Export of Tea from India: Performance and Determinants

The study analyzed the trends in growth, instability, competitiveness, and determinants of tea export from India from 2001 to 2018. The analytical techniques applied in the study were Compound Annual Growth Rate (CAGR), Nominal Protection Coefficient (NPC), Augmented Dickey-Fuller (ADF) test, and multiple linear regression analysis. The major importing countries of tea export from India were the Russian Federation, United Arab, United Kingdom, Iran, and United States of America. The CAGR in terms of tea export value to major importing countries was positive and significant in Russia, Iran, the United States of America, and the United Kingdom. The instability index was found to be more in United Kingdom (23.78 percent), followed by the United Arab Emirates (22.86 percent), Russia (15.35 percent), the United States of America (7.89 percent), and Iran (6.26 percent). NPC indicated that tea was a competitive export product from India, but its competitiveness decreased during the study period. The estimated regression model of determinants of tea export showed a positive and significant relationship with international price and export price. The other three variables, such as exchange rate, domestic consumption, and lagged production, were non-significant.