India’s coffee sector is preparing for a major breakthrough as the India-European Free Trade Association agreement becomes operational from Monday (Sep, 30). This pact is expected to strengthen India’s presence in European markets, particularly in Norway, Switzerland, Iceland and Liechtenstein, the commerce ministry confirmed.
Coffee exports from India have been rising steadily, and the numbers highlight the momentum. In 2024-25, exports surged by 40.37 percent to touch 1.8 billion dollars compared to 1.29 billion dollars in the previous year. Such rapid growth is signalling India’s growing importance in the global coffee trade.
Commerce Secretary Rajesh Agrawal explained that India’s coffee exports are moving beyond traditional forms. Entrepreneurs are focusing on high-value categories like instant coffee and specialty coffee, which are increasingly in demand worldwide. At the inauguration of the Coffee Board’s new office and coffee experience zone on International Coffee Day, Agrawal said that Indian coffee has become both sustainable and competitive in recent years. He underlined that greater diversification is now visible across coffee-producing regions.
India is currently the seventh-largest producer of coffee in the world, according to the Coffee Board. While Brazil, Vietnam, Colombia, Indonesia, Ethiopia and Uganda remain major competitors, India’s coffee is steadily carving out a niche. Output has increased over the years, with production climbing from 84,000 tonnes in 2012 to 91,000 tonnes in 2023. This steady rise is a reflection of better farming practices and expanding areas under cultivation.
Agrawal also spoke about the promise of the domestic coffee market, which is still at an early stage of rapid growth. With the rise of India’s middle class and a growing preference for coffee drinking, the country is expected to see a sharp rise in local consumption. He said that it is only a matter of time before India becomes a large consumer of its own coffee.
The launch of the India-EFTA Trade and Economic Partnership Agreement marks a timely development for exporters. The pact will open new opportunities for Indian coffee in European countries with high levels of coffee consumption. The three EFTA member states collectively account for about three percent of global coffee imports, valued at nearly 175 million dollars every year, according to Coffee Board estimates. With tariff advantages and smoother access to these markets, India is expected to improve its competitiveness.
The commerce ministry has said that the agreement will help India capture a larger share of Europe’s premium coffee demand. As global consumers pay greater attention to quality and sustainability, Indian coffee is well positioned to benefit. The pact reduces barriers and gives India’s exporters a chance to expand their reach in markets where coffee is not just a beverage but a cultural staple.
With exports rising sharply, domestic consumption expected to grow, and access to new trade opportunities, India’s coffee industry is entering a transformative phase. The EFTA trade pact is more than a diplomatic agreement. It is a gateway for India to secure a stronger role in the global coffee economy.
