelihood of people is statistically significant.
The coefficient for market opportunities in relation to people's livelihoods is 0.175, indicating a minimal positive correlation between the utilization of market opportunities and the livelihoods of individuals. Furthermore, the p-value related to this correlation is 0.021, which falls below the traditional significance threshold of 0.05. This implies that the correlation viewed is statistically important. Consequently, there exists a meaningful relationship between market opportunities and the livelihoods of people.
4. Discussions
The literature indicates that Ayurvedic medicine in Nepal is not only a health care practice but also an important socio-economic activity deeply rooted in local culture and history. The historical evolution of Ayurveda from the Vedic period to its present institutionalization in Nepal demonstrates that the system has survived through community trust, indigenous knowledge, and the availability of rich medicinal plant resources. This background helps explain why the Ayurvedic medicine business has a strong connection with the livelihood strategies of rural households. One major theme emerging from previous studies is the employment potential of the Ayurvedic sector. Cultivation, collection, processing, and trade of medicinal plants provide income opportunities for farmers, collectors, and small entrepreneurs, particularly in remote hill and mountain regions where alternative employment is limited. Authors such as
| [23] | Singh, A., (2005). Employment generation through Ayurvedic enterprises in rural areas. Rural Development Quarterly, 15(2), 112-124. |
[23]
and Subedi
| [24] | Subedi, B. (2006). Commercialization of medicinal plants in Nepal: Conservation and livelihood implications. Journal of Mountain Science, 3(3), 197-204. |
[24]
emphasize that participation in this value chain reduces seasonal unemployment and supports household cash income. The present review therefore suggests that the Ayurvedic business functions as a livelihood diversification strategy rather than only a health service. Another important issue is poverty reduction and economic empowerment. Commercialization of medicinal herbs and the growth of Ayurvedic clinics and industries have created local markets and encouraged community-based enterprises. However, the benefits are not equally distributed. Middlemen often capture a large share of profit, while primary collectors receive low prices for raw materials. This gap, highlighted in several studies, shows the need for better market regulation, cooperative approaches, and government support to ensure fair returns to local people. Cultural and social dimensions also play a significant role.
Ayurveda is closely linked with Nepalese traditions, religious beliefs, and indigenous healing knowledge. This cultural acceptance increases community participation in the Ayurvedic business and strengthens social identity. At the same time, modernization and global demand for natural products have transformed Ayurveda from a purely traditional practice into a commercial industry. Balancing commercial growth with preservation of traditional knowledge remains a challenge. The literature further points to sustainability concerns. Over-harvesting of medicinal plants, lack of scientific cultivation, and weak quality control may threaten both the environment and the long-term viability of the business. Scholars argue that integrating modern management with traditional practices is essential to protect biodiversity while enhancing economic benefits. Government policies promoting cultivation, training, and certification are therefore critical. Overall, the reviewed studies suggest that the Ayurvedic medicine business has a positive impact on the livelihood of local people in Nepal through income generation, employment creation, and cultural preservation. Nevertheless, structural problems such as market inequality, limited technical knowledge, and resource management must be addressed. Future research should focus on empirical measurement of household income, gender participation, and policy effectiveness to better understand the real socio-economic contribution of this sector.
5. Conclusion
Ayurvedic business sector are predominantly women who demonstrate their vital role in running business operations. The Ayurvedic business industry provides opportunities for entrepreneurship that enhances female economic independence. Senior members of the industry commit to this field more intensely because they understand traditional practices well and have many years of experience working in the sector. The Ayurvedic business proves reliable enough to support family financial needs. The Ayurvedic practitioners earn minimum revenue, so they need better financial assistance together with business policy development to increase their earnings. Various time spans describe the durations of people managing Ayurvedic businesses since numerous operators possess extensive business experience. Scientific research proves that Ayurvedic business produces long-term career opportunities combined with sustainable entrepreneurial possibilities. The income streams of the Ayurvedic industry come from agricultural cultivation together with manufacturing and distribution followed by medicine distribution activities. The preferred sales channels for the products identify local markets right after online platforms and wholesale distributors. The limited participation in the Export market indicates promising expansion potential for this business sector. Business sustainability improves through market linkages that connect local networks with international counterparts which result in better profitability. The positive expansion outlook for most companies rests upon strategic actions which must be performed to sustain growth despite several respondents expecting their businesses to stagnate or decline. Ayurvedic business growth will flourish with three key diplomatic plans which compromise greater investment rates merged with technological progress and market enlargement.
The job formation merged with enlarged income guides to better household living situations but fails to result in major developmental consequences. Education creates similar positive outcomes for livelihood growth as market opportunity availability and governmental backing and technological development. Multiple approaches should be combined to maximize both economic and social contributions of this industry. The Sustainable Livelihood Framework (SLF) as its most appropriate framework since it deepens understanding about how Ayurvedic enterprises create meaningful effects on local livelihoods. Institutional capital theory from Sustainable Livelihoods Framework matches the inconsistent nature of Ayurvedic businesses and government backing but policy structures should still improve these positive effects. The recent technology evolution represents opportunities to increase market discovery and product development abilities that enhance business operative capabilities.
