Herbal industry is one of the globally and nationally growing industries, but this industry has not been explored adequately in the research domain. This has raised certain problems in the industry effective functioning. This study is focussed on understanding this industry Strength, Weakness, Opportunity and Threats (SWOT). The interactions with experts of this industry are done to develop this sector understanding. This study has identified various factors using causal loop diagram which are playing role in the functioning and the current state of the industry. This study concludes by proposing the Indian Herbal Industry SWOT.