Government plans wider FDI in plantation sector
The Government is considering liberalising foreign direct investment (FDI) norms in the plantation sector by bringing more commercial crops under the ambit, an official said. The Commerce and Industry Ministry is holding stakeholder consultations on the issue, the official said.
“We are looking for more FDI liberalisation in the plantation sector like banana,” the official added.
At present, 100 per cent FDI under the automatic route is permitted in the tea sector, including tea plantations, coffee, rubber, cardamom, and palm and olive oil tree plantations. Besides these, FDI is not allowed in any other plantation sector/activity.
India has received $295.23 million FDI in tea and coffee (processing and warehousing coffee), and $3.93 billion in rubber goods during April 2000 and March 2026.
As per estimates, India is the largest banana producer in the world with over 30 million tonnes annually.
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 per cent even though the country accounts for 26.45 per cent of the world’s banana production (35.36 million metric tons).
In 2024-25, India exported bananas worth $377.5 million, about 30 per cent year-on-year growth. India is targeting to increase it to $one billion in the coming years.
The major export destinations for Indian bananas include Iran, Iraq, UAE, Oman, Uzbekistan, Saudi Arabia, Nepal, Qatar, Kuwait, Bahrain, Afghanistan, and the Maldives.
Additionally, the US, Russia, Japan, Germany, China, the Netherlands, the UK, and France present India with abundant export opportunities.
Banana is a major horticultural produce, with Andhra Pradesh being the largest banana-producing state in India, followed by Maharashtra, Karnataka, Tamil Nadu, and Uttar Pradesh. These five states collectively contribute around 67 per cent to India’s banana production in 2022-23.
