Bananas and chillies contributing more to the economy than a decade ago

Bananas and chillies have been contributing more to output as trade jumps

India’s agricultural growth rate has had a sweet and spicy high in recent years, with bananas and chillies extending their share of contribution in farm output to the highest levels in more than a decade, according to a Moneycontrol analysis.

Bananas, which in FY23 overtook mangoes as the fruit contributing the most to India’s GDP further widened its lead in FY24, as per latest government data released last week. The share of bananas in total fruit and vegetable output rose to 10.7 percent, compared with 10.5 percent in FY23 and 9 percent in FY12.

Fruits and vegetables now account for over a fourth of India’s overall food output.

Contribution of spices to India’s agricultural output too has risen. Since FY19, spices and condiments have overtaken pulses in terms of contribution to domestic farm output. In FY24, the category had a 5.9 percent share in food output, with over 22 percent of it coming from chillies, as compared to 19 percent before the pandemic.

Data shows that in FY24, the contribution of pulses to India’s crop output at 4.68 percent was the lowest in eight years, as their share declined from 5.08 percent in the previous fiscal. Following this, the Centre announced Atmanirbhar mission for pulses in FY25 to boost production.

India's pulses inflation remained in double-digits for the most part of FY25.

Spiced Up

India’s push for cultivation of spices has come at a time of rising trade from India, with exports growing by 37 percent to $36.8 billion in FY24 as compared to $27.6 billion in FY18. The year gone by is set to be another good year, as data till February shows a 3 percent growth over a similar period in the previous fiscal.

Going Bananas

India's Banana exports have risen even faster, growing at the rate of 391 percent between FY18 and FY24. In the first eleven months of FY25, banana exports were up 30 percent over similar period during the previous year. Bananas accounted for a sizeable 40 percent of India's $879 million fruit trade during April-February 2025.