PRODUCT

Indian Masala Chai

AND
(Teabag)
MARKET SELECTION
Objective: To justify the selection of the product and market

KUWAIT

9/23/21
Policies for Indian Masala Chai (Teabag) Export
AVAILAIBILTY:
• India second largest producer of tea.
• 45.86 million kgs exported between January to March in 2021
• In April 2021, estimated tea production in India stood at 73.44 million kgs.
• In April 2021, export of tea stood at US$ 49.73 million.
SUPPLY:
• More than 1000 tea suppliers
• 50 ports of India from where tea is exported
DEMAND
• Global Tea Market to Reach $67,920.8 Million and Surge at a CAGR of 6.6% from 2021 to 2028
• Kuwaitis prefer tea in hot beverages
MASALA TEA EXPORT:
• The HS code for tea :0902
• Masala tea export value 0.15% of total tea exported.
• 100% FDI in tea

EXPORT BENEFIT:
• Assistance and guidance by the Tea Board under various schemes:-
• Export Promotion Council schemes
• MAI
• Brand support
• 50% of FOB value of exports
• Global support for tea is provided
• Meeting between exporter s and importers held for better market reach
• GST 5%
Trade Relations with Kuwait
Bilateral trade relations between India and
Kuwait.
GCC: Gulf Cooperation Council
Category B : Emerging and focus
market
MEIS rate 5%
All spices under Chapter 09 of
Schedule 1 (Import Policy) of
ITC(HS) Classification of Export
and Import Items, 2017 applicable
Agreements between India and Kuwait in
Tea loving country
the Economic Field
Trade Agreement signed in
1.61 kg (57oz) per capita
February 1974. 
Cooperation Agreement for the Kuwait top 20 tea bag exports in 2018
Promotion of Economic,
Commercial and Technical (57373 Thousand Rupees)
Cooperation signed in February
1992. 
Tea exported to Kuwait duty free.
Agreement for Encouragement
and Reciprocal Protection of
Investment signed in
November 2001 and ratified in
June 2003.
Segment and Market Entry Strategy

Direct Export Segmentation

Demographic: Volume of Purchase

Direct Entry Strategy, more • Gender: All • Regular buyers
control over transactions, Higher profit margins • Age: 14+
customers

Behaviouristic

• Loyal tea drinkers

Direct Feedback and improved
Greater flexibility
performance
Sources
• www.dgftcom.nic.in
• www.teaboard.gov.
• www.ibef.org/exports/indian-tea-industry.aspx
• www.indembkwt.gov.in/india-kuwait-trade-and-economic-relation.php
• www.indiantradeportal.in
• www.commerce.gov.in
• www.wto.org