- The government plans to ease FDI rules in plantations, including more commercial crops like bananas
- Currently, 100% FDI under the automatic route is allowed in tea, coffee, rubber, and select plantations
- India is the world's largest banana producer but holds only a 1% share in global banana exports
The government is looking to ease foreign direct investment rules in the plantation sector by bringing more commercial crops under the policy, according to an official.
The commerce and industry ministry is currently holding discussions with stakeholders to explore the proposed changes, the official said. "We are looking for more FDI liberalisation in the plantation sector like banana," the official added.
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At present, 100% FDI under the automatic route is permitted in the tea sector, including tea plantations, coffee, rubber, cardamom, palm and olive oil tree plantations. FDI is prohibited in any other plantation-related sectors and activities.
Between April 2000 and March 2026, India has received $3.93 billion in rubber goods and $295.23 million in tea and coffee (including coffee processing and storage). With more than 30 million tonnes produced annually, India is considered to be the world's biggest banana grower.
Despite being the largest global producer of bananas, India's exports do not reflect this quantitative evaluation. India's export share in the global market is only 1% even though the country accounts for 26.45 % of the world's banana production (35.36 million tonnes).
In 2024-25, India exported bananas worth $377.5 million, about 30% year-on-year growth. India is targeting to increase it to $1 billion in the coming years.
Countries including Iran, Iraq, the United Arab Emirates, Oman, Uzbekistan, Saudi Arabia, Nepal, Qatar, Kuwait, Bahrain, Afghanistan, and the Maldives are among the main export markets for Indian bananas.
India also has a lot of export potential to the US, Russia, Japan, Germany, China, the Netherlands, the UK, and France.
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The biggest banana-producing states in India are Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu and Uttar Pradesh. Bananas are a major horticultural product. Together, these five states will produce over 67% of India's bananas in 2022–2023.
(With PTI Inputs)
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