Process for producing water soluble Azadirachtin containing powder formulation from neem seed kernel with the help of native and external inclusion complex. The process comprises expelling a large proportion of oil from neem seed kernels (NSK) by cold pressing, extracting the so called de-oiled neem seed cake with water to form an aqueous solution in which the azadirachtin is complexed with water soluble polysaccharides and proteins. The enrichment of azadiractin in aqueous solution is achieved by addition of azadiractin containing inclusion complex and spray drying. This helps in retaining all naturally occurring limonoids of neem seed kernel along with native encapsulating agents such as polysaccharide-protein matrix and also achieve water soluble powder with higher amounts of azadirachtin (>；6000-60,000 ppm) in it.
