New Delhi, Aug. 18 -- The government is drawing up a new incentive framework for India's nearly $30 billion nutraceutical industry, looking to turn its rapid growth at home into a bigger manufacturing and export opportunity. The food processing ministry has started industry consultations and sought inputs from the health ministry and the Food Safety and Standards Authority of India (FSSAI), two officials familiar with the matter said.

Nutraceuticals, derived from food sources that bring health and medical benefits beyond basic nutrition, are broadly grouped into dietary supplements, functional foods, vitamins and minerals-enriched products and functional beverages. Unlike pharmaceuticals that focus on treating disease, nutraceuticals are...