India is the largest producer and consumer of tea in the world, accounts about 29 per cent of world production. In the global trade, Indian production contribution is about 30 per Gent and 23 per cent of China, respectively. This is because of high domestic consumption share of tea in these countries. The production trade in India since 1981 to 2000, the export of Indian tea in 1981 was highest as 241.25 million kgs and lowest in 1996 as 161.71 million kgs. Export of Indian tea is declined from 241.25 million kgs in 1981 to 201.00 million kgs in 2000. It is due to disintegration of Soviet Union, the export of Indian tea was badly affected. Domestic demand for tea for internal consumption has increased faster than that of production and it happens due to growing population and increase in habits of tea drinking. It is also recorded that during 1998-99 the country received Rs. 1006.87 crores from export of value added tea product. It means the export of value-added tea can earn maximum foreign exchange.