India's seafood industry is executing a strategic global pivot, successfully expanding its market footprint to counter rising tariffs and reduce its historical dependence on the United States. This calculated move is paying rich dividends, as evidenced by robust growth in the first five months of the current fiscal year.
Robust Growth Driven by New Markets
According to a report by CareEdge Ratings, India's shrimp exports witnessed powerful growth in the first five months of fiscal year 2026 (5MFY26). The export value jumped by 18% year-on-year to reach $2.43 billion. This impressive financial performance was propelled by an 11% increase in shipment volumes, which touched 3.48 lakh metric tonnes (LMT).
The most significant revelation is the source of this growth. Non-US markets contributed a massive 86% of the incremental export value. Shipments to these alternative destinations soared by 30% compared to the same period last year, climbing from $1.06 billion to $1.38 billion. Consequently, the share of non-US markets in India's total shrimp exports expanded from 51% in 5MFY25 to 57% in 5MFY26.
The US Tariff Challenge and Strategic Shift
This diversification is a direct response to mounting challenges in the American market. Indian shrimp exports to the US have been saddled with sharply higher tariffs since the start of FY26. Between April and August 2025, the average duty was about 18% for Indian shrimp, compared to just 13%-14% for key competitors like Ecuador and Indonesia.
The situation deteriorated after August, when effective duties on Indian shrimp skyrocketed to nearly 58%, while rival nations faced tariffs in the range of 18% to 49%. This competitive disadvantage forced Indian exporters to accelerate their search for new buyers, a strategy that has effectively cushioned the sector from US market pressures.
Key Growth Markets Fueling Expansion
Several international destinations have emerged as crucial partners in India's seafood export growth story.
- China retained its position as the largest single buyer, with exports growing by 16%.
- Vietnam has strengthened its role as a major re-export hub, with Indian seafood exports doubling to $0.18 billion.
- Belgium also saw exports double to $0.14 billion, driven by stronger EU demand and improved compliance with traceability standards by Indian companies.
- Japan, traditionally a reprocessing market, maintained stable import levels from India.
Markets like Russia have also contributed to this expanded global presence.
Future Outlook for the Sector
While the current momentum is strong, CareEdge Ratings cautions that it may soften in the second half of FY26 due to persistent pressure from the US market and potentially weaker fresh orders. However, the industry is not without support.
The sector is expected to find stability through continued efforts to gain access to new international markets. Increased approvals for Indian processing units to export to the European Union and Russia will provide additional avenues for growth, ensuring the long-term resilience of India's seafood export engine.
