EU, Vietnam push India's seafood exports to record move from US

New Delhi: India has been rapidly diversifying its labour-intensive seafood exports after the US imposed punitive tariffs last year, with Vietnam, the European Union (EU), China, Russia and Japan emerging as major growth drivers in 2025-26 (FY26).

Diversification also drove India’s seafood exports to a record $8.28 billion in 2025-26 as strong growth in shipments to Vietnam and the EU outweighed a decline in exports to the US.

The shift comes as Indian seafood exporters increasingly reduce reliance on the US, traditionally the country’s biggest seafood market, amid reciprocal tariff pressures, weaker consumer demand and supply chain disruptions.

The latest government data shows Vietnam has emerged as the fastest growing destination for India’s seafood exports, with shipments rising 69.5% year-on-year to $656.84 million in 2025-26.

The exponential growth is due to Vietnam increasingly serving as both a fast-growing consumer market and a processing center for re-exports, particularly of value-added shrimp and seafood.

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The EU also saw strong growth, with Indian seafood imports up 41.4% to $1.59 billion from $1.12 billion a year earlier. Exports to China rose 26.21% to $1.61 billion, while shipments to Russia rose 24.18% to $149.1 million, data released by the Marine Products Export Development Office under the Ministry of Trade and Industry showed.

“The decline in exports to the US largely reflects the impact of reciprocal tariffs that remained in place until they were struck down by the US Supreme Court in February 2026. During this period, Indian exporters actively diversified into alternative markets such as Vietnam, the EU and Russia, enabling the sector to maintain overall export growth despite weakness in the US market,” said Ajay SrivaTRI, Founder, Global Trade Research Initiative.

Exports are rising

Exports to Japan climbed 10.06% to $452.95 million during the fiscal period. In contrast, exports to the US declined by 14.21% to $2.33 billion in 2025-26 from $2.71 billion in the previous year.

“The EU market has seen strong export growth as it launched 102 new Indian fishing facilities for export from India to EU member countries last year. Vietnam’s demand for raw materials has also increased as a large portion of Indian seafood, especially shrimp, is processed and redistributed from there. China has also emerged as a key destination,” said KN Raghavan, general secretary of the Seafood Exporters Association of India.

Inquiries emailed to the Department of Commerce and the embassies of Vietnam, Japan, Russia and China remained unanswered as of press time.

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The strong growth in exports to Vietnam is significant because the country functions not only as a consumer market but also as a major processing and re-export center for seafood. Indian shrimp and other seafood products are often processed in Vietnam before reaching destinations such as China, Europe and other East Asian markets.

Meanwhile, growth in exports to Russia points to expanding opportunities in newer geographies as geopolitical changes reshape food trade patterns. Since the disruption of traditional trade routes and punitive changes in sourcing strategies, Russia has emerged as a promising destination for agricultural and marine products from India.

Premium market

Japan, a premium seafood market with strict quality standards, also showed steady growth. Analysts said the increase in exports to Japan reflected growing acceptance of Indian seafood products and stronger adherence to quality standards.

Trade economists see this as a sign that India’s seafood sector is gradually reducing its dependence on the US market and building resilience through diversified export destinations.

“India’s expanding seafood exports to Europe, East Asia and emerging markets highlight the growing global competitiveness of the sector and its ability to rapidly adapt to changing trade conditions,” said Abhash Kumar, trade economist.

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Amid expectations of better market access and stronger demand from key destinations, the seafood export sector remains optimistic about growth prospects in the current financial year, driven by ongoing trade discussions and steady performance in traditional markets.

“We expect seafood exports to grow further this year, supported by the government’s ongoing discussions on a free trade agreement with the US, while new markets are also expected to do well.” said MR Premchandra Bhat, director of Kerala-based Mangala Marine Exim India Private Ltd.