What Is The Contribution of The Tea Industry in The Indian Economy?




When it comes to beverages there is nothing that  beats the essence of ‘Great Indian Tea’. Known by various colloquialisms like “Chai ki Chuski” or ‘Garam Pyali this has long been associated with a drink of pride’.

Though --times came and gone  but  “Chai remained intact of all ages.There are other substitutes beverages touched by Lips, i.e Coffee often called the drink of high-end society. But it is only the tea that made a drug effect on every section of society. Not only in India, but a national beverage of the United Kingdom too.

“No irony to say this is the most non-alcoholic beverage which is hugely popular in India”.

The Contribution of Tea Industry on Indian Economy :-


Well, the above para was about the taste,(talab) on tea lovers. But this’ll be about how Indian Economy has gained from production, manufacturing and retailing of tea. With more than 137 crore population, the fact is that Tea is being cooked at 85 % of households.

 No surprises if this makes a big contribution to the great Indian Economy. Darjeeling(WB) is the most popular hill station ;popular not only for scenic beauty and irresistible aroma of tea. Assam is another state which produces tea on a large scale.. More than 17 percent of workers are engaged in the tea industry.

  • Today Tea Industry is having more than 1632 registered tea manufacturers, registered tea manufacturers,220 registered tea exporters and a staggering 5548 tea buyers and nine tea auction centres

  • Not only have we been successful in meeting such a huge demand in the country, but we are also a tea exporter counting for more than 12-13 %of tea exports.

  •  The tea Industry in India is one of the largest in the world, having more than 1300 gardens , and with a massive workforce of over two million people.

  • Tea industry is one of the largest women employer providers amongst organizer sectors in India. Women majorly constitute more than 51 % population.

  • Total Tea exports from the country stood at a staggering  US$ 830.90 million in 2018-19 and reached US$ 535.13 million in 2019-20 (till November 2019).

  • Between April-November 2019, major importers of Indian tea were Iran (US$ 131.77 million), CIS (US$ 90.29), USA (US$ 37.35 million), UK (US$ 30.97 million), UAE (US$ 25.30 million) and China (US$ 21.70 million).

  • India stands fourth in terms of tea exports after Kenya with neighbouring countries & competitors like China & Sri Lanka respectively.

  • As of 2018, India was the second- largest producer in the world with production of 1,338 million kg and during January-December 2019*, estimated production stood at 1389.70 million kg.

  • If we go far behind 2010-2018, the tea production and consumption rate have dramatically increased at a CAGR of  4.17 % and 2.94 % in India.

So going by all such facts' tea production is a major source of employment in the North-East Region. Where there are no industries. Going by such factors we realize that  it has indirectly  contributed a big role in the economy. 

Hopefully, in times to come, Centre will input some key measures that’ll  further boost this Industry. No mentions, the hon’ble PM understands how this industry holds importance for our socio-economic culture.









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