India’s Tea Industry Set to Shatter Records with $1 Billion Export Target – Find Out How!

India is making headlines in 2025 with its ambitious goal to export $1 billion worth of tea—a target that reflects not just the country’s rich tea heritage, but also its growing influence in the global market. For generations, tea has been more than just a drink in India; it’s a symbol of hospitality, culture, and tradition. Now, as the world’s second-largest tea producer and exporter, India is leveraging its legacy to capture new markets and set new records. With exports already nearing the billion-dollar mark, the nation’s tea industry is preparing to break barriers, create jobs, and showcase its finest blends to the world.

India’s Tea Export Journey: From Tradition to Global Ambition

A Century-Old Industry with Modern Aspirations

India’s tea industry is deeply rooted in history, with regions like Assam, Darjeeling, and Nilgiri producing some of the world’s most famous teas. In 2024, the industry was valued at INR 1 trillion and is projected to reach INR 1.47 trillion by 2029, growing at nearly 7% annually. This growth is not only driven by domestic consumption but also by a strong export push.

Record-Breaking Export Growth

In 2024, India Tea Industry exported 255 million kilograms of tea, earning $924 million—a 10% increase from the previous year and the highest export value in a decade. This surge has propelled India past Sri Lanka, making it the world’s second-largest tea exporter, just behind Kenya. The momentum continued into 2025, with export values already reaching $954 million by mid-year, putting the $1 billion target within reach.

Key Factors Fueling the $1 Billion Export Target

1. Expanding into New Markets (Indian Tea Industry)

Traditionally, Indian tea has been exported to countries like Russia, Iran, the UAE, the USA, and the UK. Now, the Tea Board of India is actively exploring non-traditional markets such as Canada and Australia, where demand for Indian tea is rising. This diversification is crucial for sustaining growth and reducing dependency on a few major buyers.

2. Quality and Compliance

Indian tea Industry producers are focusing on meeting international quality standards, especially regarding pesticide residue levels. By complying with strict European Union regulations, Indian tea is being positioned as a premium, safe, and high-quality product on the global stage. This has helped boost the reputation and demand for Indian tea in high-value markets.

3. Government Support and Policy Initiatives

The Indian government has launched several initiatives to support the tea sector:

• Tea Development & Promotion Scheme (TDPS): Modernizes tea estates and enhances global competitiveness.
• Union Budget 2025-26: While not offering direct financial support, the budget includes measures for sustainable agriculture, improved infrastructure, and ease of doing business—all of which benefit the tea industry.
• Self-Help Groups and Farmer Producer Organizations: Over 300 SHGs and 400 FPOs have been formed to empower small tea growers and improve productivity.

4. Innovation and Branding

India is investing in tea tasting infrastructure, professional training, and branding to enhance the global appeal of its teas. The Tea Board plans to introduce globally certified courses for tea tasters and establish centers for tea tasting certification, further building export readiness. Collaborations with the Spice Board are also underway to develop innovative tea flavors tailored to international tastes.

India Tea Industry Export Data (2020–2024)

Highlights

• Types of Tea Exported: The vast majority of Indian tea Industry exports are black tea (about 96%), with smaller shares for green, herbal, masala, and lemon teas.
• Revenue: Revenue has steadily increased, reaching a 10-year high in 2024 at ₹7,112 crore (approx. $924 million).
• Major Destination Countries: Iraq, UAE, Russia, Iran, USA, and the UK consistently rank as top importers. In 2024, Iraq accounted for about 20% of total exports, with expectations of 40–50 million kg shipped to that country alone. (Source)
• Total Quantity Exported: Exports grew from about 200 million kg in 2020 to a record 255 million kg in 2024, with a notable jump in 2022 and 2024.

Additional Country-wise Export Volumes (Recent Years)

• The CIS nations (Russia, Ukraine, Kazakhstan) together accounted for about 21% of exports in 2021–22.
• Orthodox tea (a category of black tea) has driven much of the recent export growth, especially with government incentives.

Key Trends in Tea Industry

• Export Growth: India overtook Sri Lanka in 2024 to become the world’s second-largest tea exporter, trailing only Kenya.
• Market Diversification: India exports tea to over 25 countries, with ongoing efforts to expand into new markets like Canada and Australia.
• Price Trends: The average export price of Indian tea increased by 10% in 2024, reflecting higher demand and improved quality.

Major Export Destinations and Market Dynamics

Top Buyers in 2025

The UAE has emerged as the largest buyer of Indian tea in the first half of fiscal year 2025, followed by the US and Iraq. Russia and Iran remain significant markets, while new interest is being seen from countries like Canada and Australia.

Export Volume and Value Trends

From April to September 2024, India exported 122,000 tons of tea, an 8.6% increase from the same period the previous year. The export value rose by 13.18%, reaching 34.04 billion rupees. The unit price of Indian tea also increased, reflecting higher demand and improved quality.

Black Tea Dominates Exports

Black tea accounts for 96% of India’s tea exports, favored for its affordability and deep cultural roots both domestically and internationally. However, there is growing interest in specialty and value-added teas, which command higher prices in global markets.

Outlook for 2025 and Beyond: Tea Industry

India’s tea industry is poised for continued growth, with the $1 billion export target serving as both a milestone and a motivator. The combination of government support, industry innovation, and expanding global demand positions India to not only achieve this goal but also to set new benchmarks in the years ahead.

By 2030, the industry aims to export 300 million kilograms of tea annually, building on the recent upward trend. With strong foundations, a skilled workforce, and a focus on quality and sustainability, India’s tea sector is ready to make its mark on the world stage.

“Indian exports are doing very well. It’s unprecedented. We exported USD 924 million worth of tea. We’re now reaching out to newer markets while maintaining our traditional ones.”
— Saurav Pahari, Deputy Chairman, Tea Board of India.

Conclusion

India’s quest to achieve $1 billion in tea exports in 2025 is more than just a financial target—it’s a testament to the resilience, innovation, and global vision of the country’s tea industry. As India continues to expand its reach, improve quality, and embrace sustainability, its teas are set to become even more popular around the world. The journey from the lush tea gardens of Assam and Darjeeling to teacups across continents is a story of tradition meeting modern ambition—a story that’s just getting started.