The Indian tea industry, which has been facing numerous challenges over the years, finally has a reason to celebrate. Recent data released by the Tea Board of India indicates that India has emerged as the second-largest tea exporter in the world in 2024, surpassing Sri Lanka and trailing behind Kenya, which retained the top position.
India’s Rise in Global Tea Exports
India Overtakes Sri Lanka
India exported 254 million kilograms (Mkg) of tea in 2024, marking a significant jump from its 231 Mkg exports in 2023. In comparison, Sri Lanka’s tea exports remained at a similar level as in 2023, allowing India to secure the second spot.
- Kenya, which remains the world’s largest tea exporter, shipped over 500 Mkg of tea in 2024.
- India’s 2024 export figures (254 Mkg) were the second highest in its history, only behind 2018, when the country exported around 256 Mkg.
- The Indian tea industry aims to achieve an export target of 300 Mkg by 2030, given the recent upward trend.
Economic Impact of Increased Tea Exports
The tea exports in 2024 generated a revenue of ₹7,112 crore, reflecting a significant boost to the industry. Over the past few years, India’s tea export figures have remained within 200-225 Mkg, except for 2018 and 2024.
Key Factors Behind India’s Tea Export Growth
Government Policies and Industry Support
One of the driving factors behind this growth is the favorable export policies introduced by the Union and state governments. Various schemes aimed at promoting orthodox tea production have played a crucial role in increasing exports.
According to Prabir Kumar Bhattacharjee, Secretary General of the Tea Association of India, the tea industry is optimistic about expanding its global market share with continued government support.
Dominance of Orthodox Tea Segment
The bulk of India’s export growth has come from the orthodox tea segment. This category of tea has gained popularity in international markets, leading to increased demand and export volumes. Orthodox tea production has been actively promoted through government incentives, which have helped India compete effectively in the global market.
India’s Tea Production and Future Prospects
- India produces around 1,400 Mkg of tea annually, with a significant portion consumed domestically.
- The recent increase in exports has provided a much-needed boost to the industry, raising hopes of achieving record-breaking export figures in the coming years.
- The Tea Board of India and other industry stakeholders are now focusing on expanding into new markets and enhancing the quality of exports to sustain the growth momentum.
Comparison of India’s Tea Exports (2023 vs. 2024)
Year | Tea Export (in Mkg) | Rank in Global Exports | Major Competitor | Revenue (₹ Crore) |
---|---|---|---|---|
2023 | 231 | Third | Sri Lanka | Not Specified |
2024 | 254 | Second | Kenya | 7,112 |