India’s seafood sector expands beyond US after tariffs, shrimp exports rise 18% in first five months of FY26: Report
A report by CareEdge Ratings highlighted that shrimp exports recorded strong growth in the first five months of FY26, driven primarily by demand from non-US markets including Vietnam, Belgium, China and Russia.
“India’s seafood industry is increasingly expanding its market presence beyond traditional markets such as the US,” he said.
According to the report, shrimp exports increased significantly in 5MFY26, with the total export value reaching US$2.43 billion, up 18% year on year. This growth came along with an 11 per cent increase in shipment volumes reaching 3.48 lakh metric tonnes (LMT). Much of the momentum came from non-U.S. markets, which accounted for 86 percent of the increased export value.
Exports to destinations outside the US rose 30% year-on-year to US$1.38 billion in the first five months of FY26 (5MFY26), compared to US$1.06 billion in the same period last year. This shift reflects the strategic expansion of Indian exporters into newer and previously less accessible global markets.
As a result, the share of non-US markets in total shrimp exports increased from 51 percent in 5MFY25 to 57 percent in 5MFY26. The report also added that the increase in non-US exports has helped ease pressure from the US market, where Indian shrimp has been facing sharply higher tariffs since early FY26. Between April and August 2025, the actual tariff on Indian shrimp shipments to the United States averaged around 18 percent compared to Fiscal Year 2025. 13-14 percent for key rivals Ecuador and Indonesia.
After August, actual customs duties on Indian shrimps increased to approximately 58 percent, while rival countries faced duties of 18-49 percent.
Among destinations outside the United States, China remained the largest buyer, with exports rising 16 percent. Japan, which previously functioned primarily as a reprocessing market, maintained stable levels. Vietnam’s role as a re-export hub was strengthened as exports doubled to US$0.18 billion.
Exports to Belgium also doubled to US$0.14 billion, driven by increased demand from the European Union and stronger compliance with traceability requirements by Indian exporters.
The report stated that export momentum may soften in the second half of FY26 as pressure from the US market continues and fresh orders weaken, but efforts to open access to new markets and increased approvals for Indian units exporting to the EU and Russia are expected to support the sector.
