India's seafood sector is strategically diversifying its export markets beyond the United States in response to rising tariffs, according to a recent report. The sector has seen an impressive 18% surge in shrimp exports during the first five months of FY26, reaching $2.43 billion, with significant gains in non-US markets. This growth is further supported by an 11% increase in shipment volumes, totaling 3.48 lakh metric tonnes.
The shift towards non-US markets is becoming increasingly evident, with these destinations now accounting for a larger share of India's overall shrimp shipments. Specifically, non-US markets' share has risen from 51% in the first five months of FY25 to 57% in the same period of FY26. This transition highlights the conscious efforts of Indian exporters to broaden their global reach and reduce their reliance on the US market.
Several countries have contributed significantly to this export diversification. Vietnam, Belgium, China, and Russia together account for 86% of the additional export gains. Vietnam's import value doubled to $0.18 billion, establishing it as a crucial re-export hub. Similarly, Belgium saw its imports from India double, reaching $0.14 billion, driven by stronger demand within the European Union. China remains India's largest non-US buyer, with shipments rising by 16%.
Despite the overall positive growth, Indian shrimp exporters face challenges due to increasing tariffs imposed by the United States. Since the beginning of FY26, exporters have been dealing with steeper duties, including reciprocal charges layered on top of existing anti-dumping and countervailing levies. From April to August 2025, the effective tariff rate for Indian shrimp exports to the US was approximately 18%, significantly higher than the 13-14% faced by competitors like Ecuador and Indonesia. Following the introduction of higher tariffs on August 27, 2025, the duty on Indian shrimp surged to 58%, while rival suppliers continued to face tariffs ranging between 18% and 49%. This sharp increase has weakened India's price competitiveness in the American retail and food service sectors, providing an advantage to its competitors.
The report by CareEdge Ratings anticipates a moderation in India's shrimp export performance, projecting a 10-12% decline due to the ongoing tariff pressures from the US. Exports in August were already reported to be 35% lower than in July, signaling a potential slowdown in the coming months. However, early shipments to the US showed a mild improvement of around 5% between April and August 2025, attributed to "front-loading" exports ahead of the higher reciprocal tariffs that took effect on August 27, 2025.
The Indian seafood industry is proactively cushioning the impact of these challenges by exploring previously inaccessible markets and securing more approvals for Indian units to export to the EU and Russia. While the US has traditionally been the anchor market for Indian shrimp, its muted growth of around 5% in the first five months of FY26 indicates a strategic shift is underway.
