Abstract- The first discovery of the tea plant growing wild in India ( upper Assam ) in 1821. In 1835 the first tea garden was opened at lakhimpur district in Assam in 1838 the first twelve chests of tea from Assam were received in England. It was found that tea manufactured from Assam plants would be better than the Chinese variety. In this paper an attempt has been made to analyse the historical growth of tea industries in India under the brandname of Assam tea company which was formed in 1839. Observing great rush and interest in tea cultivation, the british government had to frame definite rules for the grant of land for tea cultivation. Since 1869 the tea industry has continued to prosper steadily. An attempt has also been made to analyse the measures taken by the british government in this regard. The study is based on secondary data and sources of material collected from different official and individual publication. Annual compound growth rates have been estimated using least square method. The most encouraging development of the tea sector of the states is the participation of unemployed youths as small tea grower and thereby helping to increase the tea production in the state. The total number of tea gardens ( large and small ) in Assam at present is around 41000 covering an area of 26 milion acres. the tea industry is also playing a vital role in the economic development of the state. It has become one of the most important foreign exchange earning industries in the country. However the tea industry of Assam, which is considered as main stay of the state’s economy, is now facing crisis. As the tea gardens in Assam are becoming age old, the productivity of these old gardens is declining. The conditions of tea estates in the states are not as productive as in the past. A considerable number of tea gardens of the state have gone sick over the period due to lack of infrastructure, modernization and efficient management. Another serious problem faced by the tea industry in Assam is the general fall in the price of medium and plain tea. For some time there were no buyers of such tea. In the prevailing general climate of globalization and dismantling of tariff barriers, Assam tea has been facing open competition. The sustainability of Assam tea thus depends on different factors like improvement in quality, cost effectiveness, control of diseases and pest attacks, increase in domestic demand, identification of newer export market etc. Keywords-component; market , globalization, british.