After the United States imposed higher tariffs, India's seafood exports demonstrated remarkable resilience by strategically diversifying into new markets. This proactive approach mitigated the impact of the tariffs and sustained growth in the sector.
The tariffs, which increased to as high as 50% on some Indian goods starting in August 2025, significantly impacted the competitiveness of Indian products in the U.S. market. Between May and October 2025, exports to the U.S. fell by approximately 28.5%, representing a loss of $2.52 billion in export value. Shrimp exports, which traditionally accounted for a large portion of seafood exports to the U.S., were particularly vulnerable due to their low-margin nature.
In response to these challenges, Indian exporters shifted their focus to alternative markets in Asia, Europe, and the Middle East. This diversification strategy led to notable gains in exports to the European Union (EU), China, Vietnam, Russia, and the United Kingdom.
The EU's decision to approve 102 additional Indian marine units for seafood exports significantly boosted shipments of prawns and frozen shrimp to the trading bloc. Exports to the EU increased by 55% between April and October, reaching $448 million, compared to $290 million during the same period last year. Overall, exports to the EU rose 40% in value, with shrimp exports growing by 57% due to the listing of the 102 fishery units. This expansion reflects growing confidence in India's food safety and quality assurance systems, marking a significant step forward in enhancing market access for Indian seafood products.
Exports to non-U.S. markets increased from 51% to 57% during the first five months of FY26, with export value from these regions jumping 30% (from $1.06 billion to $1.38 billion). While the U.S. remains an important market, Indian exporters have successfully reduced their dependence on it.
The Indian government has also played a crucial role in supporting exporters through various measures. These include negotiating for a fair trade deal with the U.S., providing financial relief through the Reserve Bank of India (RBI), offering collateral-free loans, rationalizing the Goods and Services Tax (GST), and pursuing Free Trade Agreements (FTAs) with other countries. The RBI introduced trade relief steps to ease financial pressure on exporters, and the government's credit guarantee scheme encourages banks to lend money by sharing the risk.
This multi-pronged approach has enabled Indian seafood exporters to navigate the challenges posed by U.S. tariffs and maintain a positive growth trajectory. By diversifying into new markets and focusing on product and species diversification, the Indian seafood industry has demonstrated its adaptability and resilience in the face of adverse trade conditions. While redirecting all exports previously destined for the U.S. may not be immediately feasible, these strategic steps provide vital momentum for India's long-term market diversification efforts.
