India’s tea industry reached a historic milestone in 2025 as exports surged to record levels. Strong demand from Iraq and China drove this growth, demonstrating resilience amid global trade uncertainties.
Shipments climbed by 9.5 per cent to 280.4 million kilograms (mkg) in 2025, up from 256.17 mkg in 2024. Although tariffs temporarily slowed exports to the United States, the surge marked a rare bright spot for the plantation sector, which has faced volatile prices and rising input costs.
Iraq became the top buyer of Indian tea, accounting for nearly one-fifth of exports. The United Arab Emirates followed closely, as exporters redirected some shipments to neighboring markets, particularly Iran. “The credit goes to exporters who have diversified effectively despite challenging circumstances,” said C. Murugan, deputy chairman of the Tea Board of India.
China also recorded a remarkable increase, with shipments more than doubling to 16.13 mkg from 6.24 mkg in 2024. Murugan said the Tea Board will focus on China this year through trade shows and government support. Although China produces mainly green tea, consumers increasingly demand India’s black orthodox teas.
Anshuman Kanoria, chairman of the Indian Tea Exporters’ Association, said promotional efforts could double exports to China. He emphasized diversification and warned that geopolitical volatility still threatens some major markets. “Multiple trade deals with the US and EU will create more certainty and help India’s trade this year,” he added.
India imposed a 50 per cent tariff on tea in the US from late August 2025, which temporarily slowed shipments. However, authorities lifted the tariff in mid-November, allowing Indian tea to enter the US market duty-free.
Looking ahead, the Tea Board plans to target North African markets, including Morocco, Algeria, and Tunisia, where tea consumption grows steadily. Officials also plan to expand exports to Afghanistan. Industry leaders aim to reach 300 mkg in 2026, provided exporters follow food safety and pesticide regulations.
Mohit Agarwal, director of Asian Tea Company, warned that the European Union’s new minimum residue limits could restrict conventional tea exports. Organic Assam gardens can meet the standards, but only a few currently qualify. Nevertheless, the government offers support to help exporters comply.
Overall, the record 2025 performance shows that Indian tea exports surged despite multiple challenges. With strategic diversification, government support, and strict compliance with international standards, the industry positions itself for further growth in the coming years.
