India weighs widening plantation FDI rules to include bananas
The government is discussing broader plantation-sector FDI liberalisation that could cover bananas, as it seeks to raise banana exports from $377.5 million in FY25 to $1 billion in coming years. The move could reshape investment and sourcing across fresh-produce supply chains.
What happened
Government of India · The government is discussing wider plantation-sector FDI liberalisation, potentially including bananas. India, the world’s largest banana
Key facts
- 100% FDI currently permitted under the automatic route for tea, coffee, rubber, cardamom, palm and olive oil plantations
- $3.93 billion FDI received in rubber goods between April 2000 and March 2026
- $295.23 million FDI received in tea and coffee, including processing and storage, between April 2000 and March 2026
- India produces more than 30 million tonnes of bananas annually
- India accounts for 26.45% of global banana production, or 35.36 million tonnes
- India's global banana export share is 1%
- India exported bananas worth $377.5 million in 2024-25, up about 30% year-on-year
- India targets $1 billion in banana exports in coming years
- Five states account for over 67% of India's banana output in 2022-23
Why this matters
Companies with produce sourcing, cold-chain or export infrastructure should assess partnerships or acquisitions in India’s banana ecosystem before policy changes attract larger global plantation investors.