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When we talk of the plantation industry in India, tea is the first name that comes to our mind. The tea industry has been a part of the social life and economic arrangement of the country for a very long time. Today, more than 3.5 million workers, mostly rural and tribal, are engaged in the tea industry directly and indirectly. It is a big foreign exchange earner and contributes significantly to the country’s growth dynamic. There is a historical aspect of the tea industry that embodies its past and British colonial legacies in India.

The tea industry in India is nearly two centuries old. It occupies an important place and plays a very useful part in the national economy. Owing to certain specific soil and climatic requirements its cultivation is confined to specific areas of the country. Tea plantations in India are mainly located in rural hills and backward areas of north-eastern and southern states. Major tea growing areas of the country are concentrated in Assam, West Bengal, Tamil Nadu and Kerala. The other areas where tea is grown to a small extent are Karnataka, Tripura, Himachal Pradesh, Uttaranchal, Arunachal Pradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram, Bihar and Orissa.

Growth of Indian tea industry

The journey of the Indian tea industry began in the early 19th century under the British East India Company, which sought to break China's monopoly by expanding tea plantations in India, especially in the Assam region. The East India Company took over control of the region through the Treaty of Yandabo in 1826 and set up the first British tea garden in Upper Assam in 1837. The commercial production of tea on a bigger scale, however, began from 1840 after the incorporation of Assam Tea Company.

Beginning in the 1850s, the tea industry rapidly expanded, consuming vast tracts of land for tea plantations. By the turn of the century, Assam became the leading tea-producing region in the world. The success in Assam led to expanded tea production in West Bengal and South India through British colonial efforts, establishing large-scale plantations and using the organised labour system. By the early twentieth century India's total tea production grew rapidly and crossed 200 million pounds-mark by 1903. This expansion was aided by the establishment of organisations like the India Tea Association to address issues like labour, law and order and market expansion. The increased cultivation met a growing demand in Britain, where Indian teas were seen as a strong and affordable alternative to their Chinese counterparts. 

But the industry that began to serve the interest of the British consumers steadily turned into a huge organisation over the years serving consumers both at home and in more than 25 countries abroad. The Indian tea industry has grown to own many global tea brands and has evolved into one of the most technologically equipped tea industries in the world. From its legendary origins to modern processing techniques, tea production in India delicately weaves together cultural heritage, economic prowess, and technological advancement.

From its modest beginning, India has now become the second largest producer of tea globally, after China. In terms of quality, Indian tea is one of the finest in the world owing to specific geographical and soil conditions, heavy investment in tea processing units, continuous innovation, augmented product mix and strategic market expansion. As of 2022, a total of 6.19 lakh hectares of land was under tea production. India is also among the world's top tea-consuming countries, with 80% of the tea produced in the country consumed by the domestic population.

In 2024-25 India’s tea production was estimated at 1,390 million kg, compared to 1,382 million kg in the previous year. Understandably, tea production has been suffering in recent years as the scope for expiation of plantation areas has become limited. At the other end, the climatic changes and adverse weather conditions are affecting the yield rate of plants. What is significant, however, is that despite unfavorable weather conditions and stagnant tea acreage, the industry has succeeded in maintaining an upward production trend. Total tea production has grown over 100 million kg in the last four years, from 1,283 million kg in 2020-21 to 1,390 million kg last year.

In 2025, India’s domestic and export tea market was estimated to have generated a combined revenue of about 24 billion dollars with domestic consumption leading the charge. Data available on Statista shows, India's tea market continues to grow at an average growth rate of 7.05% annually trailing only China which is set to lead global revenue with $ 51 billion this year.

Not only in terms of higher production alone, the tea industry is fast evolving into a quality conscious diversified player to meet consumer preferences. Consumer choices have become increasingly sophisticated with the onset of globalisation. Customers have started demanding innovation and diversity in all sectors, as the variety of items available increased due to the removal of international barriers. The tea industry, which the country holds in high esteem, has also gone through a major shift, requiring firms to adapt to the most recent consumer trends in the market.

Interestingly, even as the tea production has spread to a number of states, Assam remains at the centre of this industry producing more than half of India’s total production. The estimated annual average production of tea in Assam is about 630-700 million kg.

Emergence of small growers

Much of Assam's success in retaining the prime position in tea production even after two centuries owes its origin to diversified production activities. Across this tea-growing belt in eastern Assam, people in large numbers have started growing the crop in small land ranging from three to five acres. Realising their growth prospects, they were provided with technical support and advice by experts at the Assam Agriculture University in Jorhat and also help from the Tocklai Tea Research Station for better yield and quality. The overheads and consequently the production cost of green tea leaves for small growers are much lower than those of the big gardens.

The rising number of small tea gardens and their contribution to the overall production attracted government attention. To improve the functioning of these small growers the government recently took a team of young tea farmers from Assam to Kenya and Sri Lanka to help them get firsthand knowledge about the success of small tea cultivation in these two countries.

