India’s seafood sector is strategically expanding its global market reach and reducing its traditional dependence on the United States by diversifying exports to offset rising tariffs under the Trump administration.
Shrimp exports grew strongly in the first five months of fiscal 2026, supported by strong demand from non-U.S. destinations including Vietnam, Belgium, China and Russia, according to CareEdge Ratings. Export value rose 18% year-on-year to USD 2.43 billion, driven by an 11% increase in shipments to 3.48 lakh metric tonnes (LMT).
The report said, “India’s seafood sector is gradually expanding its market presence beyond traditional markets like the US,” ANI reported.
Markets outside the US account for much of the growth
Non-US markets accounted for a significant 86% of export value addition, with shipments to these destinations rising 30% year-on-year to $1.38 billion in the first five months of FY26 (5MFY26), up from $1.06 billion a year earlier. Their share of total shrimp exports increased from 51% in 5FY25 to 57% in 5FY26.
This strategic expansion of Indian exporters into newer and previously less accessible global markets has helped to ease the pressure arising from the challenging US market.
US Tariffs and Competitive Disadvantage
Indian shrimp exports to the US have faced significantly higher tariffs since the start of FY26, averaging around 18% between April and August 2025, compared to 13-14% for competitors such as Ecuador and Indonesia.
After August, effective tariffs on Indian shrimp rose to nearly 58%, while competing nations faced tariffs between 18-49%.
Key markets outside the US and their role in India’s growth
Several destinations outside the US have shown a significant increase in demand for Indian seafood.
— China remained the largest buyer, with exports up 16%.
— Japan, which previously functioned as a reprocessing market, maintained a stable level of exports.
— Vietnam strengthened its role as a re-export hub, with exports doubling to $0.18 billion.
— Belgian exports also doubled to $0.14 billion, driven by better demand from the European Union and stronger compliance with traceability requirements by Indian exporters.
Outlook for the sector
CareEdge warned that momentum may moderate in the second half of FY26 due to pressures in the US market and weaker fresh orders.
However, the industry is expected to find support through efforts to open access to new markets and more approvals for Indian units exporting to the EU and Russia, ANI reported.
