Tea Export from India: Why Demand for Indian Tea is Rising Worldwide
calendar Thu, 18 Sep 2025

Tea Export from India: Why Demand for Indian Tea is Rising Worldwide

Tea is not just a beverage—it’s a cultural symbol, a lifestyle choice, and one of India’s proudest exports. Globally, tea is the second most consumed beverage after water, and India plays a central role in this market. From the brisk flavors of Assam Tea to the delicate aroma of Darjeeling Tea, Indian teas have made their way to millions of cups worldwide.

As of FY 2024-25, India exported over 220 million kilograms of tea, contributing significantly to the nation’s foreign exchange earnings. Despite modest growth compared to earlier years, the demand for Indian tea worldwide is steadily rising. This growth is driven by increasing health consciousness, demand for organic products, and India’s ability to deliver a diverse range of teas at competitive prices.

In this article, we’ll dive into:

  • India’s tea export journey and performance in FY 2024-25

  • Why global demand for Indian tea is increasing

  • Top tea-importing countries and their preferences

  • Key challenges and government support measures

  • Step-by-step guide to start tea export from India

  • The future of Indian tea in global markets

A Brief History of Indian Tea Exports

India’s love affair with tea began during the British colonial period in the early 19th century. While tea had been grown in Assam and other regions, it was under the British East India Company that large-scale plantations began. By the mid-1800s, India became a major exporter, competing directly with China.

  • Assam Tea: Known for its strong, malty flavor, Assam tea dominates India’s production.

  • Darjeeling Tea: Dubbed the “Champagne of Teas,” it holds a Geographical Indication (GI) tag and is highly sought after in Europe and Japan.

  • Nilgiri Tea: Famous for its fragrant aroma, Nilgiri tea is widely exported to the Middle East.

  • Kangra & Sikkim Teas: Smaller but premium segments gaining recognition.

Today, India is among the top three tea producers and exporters in the world, alongside China and Kenya.

Indian Tea Export Performance in FY 2024-25

According to the Tea Board of India, the country’s tea exports in FY 2024-25 touched 220+ million kg, valued at approximately ₹6,000 crore (USD 720 million).

Key Highlights:

  • Growth Rate: Moderate rise compared to FY 2023-24.

  • Major Buyers: CIS countries, UAE, USA, UK, Germany, and Egypt.

  • Varieties Exported: Black tea (CTC and Orthodox), Green tea, Organic tea, and Herbal infusions.

  • Emerging Markets: Southeast Asia and African nations.

This performance reflects India’s strong positioning despite global trade uncertainties.

Why Global Demand for Indian Tea is Rising

There are several strategic reasons behind the rising popularity of Indian tea worldwide:

1. Diversity of Varieties

India offers a wide range of teas—Assam, Darjeeling, Nilgiri, Kangra, Sikkim, and herbal infusions—each with a unique taste profile.

2. Global Health & Wellness Trends

Green tea, herbal teas, and organic infusions are in demand due to health benefits such as weight management, improved digestion, and stress relief.

3. Competitive Pricing

India’s large-scale production enables competitive export pricing compared to specialty teas from China or Sri Lanka.

4. Organic & Sustainable Practices

More tea plantations are shifting toward organic certifications and eco-friendly cultivation, catering to eco-conscious buyers in the EU and US.

5. GI Certifications & Premium Branding

Darjeeling, Assam Orthodox, and Nilgiri teas are GI-protected, enhancing their global branding and premium pricing.

Major Tea Export Destinations

India’s tea reaches over 140 countries, but some markets dominate demand:

  • Russia & CIS Countries: The largest importers, with strong historical trade ties.

  • United Arab Emirates (UAE): Functions as a re-export hub, distributing Indian tea across the Middle East.

  • United States: Increasing demand for herbal and specialty teas.

  • United Kingdom: A traditional buyer of Darjeeling and Assam tea.

  • Germany & France: Premium organic tea markets.

  • Egypt & Iran: Strong demand for bulk black tea.

  • China & Japan: Growing interest in Indian green teas.

The Role of Tea in India’s Export Economy

Tea contributes significantly to India’s agriculture exports:

  • Provides livelihood to over 1.2 million workers directly, with 70% being women.

  • Supports rural economies in Assam, West Bengal, Tamil Nadu, and Kerala.

  • Boosts India’s global trade profile, complementing other agri-exports like rice and spices.

