How US Tariffs Challenge India’s US$7.38 Billion Seafood Exports?
- Remin Francis I R
- Aug 25
- 2 min read
India’s seafood export industry had a record-breaking year in FY 2023-24, reaching an all-time high of 17.8 lakh metric tonnes, valued at ₹60,523.89 crore (around US$7.38 billion). The star performer? Frozen shrimp, which not only accounted for 66% of the total value but also made up over 40% of the quantity exported. Andhra Pradesh is the biggest exporter of shrimp in the country, accounting for 60% of India's shrimp export. The USA and China have long been the primary markets for Indian seafood, with the top 10 markets contributing to nearly 80% of total export earnings.
The US continues to be the largest importer of Indian seafood by value, purchasing over US$2.5 billion worth of products. A staggering 91.9% of this was frozen shrimp. However, a looming challenge threatens this thriving sector: the imposition of high tariffs by the United States. A 59.71% tariff, including countervailing duties, anti-dumping duties, and a base 50% tariff, has made it harder for Indian exporters to stay competitive against countries like Ecuador, Vietnam, and Thailand, whose tariffs are much lower.
In response, the Indian government has encouraged seafood exporters to diversify their markets. Countries like the European Union, Japan, South Korea, and Russia are being looked at as potential alternatives to the US. Additionally, there is an emphasis on boosting domestic supplies, providing some cushioning against the tariff blow. India's Free Trade Agreement with the UK also holds promise for the sector, offering more favourable terms for seafood exports.
However, the challenges don’t stop there. India’s share of the EU seafood market has drastically dropped from 35% to around 11%. This decline is largely due to issues unrelated to US tariffs, including rejections over residue levels in Indian seafood. While India remains a powerhouse in shrimp exports, especially the Vannamei variety, it must overcome these hurdles to maintain its global position.
With the US imposing such heavy tariffs, it's crucial for Indian seafood exporters to adapt quickly, finding new markets and ensuring product quality to weather the storm and keep the industry afloat.
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