Politics · India Bureau
India considers wider FDI access in plantation sector to boost exports
The government is exploring liberalised foreign direct investment rules for commercial crops including bananas, moving beyond current restrictions limited to tea, coffee and rubber. The Commerce and Industry Ministry is consulting stakeholders on expanding FDI eligibility across the plantation sector.
LSN India ·
New Delhi is considering significant liberalisation of foreign direct investment norms in its plantation sector, potentially opening doors for international capital in high-value crops currently restricted from external funding.
Government officials confirmed that the Commerce and Industry Ministry is conducting stakeholder consultations to broaden the FDI policy framework. Bananas have been specifically flagged as a priority crop for inclusion under liberalised investment rules, according to ministry sources.
Currently, India permits 100 per cent FDI under the automatic route only in tea plantations, coffee, rubber, cardamom, palm and olive oil tree cultivation. All other plantation activities remain closed to foreign investment. Since April 2000, India has attracted USD 295.23 million in FDI for tea and coffee processing and warehousing, alongside USD 3.93 billion in rubber goods imports and investments through March 2026.
The policy shift comes as India seeks to leverage its position as the world's largest banana producer, generating over 30 million tonnes annually. Despite this commanding global output, Indian banana exports remain significantly below production capacity, suggesting untapped commercial potential. Liberalised FDI access could inject capital and expertise to strengthen value-addition and export infrastructure in the sector.