24th September 2025 (14 Topics)

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India’s Tea Industry Potential

Context:

India’s growing prominence in global tea production, consumption, and exports was highlighted at the India International Tea Convention, 2025.

India’s Position in the Global Tea Market

Global Tea Production and India’s Role
- Global Scenario (2024):
  - Total production:074 billion kg.
  - Total consumption:97 billion kg.
India’s Share:
- Production:303 billion kg (~18.4% of global output).
- Consumption: 1.22 billion kg (~17.5% of global consumption).
- Global ranking:
  - 2nd largest producer and consumer.
  - 3rd largest exporter.

Export Dynamics

Global Export Comparison:
- Kenya: Largest exporter; exports almost all production.
- China: 2nd largest exporter; consumes most domestically.
- Sri Lanka: Exported 245 million kg worth $1.4 billion.
- India: Exported 255 million kg worth ~$800 million.
Implications for India:
- Focus on quality improvement to increase revenue.
- Diversify markets to South America and Africa for better global reach.

Domestic Consumption Trends

Current Per Capita Consumption:
- India: 840 gm/year.
- Turkey: 3 kg/year (highest globally).
Potential Growth:
- Increasing domestic per capita consumption to 1 kg/year could absorb India’s entire production, indicating significant domestic market potential.
- Rising willingness to pay for quality tea presents an opportunity for premiumization.

Tea Board of India

Establishment and Legal Status:

Statutory body under the Ministry of Commerce & Industry, Government of India.
Established: 1953 (started functioning in 1954).
Objective: Development and promotion of the tea industry; positioning India as a global leader in tea production and trade.

Vision and Mission:

Enhance production, quality, and export of Indian tea.
Promote domestic consumption and global branding of Indian teas.
Support sustainable and equitable growth of the tea sector.

Composition of the Board:

Total members:31, including Chairman.
Members drawn from:
- Parliamentary representatives
- Tea producers, traders, brokers, and consumers
- State government representatives from major tea-producing states
- Trade unions
Tenure: Board is reconstituted every three years.
Offices:
Headquarters: Kolkata.
Domestic offices: 17 across India (in major tea-producing regions).
International presence: Two overseas offices – Dubai and Moscow.

Functions and Role:

Implement schemes and programmes for tea cultivation, quality improvement, and marketing.
Regulate export of tea, set standards, and promote GI-tagged teas (e.g., Darjeeling, Assam Orthodox).
Support research and development via collaboration with tea research institutes.
Assist in market intelligence, trade fairs, and promotional activities abroad.

Key Schemes / Initiatives:

Market Development Assistance (MDA): Promotes export and branding of Indian tea globally.
Tea Quality Upgradation Programmes: Focused on orthodox and specialty teas.
Domestic Promotion Schemes: Encouraging consumption, branding, and awareness campaigns.

China Model Consensus

International Relations India’s Foreign Policy

Trump, Law, and Power

Polity & Governance

GST 2.0 Simplification Drive

Economy

Housing for All: PMAY-G

Polity & Governance Scheme

India–China Border Dispute

International Relations

Satellite Communication in India

Science & Technology Space

H-1B Visa Fee Hike

International Relations

Recognition of Palestine

International Relations

U.S. Tariffs Hit India’s Diamond Sector

Economy

Oju 2,200 MW Hydel Project

Economy Infrastructure

India’s Updated NDCs

Ecology and Environment

India’s Fusion Energy Roadmap

Science & Technology

Ramdhari Singh Dinkar (1908–1974)

Miscellaneous

GS Analyst: Daily Current Affairs

India’s Tea Industry Potential