Archive · 6 Sep 2026
India Considers Easing FDI Rules for More Plantation Crops
India is thinking about letting foreign companies invest in more types of plantations.
Bananas could be one of the crops included in the new rules.
The Commerce and Industry Ministry is asking businesses and other groups for their views.
Foreign investment is already automatically allowed in several plantation sectors, such as tea, coffee, rubber, cardamom, palm and olive trees.
India grows more bananas than any other country, producing over 30 million tonnes each year.
However, India sells only about 1% of the world's exported bananas.
Banana exports were worth $377.5 million in 2024-25.
The government wants to increase that amount to $1 billion in the coming years.
The government is considering allowing more commercial crops, including bananas, to receive foreign direct investment.
The Commerce and Industry Ministry is consulting stakeholders on possible changes to plantation-sector FDI rules.
At present, 100% FDI through the automatic route is permitted for tea, coffee, rubber, cardamom, palm and olive plantations.
India produces more than 30 million tonnes of bananas annually but has only a 1% share of global banana exports.
India exported $377.5 million worth of bananas in 2024-25 and aims to raise exports to $1 billion.
- Who
- The Government of India and its Commerce and Industry Ministry are considering the change.
- What
- The government is considering liberalising foreign direct investment rules to cover more commercial plantation crops, potentially including bananas.
- When
- The proposal was under consideration as of September 6, 2026; existing FDI figures cited cover April 2000 to March 2026.
- Where
- The policy concerns India’s plantation sector, including banana-producing states such as Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu and Uttar Pradesh.
- Why
- The government is seeking more investment and wants to expand India’s banana exports, which currently represent 1% of global exports.
- Current permitted FDI
- Up to 100% FDI through the automatic route is allowed in tea, coffee, rubber, cardamom, palm and olive oil tree plantations.
- Potential expansion
- Bananas were specifically cited as a commercial crop that could be included.
- Banana production
- India produces more than 30 million tonnes of bananas annually and accounts for 26.45% of global production.
- Banana exports
- India exported bananas worth $377.5 million in 2024-25, an increase of about 30% year over year.
- Export target
- India aims to increase banana exports to $1 billion in the coming years.
- Leading producing states
- Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu and Uttar Pradesh together contributed around 67% of India’s banana production in 2022-23.
- Existing FDI inflows
- India received $295.23 million in tea and coffee and $3.93 billion in rubber goods between April 2000 and March 2026.
