India Coffee Sector Brews Global Success: India’s coffee industry, one of the most culturally rich and historically rooted sectors in the country, is entering a transformative phase. What began centuries ago as a modest cultivation practice in the misty hills of southern India has grown into a globally recognised success story. Today, India coffee sector brews global success not only as a producer of fine-quality beans but also as a growing force in the international specialty coffee market. With production rising, exports touching billion-dollar milestones, and new policy initiatives boosting domestic and international opportunities, India is carving out a premium space in the global coffee landscape.
This new chapter is built on a heritage that dates back over 400 years—an era when a traveling Sufi saint unknowingly planted the seeds for one of India’s biggest agricultural triumphs.
A Historic Journey: From Baba Budan to a Global Coffee Identity
India’s coffee legacy began in the 1600s, rooted in the tale of Sufi saint Baba Budan, who is believed to have smuggled seven coffee seeds out of Yemen. These seeds were planted on the slopes of the present-day Baba Budan Giri hills in Karnataka, a region that would eventually become the birthplace of Indian coffee.
At first, coffee remained a garden crop grown in small patches, but its popularity and commercial potential expanded significantly through the 18th century. European planters, impressed by India’s climate and shaded terrain, recognised the region’s unmatched potential for coffee cultivation. Over time, plantations spread across the Western Ghats, ushering in a new agricultural revolution that would support millions of livelihoods.
Today, coffee is cultivated across 4.91 lakh hectares spanning the Western and Eastern Ghats as well as the North-Eastern hill regions. The sector directly and indirectly supports more than two million people, 99% of whom are small and marginal farmers. Their collective contribution has shaped India into one of the world’s most respected coffee-producing nations.
Regional Richness: The Diverse Geography of Indian Coffee
What makes Indian coffee stand out globally is the remarkable diversity in its growing conditions. The country boasts 13 officially recognised coffee zones, each with distinct agro-climatic features that influence the flavor, aroma, and quality of the beans.
Top Coffee-Growing Regions Known Worldwide
- Coorg (Kodagu), Karnataka
- Chikkamagaluru, Karnataka
- Bababudangiris, Karnataka
- Wayanad, Kerala
- Nilgiris, Tamil Nadu
- Araku Valley, Andhra Pradesh
- Manipur & Nagaland (emerging specialty coffee hubs)
Karnataka dominates Indian coffee production, consistently contributing over 2.8 lakh metric tonnes (2025–26 post-blossom estimates). Kerala and Tamil Nadu follow as major producers, offering both Arabica and Robusta varieties grown under India’s signature two-tier shade system, a method recognised globally for enhancing bean quality and biodiversity.
This unique cultivation approach—where coffee grows under natural forest canopies alongside pepper vines, fruit trees, and native flora—creates a complex microenvironment that enriches the coffee profile while supporting ecological sustainability.
India’s GI-Tagged Coffees: A Global Badge of Authenticity
India’s commitment to quality is further reinforced through Geographical Indication (GI) tags, which protect and promote coffees known for their distinctive identities. The country holds seven GI tags for coffee, including:
- Coorg Arabica Coffee
- Wayanad Robusta Coffee
- Bababudangiris Arabica Coffee
- Araku Valley Arabica Coffee
- Monsooned Malabar Coffee (internationally acclaimed)
- Chikmagalur Arabica Coffee
- Niligiris Robusta Coffee
Each variety carries a unique flavor narrative—ranging from the bold, earthy tones of Wayanad Robusta to the fruity, aromatic notes of Araku Valley Arabica. Among them, Monsooned Malabar, renowned for its smooth, mellow profile created through monsoon exposure processes, has achieved cult status in European specialty markets.
Premium labels such as Mysore Nuggets Extra Bold and Robusta Kaapi Royale have also strengthened India’s position as a producer of high-end commercial and specialty coffees.
Institutional Backbone: The Coffee Board of India’s Pivotal Role
Established under the Coffee Act of 1942, the Coffee Board of India functions as the sector’s guiding force. Its work spans research, development, market support, and global promotion.