A sizable number of small farmers especially in upper Assam have taken up tea cultivation during the last 15 years. Their relative contribution vis-à-vis the big gardens have been increasing steadily. Using clone varieties of tea seedlings on small holdings, these small and marginal farmers are dependent on their crop as the main source of income.

The emergence of small tea growers that began in the 1960s in the South and in the 1980s in Assam and West Bengal, driven by factors like the failure of other crops and the lifting of restrictions on small-scale cultivation, has become a huge success story backed by the industry and the government . Small growers, motivated by the potential for higher returns than traditional crops and the demand for tea, turned to tea cultivation, creating a significant new segment in the Indian tea industry. Their rise is also linked to the development of 'bought leaf factories' (BLFs), which process leaves from small growers, creating a vital, albeit sometimes unequal, link between cultivation and processing.

According to the industry estimates there are nearly 2.30 lakh small tea gardens in the country which contribute more than half of India’s total tea production, a figure that has been growing steadily over the years.

Recognising the importance of the small gardens the Tea Development & Promotion Scheme for the period 2023-24 to 2025-26 inter alia includes a range of incentives for them by mobilising them into self help groups (SHGs) and farmer producer organisations (FPOs). The assistance is aimed to increase their productivity and quality, greater value addition and thereby greater price realisation. The assistance/support is provided for common facilities like field mechanisation equipment, leaf carriage vehicles, leaf sheds, pruning machines, mechanical harvesters and storage facilities, setting up of new mini factories for production of orthodox, green and specialty teas, soil testing and capacity building through farm field schools.

Tea exports touched decadal high

India is a major exporter of tea. India’s tea exports soared to a decadal high of an estimated 258 million kg in 2024-25 making a significant achievement despite global market uncertainties caused by tensions. This was about three million kg more than that of the previous year. The growth was driven by north India's 8.15% export increase to 161.20 million kg, while South India saw a 4.92% decline. The export price per kilogram also rose significantly by 12.65% to ` 290.97.            

India had become the world’s second-largest tea exporter in 2024, surpassing Sri Lanka. It exported a record 255 million kg of tea, a 12% increase from 228 million kg in 2023. Kenya remains the top tea exporter globally. India exports tea to over 25 countries, with major markets including the UAE, Iraq, Iran, Russia, the USA, and the UK. Assam, Darjeeling, and Nilgiri teas are among the finest in the world. Black tea dominates exports at 96%. The Tea Board of India is promoting production, branding, and welfare of tea-growing families. The country’s main export is black tea, though it also exports green, herbal, and masala teas.

The bulk of the export has come from the orthodox segment, the growth of which has been supported by various schemes launched by the Union and state governments in recent times. With the favourable export policy by the Centre and support by the state governments, the industry is hopeful of increasing its export basket in the years to come.

That India is leading the world’s tea export market is not a surprise as the very production of tea began in the country with the sole purpose of exporting it to the United Kingdom. The history of India’s tea export began in 1838 with first shipment of Assam tea to the United Kingdom, a venture initiated by the East India Company to break China’s monopoly and reduce its own trade deficit. The British established large-scale cultivation in Assam and later in other regions like Darjeeling, growing the industry by the mid-19th century and expanding exports across the globe. Today, India is a major global tea producer and exporter, though a large portion of its production is consumed domestically.  

Challenges faced by tea industry

Despite record production and exports last year, the tea industry is facing financial instability due to rising input costs, stagnant prices, and weather-related crop loss. It also struggles with intense competition from other tea-exporting countries, a ban on certain pesticides, and the impact of large volumes of low-cost imports. These factors lead to poor profitability, particularly for small growers, and contribute to challenges like garden closures and stagnant or low wages for workers.  

Back in the garden, the dramatic climate change in recent years seems to have become a major challenge. It is affecting the industry through higher temperatures, erratic rainfall and increased pest infestations, which are decreasing both the yield and crop quality.. Rising temperatures cause stress on plants, while extreme rainfall can lead to erosion and water logging, and unpredictable weather patterns promote pests and diseases like the tea mosquito bug. These factors reduce overall productivity and force farmers to use more chemicals, potentially impacting the taste and price of tea.  

Post script

India is happy that tea production is rising and the country is back to its premier export position, But among all these the fight for survival of the tea workers are often pushed behind the curtain. The plight of the workers involves issues like low wages, as low as ` 5000 a month in some places that are insufficient for a livelihood and poor working conditions including long hours and physical hardship.. They also face miserable living conditions in unhygienic housing with a lack of basic services like clean drinking water and sanitation. 

The workers also face inadequate access to essential services

like healthcare and education. Despite legislation like the Plan-tations Labour Act (PLA) of 1951, enforcement is often weak, leaving workers in a cycle of poverty. A 2022 parliamentary committee report noted the "abject" and "inhumane" living conditions, comparing them to colonial-era exploitation and citing weak political will as a major issue. The result is that workers are denied the benefits they are legally entitled to, including proper housing, healthcare, and social security.