Government Support for Tea Exporters

To promote Indian tea globally, the Government of India provides:

  1. Market Access Initiatives (MAI) – Financial support for exporters to participate in trade fairs.

  2. APEDA & Tea Board Schemes – Incentives for branding, packaging, and quality certification.

  3. Organic Certification Subsidies – Support for tea gardens shifting to organic farming.

  4. Promotion Campaigns – “Indian Tea: The Taste of India” branding in international markets.

Challenges Faced by Indian Tea Exporters

Despite its strengths, the industry faces hurdles:

  • Fluctuating global prices impacting profitability.

  • Rising production costs in labor-intensive plantations.

  • Competition from Sri Lanka, Kenya, and Vietnam.

  • Quality compliance challenges for EU and US markets.

  • Logistics costs due to global shipping rate fluctuations.

Exporters who adopt innovation, digital tools, and value addition can overcome these barriers effectively.

How to Start Tea Export from India

Exporting tea requires careful compliance and strategy. Here’s a step-by-step guide:

  1. Register Your Business – Obtain IEC (Import Export Code) from DGFT.

  2. Tea Board Registration – Mandatory for all tea exporters.

  3. Quality Testing & Certification – Ensure compliance with international standards.

  4. Select Target Market – Research demand in CIS, EU, Middle East, or US.

  5. Partner with Freight Forwarders – For smooth logistics and customs clearance.

  6. Digital Presence – List products on B2B trade platforms.

  7. Connect with Buyers – Attend trade fairs or use online platforms like Navi Exports.

You can explore and connect with authentic buyers through our Tea & Herbal Infusions Export Page.

Case Studies: Indian Tea Export Success

Case Study 1: Darjeeling Tea in Europe

Darjeeling tea has become a premium product in Germany and France due to its GI certification. Exporters have successfully positioned it as a luxury beverage.

Case Study 2: Organic Assam Tea in the US

Small-scale Assam tea exporters have entered the US organic market, leveraging wellness trends to achieve higher profit margins.

Case Study 3: Nilgiri Tea in the Middle East

Nilgiri tea exporters partnered with UAE distributors, making it one of the most consumed teas in Gulf countries.

The Future of Indian Tea Exports

Looking ahead, Indian tea exports are expected to:

  • Grow at a CAGR of 4-5% over the next 5 years.

  • See rising demand for organic and specialty teas.

  • Expand in Asian and African markets.

  • Benefit from digital trade platforms and e-commerce.

India’s tea industry is poised for sustainable growth, backed by innovation, branding, and government support.

Conclusion

Tea export from India is more than just trade—it’s the story of India’s agricultural strength and cultural heritage. With diverse varieties, global recognition, and government initiatives, Indian tea continues to capture the world’s attention.

For exporters, the opportunities are immense. By focusing on quality, branding, and global market trends, Indian tea can remain a global leader in exports.

Ready to explore the world of tea exports? Start today with our Tea & Herbal Infusions Export Section.

Expanded FAQs on Tea Export from India

Q1. How much tea does India export annually?
India exports between 200–230 million kg of tea annually, depending on market fluctuations.

Q2. What is the most exported tea from India?
Assam and Darjeeling black teas dominate, followed by green tea and Nilgiri tea.

Q3. Which country is the biggest buyer of Indian tea?
Russia and CIS countries are the largest buyers, followed by UAE and the UK.

Q4. What is the profit margin in tea export?
Margins vary from 10% to 25%, depending on type (bulk vs specialty) and target market.

Q5. Is organic tea more profitable to export?
Yes. Organic and herbal teas fetch higher prices in Europe, the US, and Japan.

Q6. What certifications are required for exporting tea?

  • Import Export Code (IEC)

  • Tea Board Registration

  • Quality certifications (ISO, HACCP, Organic Certification if applicable)

Q7. How can small businesses enter the tea export market?
They can start with bulk exports to nearby countries (UAE, Bangladesh) or use digital B2B platforms.

Q8. What role does Darjeeling Tea play in exports?
Darjeeling Tea accounts for only 1% of India’s production, but it is the most premium and high-value tea exported.

Q9. Can herbal teas and infusions be exported?
Yes, and they are among the fastest-growing export categories, especially to Europe and the US.

Q10. What’s the outlook for Indian tea exports in the next 5 years?
With rising demand for health-based teas, exports are projected to grow steadily, crossing 250 million kg annually.