Abbreviations
GDP | Gross Domestic Product |
SLF | Sustainable Livelihood Framework |
Acknowledgments
We would like to express my sincerest gratitude to article reviewer, expert and publisher group and for his good academic advice and regular feedback. We would like to express our heartfelt gratitude to all the data enumerators and selected household respondents and community members for their support throughout the research process.
Author Contributions
Dipendra Bikram Sijapati: Conceptualization, Methodology, Data curation, Validation, Writing – original draft
Manamaya Mishra: Investigation, Writing – original draft
Bishnu Kumar Khadka: Software, Visualization, Writing – original draft
Conflicts of Interest
The authors declare no conflicts of interest.
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ACS Style
Sijapati, D. B.; Mishra, M.; Khadka, B. K. The Socio-economic Impact of Ayurvedic Medicine Business on Livelihood of Local People in Nepal. Sci. J. Bus. Manag. 2026, 14(1), 1-10. doi: 10.11648/j.sjbm.20261401.11
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Sijapati DB, Mishra M, Khadka BK. The Socio-economic Impact of Ayurvedic Medicine Business on Livelihood of Local People in Nepal. Sci J Bus Manag. 2026;14(1):1-10. doi: 10.11648/j.sjbm.20261401.11
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@article{10.11648/j.sjbm.20261401.11,
author = {Dipendra Bikram Sijapati and Manamaya Mishra and Bishnu Kumar Khadka},
title = {The Socio-economic Impact of Ayurvedic Medicine Business on Livelihood of Local People in Nepal},
journal = {Science Journal of Business and Management},
volume = {14},
number = {1},
pages = {1-10},
doi = {10.11648/j.sjbm.20261401.11},
url = {https://doi.org/10.11648/j.sjbm.20261401.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20261401.11},
abstract = {This paper revels that the socio-economic results of the Ayurvedic healthcare industry on the living of local residence in Nepal. It also examines current trends and difficulties in medicinal plant cultivation, the economic circumstances of those participating in the region, and plans for sustainable harvesting and preserving quality. It is based on descriptive and analytical research design by using first-hand information gathered through closed-ended questionnaires. After the data collection, final analyzed the data by computer software and implemented descriptive statistics method. The Ayurvedic medicine sector in Nepal, provides various opportunities for local economic development by increasing cultivation, processing, and commercialization of medicinal plants. Nevertheless, there are various difficulties obstructing the understanding of these possible advantages. Offering consistent manufacturing grades in Ayurvedic medicine will boost consumer confidence and expand market reach. The Ayurveda industry supplies notable employment opportunities and provides as a footpath for entrepreneurship, especially for women encouraging their empowerment and financial self-determination. The workforce mainly consists of older, married individuals, who view it as a safe source of income. The impact on livelihoods is moderately positive, driven by job creation and income generation. These factors show a weak but positive link to livelihood improvement no single one is essential but combining them creates much stronger results. Innovations like digital marketing and improved production methods are expected to boost productivity and market reach. Adopting modern technology will drive product innovation and operational efficiency. Despite promising market opportunities and government support, further advances in finance, policies, and technology are still needed.},
year = {2026}
}
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TY - JOUR
T1 - The Socio-economic Impact of Ayurvedic Medicine Business on Livelihood of Local People in Nepal
AU - Dipendra Bikram Sijapati
AU - Manamaya Mishra
AU - Bishnu Kumar Khadka
Y1 - 2026/01/30
PY - 2026
N1 - https://doi.org/10.11648/j.sjbm.20261401.11
DO - 10.11648/j.sjbm.20261401.11
T2 - Science Journal of Business and Management
JF - Science Journal of Business and Management
JO - Science Journal of Business and Management
SP - 1
EP - 10
PB - Science Publishing Group
SN - 2331-0634
UR - https://doi.org/10.11648/j.sjbm.20261401.11
AB - This paper revels that the socio-economic results of the Ayurvedic healthcare industry on the living of local residence in Nepal. It also examines current trends and difficulties in medicinal plant cultivation, the economic circumstances of those participating in the region, and plans for sustainable harvesting and preserving quality. It is based on descriptive and analytical research design by using first-hand information gathered through closed-ended questionnaires. After the data collection, final analyzed the data by computer software and implemented descriptive statistics method. The Ayurvedic medicine sector in Nepal, provides various opportunities for local economic development by increasing cultivation, processing, and commercialization of medicinal plants. Nevertheless, there are various difficulties obstructing the understanding of these possible advantages. Offering consistent manufacturing grades in Ayurvedic medicine will boost consumer confidence and expand market reach. The Ayurveda industry supplies notable employment opportunities and provides as a footpath for entrepreneurship, especially for women encouraging their empowerment and financial self-determination. The workforce mainly consists of older, married individuals, who view it as a safe source of income. The impact on livelihoods is moderately positive, driven by job creation and income generation. These factors show a weak but positive link to livelihood improvement no single one is essential but combining them creates much stronger results. Innovations like digital marketing and improved production methods are expected to boost productivity and market reach. Adopting modern technology will drive product innovation and operational efficiency. Despite promising market opportunities and government support, further advances in finance, policies, and technology are still needed.
VL - 14
IS - 1
ER -
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