A Study of Tea Industry of India

Tea is indigenous to India and is a major foreign exchange earner and contributor to the GNP (Gross National Product) of the country. In all aspects of tea production, consumption and export, India has emerged as the world leader. The range of teas offered by India, from the original Orthodox to CTC (Crush, Tear, Curl), Green Tea, the aroma and flavour of Darjeeling Tea to, the strong Assam and Nilgiri Tea, remains unparalleled in the world.India is the second largest producer of tea, the largest consumer, and the fourth largest exporter in the world, after Sri Lanka, Kenya and China. Almost 85 % of the total tea produced in India is consumed locally. Per capita domestic tea consumption in India has grown significantly from 200 grams in the early 1950’s 700 grams today. Such a massive domestic consumption has affected the performance of Tea Sector on the Export front. Export of Tea as Quantity in million kgs from India increased from 201 million kgs in 1950 to 222 million kgs in 2016, accounting for a mere 10.45 % increase over the period. The government therefore needs to take measures urgently to improve Export Performance of the sector, an important foreign exchange earner.