Neem (Azadirachta indica) is widely used in Ayurveda because of its effectiveness in dealing with nearly all types of pitta and kapha imbalances. In the world of Ayurveda neem is a popular medicinal herb thatâs been part of traditional remedies that date back almost 5000 years ago. Neem powder is very good for skin suffering from acne rashes allergies heat rashes or nappy rashes. It is also effective against insects (especially head lice) and dandruff.