A heavy blow to a high-value export
The magnitude of the problem was clear from the outset. In 2024–25, India had exported 1,698,170 tonnes of seafood valued at Rs 62,408.45 crore ($7.45 billion), and the US alone accounted for $2.71 billion of that, more than one-third of total seafood exports. The first 25% reciprocal tariff imposed in early August 2025 was justified by the US administration on grounds of trade imbalance and anti-dumping concerns. But tensions escalated further when another 25% penalty tariff was added on August 27 over India’s purchases of Russian energy. The cumulative 50% duty threatened to destabilise a sector heavily reliant on a single market.
Andhra Pradesh, responsible for nearly 80% of India’s shrimp exports and used to sending about 70% of its shrimp to the US, was particularly exposed. With shrinking margins and cancelled orders, several exporters and processing units were pushed into partial or complete shutdowns.
Cushioning the blow
Realising the urgent need to reduce dependence on the US, India moved swiftly to stimulate domestic demand for shrimp. The government established a committee under the National Fisheries Development Board (NFDB) to chart a strategy for building a sustainable home-grown market for crustaceans. Shrimp farmers themselves proposed practical innovations — from transporting live shrimp without water to setting up consumer-facing “experience centres” — to encourage wider domestic consumption. While the domestic market could not replace the vast US demand overnight, these steps were meant to provide crucial relief and laid the foundation for long-term market stability independent of US policy fluctuations.
Searching for new shores
The most decisive response, however, came in the form of aggressive export diversification. With the US suddenly becoming an uncertain and expensive market, India began reassessing older trade relationships and exploring new avenues. This pivot has already started showing results.
A major breakthrough came from Australia. After eight years of stringent restrictions, it approved imports of unpeeled prawns from Andhra Pradesh in October. The ban, imposed in 2017 following detection of the white spot virus, had long blocked Indian exporters from accessing this lucrative market. The renewed approval was particularly significant because Australian and New Zealand importers had been lobbying for access to Indian shrimp, and both countries typically import large volumes of seafood. For Andhra Pradesh’s struggling exporters, the opening of this market provided immediate relief and new revenue streams.
Opening up Europe and Russia
Even as diversification gained pace, strategic diplomacy played a crucial role in reopening high-value markets that had been constrained for years. Commerce and Industry Minister Piyush Goyal revealed that long-standing issues with the European Union had finally been resolved. For nearly a decade, the EU had sharply curtailed Indian fish imports due to quality control concerns. But with the problem now “ironed out,” as Goyal put it, 102 Indian fisheries have received approval to export to the EU again. The bloc is not only Europe’s largest unified market but also a region hungry for precisely the kind of shrimp that India produces.
Simultaneously, Russia has emerged as another promising frontier. With 25 Indian fisheries nearing final approval and more under consideration, Indian exporters are poised to leverage strong political relations and Russia’s growing demand for seafood. This realignment is especially relevant at a time when Russia’s trade patterns have been shifting due to geopolitical realignments, creating new openings for partners like India. India has identified more than 65 non-tariff barriers faced by its marine exports to Russia as as it aims to lower the trade deficit with the country, ET has reported.
A sector re-emerging stronger?
Despite the initial disruption caused by the Trump tariffs, India’s seafood industry has not only planned to weather the storm but begun to remodel itself in ways that could make it more resilient in the long term. By opening doors to Australia for the first time in eight years, restoring access to the EU after nearly a decade, and expanding its footprint in Russia and other emerging markets, India has rapidly diversified away from excessive reliance on the US.
An unintended benefit of Trump tariffs can be stregthening of India’s seafood industry. As India hopes to sign a trade deal with the US soon, India’s seafood industry will have a vastly expanded export market which can lead to a growth spurt if production rises.