Key Areas the Coffee Board Drives
- Scientific research at the Central Coffee Research Institute (CCRI)
- Integrated Coffee Development Project for farmer support
- Export facilitation, quality certification, and global outreach
- Promotion through events like The Fine Cup Awards
- Expansion of Indian coffee culture through India Coffee Houses
These efforts collectively strengthen the entire coffee ecosystem, from plantation-level improvements to enhancing India’s reputation in international markets.
Export Boom: India Emerges as a Leading Global Supplier
India’s coffee export journey has accelerated dramatically in recent years. The country is now the fifth-largest coffee exporter in the world, with shipments reaching historic highs.
Record-Breaking Export Performance
- USD 1.8 billion in FY 2024–25, a 40% jump from the previous year.
- USD 1.07 billion exported during April–September 2025 alone.
- Nearly 70% of India’s annual output of 360,000 tonnes is exported to 128 countries.
Top Export Destinations
- Italy
- Germany
- Belgium
- Russia
- UAE
- Japan
- Switzerland
Indian Robusta continues to dominate the global instant coffee industry, while Arabica exports are gaining momentum in specialty markets hungry for sustainable and traceable origins.
This surge underlines how India coffee sector brews global success, driven by rising demand, farmer-led innovation, and enhanced global visibility.
Policy Reforms Strengthening the Sector
Supportive government policies have also played an essential role in accelerating the industry’s growth.
Major Policy Boosts
- GST reduction on instant coffee from 18% to 5%
- Expected to lower consumer prices
- Stimulates domestic consumption
- Boosts local processing industries
- Tariff concessions under new trade deals, including:
- India–UK Comprehensive Economic and Trade Agreement (CETA)
- India–EFTA Trade and Economic Partnership Agreement (TEPA)
These agreements offer Indian roasted and instant coffees duty-free access to premium global destinations such as:
- UK
- Switzerland
- Norway
- Iceland
This enhanced access ensures Indian brands can compete more effectively on the global stage.
Tribal Empowerment: Koraput Coffee Sets a New Benchmark
One of the most inspiring success stories in India’s coffee sector is the rise of Koraput Coffee in Odisha. Driven by tribal communities and supported by the Tribal Development Co-operative Corporation of Odisha Ltd. (TDCCOL), this initiative showcases the transformative power of sustainable agriculture.
Key Achievements of Koraput Coffee
- Recognised nationally through Fine Cup Awards
- Expansion into branded cafés and packaged products
- Growing market presence in premium retail segments
- Empowerment of tribal farmers through better prices, training, and branding
Koraput Coffee represents how the India coffee sector brews global success, not just economically, but socially—uplifting some of the country’s most remote communities.
A Nation Brewing for the Future: Production Target of 9 Lakh Tonnes by 2047
Looking ahead, the Coffee Board has outlined an ambitious roadmap to scale India’s annual production from approximately 3.6 lakh tonnes today to 9 lakh tonnes by 2047. This target is supported by:
- Expansion of coffee plantations in non-traditional regions
- Climate-resilient varietal development
- Greater mechanisation and digital tools for farmers
- Boosting domestic consumption through the café revolution
India’s coffee market is projected to grow at a CAGR of 8.9% through 2028, with the café and out-of-home consumption segment soaring at 15–20% annually. As urban lifestyles evolve and café culture deepens, India is emerging as a significant consumer market in addition to being a global supplier.
A Global Identity Rooted in Heritage and Innovation
From its mystical beginnings in the Baba Budan Giri hills to its rise as a global exporter, India’s coffee sector has journeyed through centuries of transformation. Today, it stands on the brink of a new era—one shaped by sustainability, farmer empowerment, premium branding, and international acclaim.
Indian coffee is now celebrated in cafés, specialty roasteries, and premium blends across Europe, the Middle East, and East Asia. Its distinctive flavor profiles, environmentally responsible production methods, and traceability standards have positioned it among the finest coffees in the world.
In every sense, India coffee sector brews global success as a story of resilience, innovation, and tradition—one that continues to captivate the world, cup by cup.
