The history of tea in India is one filled with global trade, international politics and ancient Ayurvedic science. Blend them together and you have something to chat about over a cup of chai.  

It all starts with the reality that tea plants are native to only two regions in the world: China and India.

When a Scotsman named Robert Bruce became aware of the tea plantations in Assam in 1823, he sought a friendship with the local leader at the time. The Sanghpo tribesman, Bessa Gaum, gifted Bruce with seeds and samples which Bruce promptly took across the border to India.

Recognizing the high-value of the prized beverage that could compete against the predominant Chinese tea market, the British East India Company began the full fledged commercial production of tea and is still flourishing today. 

Trade

After being discovered nearly 5000 years ago in China, tea became a key part of global trade, starting as early as the year 879. It became the commodity of choice for the Dutch East India Company, Italian and Portuguese merchants and the infamous British East India Company. 

Here are 3 reasons why tea gained such popularity through the 16th-18th centuries:

Tea was initially introduced as a medicinal beverage for the European elite, an imported luxury that only few could afford

A 95% drop in coffee production in the 19th century due to a rare fungus that spread across Ceylon, further cemented tea’s popularity

The increasing availability of cane sugar which allowed the British to enjoy their tea sweetened. Due to the rising demand for tea, the colonial regime’s then smuggled tea plants from China to India to grow across Assam, Darjeeling and Ceylon

Simply put, the British Empire was responsible for the popularization of tea during this time. They made tea an integral part of the global economy, and built a fortune in the process (while extracting billions in wealth from its colonies, specifically India).

Though the tea trade initially was meant for export, the British soon realized the great potential of promoting and selling the beverage to the local people of India. Once it became readily available and affordable, it didn’t take long for chai to become a popular drink amongst Indians. 

Combining spices with water was already popular in Ayurvedic practices as cardamom and cloves were at the center of ancient healing rituals. The added boost of energy from the malty and stringent Assam Black tea was embraced by the local population and masala chai soon became ubiquitous. 

Indian tea industry

Chai is the national drink of India. While the original word ‘cha’ literally refers to the tea leaf; chai in India refers to the fragrant symphony of warm spices and black tea infused with milk.

The Indian tea industry today is the world’s 2nd largest and it’s consistently one of the largest tea producers in the world. Today, Indian tea gardens have expanded beyond just Chabua in Assam to those in Darjeeling, where Chinese seeds were planted in 1835. 

Indian tea companies produced a whopping 3.9 million pounds of tea in 1874. The tea trade has continued to flourish after India’s independence in 1947 and in 2021, India produced 1,283 million kgs of tea. Now, that’s a lot of chai. 

Consumption

Chai is the ultimate comfort beverage. The national drink of India, a total of 1.1 billion kilograms of chai was consumed in India in 2022. Chai is consumed 5x more than coffee in the South Asian subcontinent.

The per capita consumption of tea in India, however, is moderate - ranking 28th on the international list, primarily because of the way it is consumed in India. A lot of it is consumed in tiny “cutting glasses'' where the proportions are a lot less to keep it affordable for working class individuals, young people and everyone in between. 

Production

The Indian market for tea is second only to China. Indian tea production dates back to 1903 when the Indian Tea Cess Bill was passed. The law levied tax on tea exports, and its proceeds were used to promote tea both in India and outside. 

Market

The tea market is one of the primary exports in India. New demand arising in Western countries and continued consumption of the Middle East make tea a formidable player in international commerce. 

While historical data points to Ayurvedic beverages featuring spices, tea is documented to have been consumed by Indians since the 15th century.

Industry

But the mass market and demand for tea really developed once the British East India Company began promoting it locally in India in an effort to outdo neighboring China. 

Today, even after centuries, the tea industry is one of the most significant trades in the world. 

Tea market

China, India, Kenya, Sri Lanka, and Vietnam are usually the top exporting countries in terms of the tea market. Weather and natural calamities other than the winds, determine which country will profit the most, but as demand grows, the Indian tea industry is experiencing a boom in demand.

Growth

The expected production of tea in India will surpass ~500 million pounds this year in India. This is in the face of excessive rain, drop in prices, and raising wages for tea plantation workers which shows how the 

sheer demand for Indian tea is on the rise worldwide. 

Domestic consumption of tea is also on the rise. The consumption estimates for 2022 for India alone are at 1.3 million tons. 

A country known for its no-nonsense affordable cups of masala chai is moving to the specialty world. As millennials and Gen Z’ers join the workforce, they increasingly have access to disposable incomes which weren’t there before. Noticing the love for cafe culture, Indian companies have joined the rest of the world by introducing sophisticated tea cafes that feature progressive interior design, music and chill vibes for the new India to sip. 

The domestic market for chai in India is constantly evolving and growing.

Production

Tea gardens in Assam, Darjeeling, and Nilgiri are responsible for the bulk of production in India today. Together, they produce a variety of black and green teas ready for export. There are also smaller tea gardens present in Dehradun, Garhwal, Kangra Valley and Kulu. 

Companies

Although private tea plantations and tea gardens try to etch out a name for themselves, the majority of tea companies in India are conglomerates with a refined manufacturing and distribution cycle. 

Tata Global Beverages, McLeod Russel India, Rossell India, Jay Shree Tea & Industries, and Assam Company are a few of the 30 listed companies devoted to the production and distribution of tea. 

Tea and India have a long history. Published accounts show that the people have had a deeply special relationship with tea as early as the 15th century. 

Today, tea is the second most popular beverage (after water), and masala chai is growing in popularity every day. Speaking of which, have you had your cup of the day yet?