Wellness and beauty industry is going to expand in India and the increased demand will come not only from the domestic market but international market as well. Western Europe, Russia, USA, Kazakhstan, UAE, Nepal, Ukraine, Japan, Philippines, Kenya,etc are big markets for Indian herbal products.With rising income levels across the globe there is increased focus on a healthy living.As per a report published in March 2015 edition of Entrepreneurindia magazine, the share of the wellness industry in India is still less than two per cent in comparison to its performance in the world market.The same report also predicts the industry to grow by 20- 30 per cent year-on-year. Therefore there is ample opportunity for businesses in this line.For India,the AYUSH segment,which is a significant component of this industry, is an area which can be built upon. The new government has realized this and within just a year of its functioning it has taken many steps to promote the industry. The Beauty and Wellness Sector Skill Council was started by the government in June 2014.The Department of Indian Systems of Medicine and Homoeopathy under the Ministry of Health was made a full-fledged ministry of AYUSH in the same year. The Make In India campaign has given a special focus to this sector and the draft National Health Policy 2015 also proposes for greater integration of AYUSH with modern system of medicine.The present paper focuses on beauty and wellness industry in India, its drivers and challenges with special focus on the AYUSH segment.