New Delhi, August 3, 2025 : Indian shrimp exporters are staring at an unprecedented setback in the US market following the imposition of reciprocal tariffs, further compounding existing trade barriers.
“The US accounts for nearly 48% of India’s shrimp exports. With the latest tariff hike, Indian exporters are now among the most heavily taxed in the American market,” said Rahul Guha, Senior Director at Crisil Ratings.
In addition to the fresh tariffs, exporters already face a 5.77% countervailing duty imposed last year and ongoing anti-dumping duties. In comparison, Ecuador—the world’s top shrimp exporter—bears a lighter load with a 10% tariff and 3–4% countervailing duties in the US.
As a result, India’s shrimp export volumes are projected to decline by 7–9% in FY26, despite exporters exploring alternative global markets.
Guha also warned of pressure on profit margins. “Operating margins are expected to shrink by 50–100 basis points due to the added cost burden and the limited ability to pass on these costs in a competitive landscape dominated by Ecuador,” he said. “The credit outlook for Indian shrimp exporters, already under strain, is likely to worsen.”
Despite the headwinds, India achieved record seafood exports in FY24, shipping 17.81 lakh metric tonnes worth ₹60,524 crore.
To support the sector, the Marine Products Export Development Authority (MPEDA) under the Commerce Ministry continues to focus on strengthening production and processing infrastructure. Major port-based projects—Visakhapatnam, Chennai, Paradip, Cochin, and Mumbai—are being modernised with full central funding of ₹651.14 crore under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), aligned with the Sagarmala initiative.
Over the past five years (2020–2025), the Centre has allocated ₹3,490 crore under PMMSY to improve fishing harbours, landing centres, and post-harvest infrastructure, aiming to boost marine exports and reduce value chain inefficiencies.
Still, with global trade dynamics shifting rapidly, India’s shrimp industry faces an uphill battle to maintain its footing in key markets like the US.
