However, the most worrying factor for Indian tea industry is that from early next year with the implementation of tea imports into the country, India tea may face a stiff competition within the country as well, specially threat of Sri Lanka s presence in the Indian market is looming large. The current year s tea export prospect is not that very good in terms of forex earnings because international prices has fallen significantly this year . India exports between 150-170 million kilogram s of tea per annum. Of course, the scope of foreign investment in this sector is good and the multinational tea companies would either be trying for marketing joint ventures with the Indian producers or acquire stakes in Indian tea companies. There is strong possibilities of third country exports through such joint venture as quality wise still Indian teas are ruling the international market.
Alcoholic beverages is another are where India witnessed substantial foreign investment.
Foreign investment in this sector stood at Rs 7000 million which about 70 percent of the total investment made so far. Draught beer is a comparatively recent introduction in the Indian market. The Indian beer market is estimated at Rs7000 million a year. One of the major advantages for any investor eyeing the Indian liquor market is that India offers enough raw materials like molasses, barely, maize, potatoes, grapes, yeast and hops for the industry. Yet another catchy investment sector is fisheries .