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India's Seafood Shift: How 18% Shrimp Export Growth Defies US Tariffs

India's seafood industry is successfully expanding beyond its traditional US market dependence. Shrimp exports grew by 18% in the first five months of FY26, reaching $2.43 billion in value. This growth was primarily driven by non-US markets including Vietnam, China, and Belgium, which saw exports double in some cases. The strategic diversification comes as US tariffs on Indian shrimp surged to nearly 58%, making alternative markets increasingly important for the sector's sustainability.

Key Points: India Seafood Exports Diversify Beyond US Amid Rising Tariffs

  • Shrimp export value rose 18% to $2.43 billion in first five months of FY26
  • Non-US markets accounted for 86% of incremental export value growth
  • US tariffs on Indian shrimp surged to nearly 58% post-August 2025
  • Vietnam and Belgium exports doubled as new markets strengthened
3 min read

India's seafood sector expands beyond US after tariffs, shrimp exports rise 18% in first five months of FY26: Report

India's shrimp exports surge 18% as seafood sector expands to Vietnam, China, and EU markets, reducing dependence on US amid tariff pressures.

"India's seafood sector is gradually broadening its market presence beyond traditional markets like the USA - CareEdge Ratings Report"

New Delhi, November 24

India's seafood sector is gradually expanding its global market reach beyond its traditional dependence on the United States, as exporters diversify to counter the impact of rising tariffs.

Shrimp exports recorded strong growth during the first five months of FY26, supported primarily by demand from non-US markets, including Vietnam, Belgium, China and Russia, a report by CareEdge Ratings highlighted.

It stated "India's seafood sector is gradually broadening its market presence beyond traditional markets like the USA".

According to the report, shrimp exports grew significantly in 5MFY26, with the total export value rising 18 per cent year-on-year to USD 2.43 billion. This growth came alongside an 11 per cent increase in shipment volumes, which reached 3.48 lakh metric tonnes (LMT). Much of the momentum was driven by non-US markets, which accounted for 86 per cent of the incremental export value.

Exports to non-US destinations surged 30 per cent year-on-year to USD 1.38 billion during the first five months of FY26 (5MFY26), compared to USD 1.06 billion in the same period last year. The shift reflects a strategic expansion by Indian exporters into newer and previously less accessible global markets.

As a result, the share of non-US markets in total shrimp exports increased from 51 per cent in 5MFY25 to 57 per cent in 5MFY26.

The report also added that a rise in non-US exports has helped cushion the pressure emerging from the US market, where Indian shrimp has faced sharply higher tariffs since early FY26.

Between April and August 2025, the effective tariff on Indian shrimp shipments to the US averaged around 18 per cent, compared with 13-14 per cent for key competitors Ecuador and Indonesia.

Post-August, effective duties on Indian shrimp surged to nearly 58 per cent, while competing nations faced duties between 18-49 per cent.

Among non-US destinations, China remained the largest buyer, with exports rising 16 per cent. Japan, which earlier functioned primarily as a reprocessing market, maintained stable levels. Vietnam's role as a re-export hub strengthened, as exports doubled to USD 0.18 billion.

Exports to Belgium also doubled to USD 0.14 billion, driven by improved demand from the European Union and stronger compliance with traceability requirements by Indian exporters.

The report noted that while export momentum may soften in the second half of FY26 due to continued pressure from the US market and weaker fresh orders, efforts to open access to new markets and increased approvals for Indian units exporting to the EU and Russia are expected to support the industry.

- ANI

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Reader Comments

R
Rohit P
Finally some smart diversification! We've been too dependent on US market for too long. Vietnam doubling imports and EU compliance improving - this is the way forward for Indian exports.
A
Arjun K
The 58% tariff from US is quite unfair compared to competitors. But our exporters turned challenge into opportunity. China, Russia, Belgium markets growing - that's strategic thinking!
S
Sarah B
While the growth numbers are impressive, I hope this diversification is sustainable. The report mentions momentum may soften in second half - hope government provides adequate support to maintain this positive trend.
V
Vikram M
From coastal Andhra to Gujarat, this growth means more employment in fishing communities. Non-US markets now 57% share - that's a major shift in just one year! 👏
M
Michael C
The EU compliance and traceability improvements are crucial for long-term growth. Indian seafood quality is world-class - just need better market access and fair trade practices globally.

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