Banana Sector Could Gain Investment
New Delhi, September 6, 2026: The government is considering further liberalisation of foreign direct investment rules in India’s plantation sector, with commercial crops such as bananas potentially being brought under a more liberalised regime.
The Commerce and Industry Ministry is holding consultations with stakeholders on the proposal. An official said the government is examining the possibility of allowing greater FDI in plantation activities beyond the crops currently covered by the policy.
At present, 100 per cent FDI through the automatic route is permitted in tea plantations, coffee, rubber, cardamom, palm and olive oil tree plantations. Other plantation sectors are currently outside this framework.
The proposal could be significant for India’s banana industry, which is the world’s largest producer. India produces more than 30 million tonnes of bananas annually but has a relatively small share of the global export market.
India exported bananas worth USD 377.5 million in 2024-25, representing around 30 per cent year-on-year growth. The government is targeting banana exports of USD 1 billion in the coming years.
Indian bananas are exported to markets including Iran, Iraq, the UAE, Oman, Uzbekistan, Saudi Arabia, Nepal, Qatar, Kuwait, Bahrain, Afghanistan and the Maldives. Additional opportunities exist in markets such as the US, Russia, Japan, Germany, China, the Netherlands, the UK and France.
Andhra Pradesh is the country’s largest banana-producing state, followed by Maharashtra, Karnataka, Tamil Nadu and Uttar Pradesh. Together, these five states account for around 67 per cent of India’s banana production.
Greater foreign investment could support infrastructure, technology, processing, supply chains and export capacity in the plantation sector if the proposed liberalisation is implemented.
