India’s shrimp industry – one of the country’s most globally competitive export sectors – stands at a defining crossroads today.
ndia’s shrimp industry – one of the country’s most globally competitive export sectors – stands at a defining crossroads today. For years, the United States served as its top and most lucrative export destination, especially for frozen shrimp under HS Code 030617. However, this dependence turned into a vulnerability in August 2025 when the U.S. sharply increased tariffs on Indian shrimp, triggering significant trade distortions that rippled across India’s coastal economy. The cumulative duty rose to an unprecedented 58.26 per cent – combining 5.77 per cent countervailing duty, 2.49 per cent anti-dumping duty, a 25 per cent reciprocal tariff, and an additional 25 per cent penalty tariff linked to India’s Russian energy purchases.
As the U.S. accounted for over 37 per cent of India’s shrimp shipments in 2024, the shock was severe: exporters lost competitiveness overnight, and farm-gate prices crashed by 8-20 per cent. Andhra Pradesh, being the epicentre of shrimp production and export,has been severely affected, followed by Bengal, another crucial production centre, which produces nearly 70,000 tonnes of shrimp every year, 85 per cent of which is exported, earningapproximately Rs 8,000 crore annually from the export of frozen shrimp, with nearly 80 per cent of the revenue coming from the US. These tariff shocks severely shook these shrimp markets. The episode exposed how dangerously over-concentrated India’s shrimp export basket had become, and how a single policy intervention by a dominant partner could destabilise an otherwise high-growth sector.
Recognising the gravity of the crisis, the Government of India moved swiftly to restore stability and create a more “level playing field” for producers. The Export Promotion Mission (2025-2031) places certification and compliance at the centre of India’s long-term shrimp strategy. The government is expanding credit support to help farmers and processors upgrade facilities to meet ASC and BAP requirements – standards that are now essential for entry into high-value markets. Investments in modern testing labs, stronger residue monitoring, and digital traceability systems are aimed at guaranteeing antibiotic-free, fully trackable supply chains that can withstand rigorous EU checks, as India is gearing up to expand its seafood exports, particularly shrimp, to Russia, the European Union (EU), and Australia, offering much-needed relief to domestic fisheries struggling under steep US tariff. Upgrading processing plants to global benchmarks ensures consistency, food safety, and smoother clearance in Europe, where compliance failures often result in shipment rejections and market losses.
By strengthening farm biosecurity, enforcing tighter quality controls, and promoting transparent sourcing, these measures help India shift from volume-driven exports to premium, certified products. Additionally, policymakers should need to recognise the need to support other shrimp categories beyond HS 030617 – such as HS 030616, 030635, and 030636 – which currently contribute a minimal share to exports but hold untapped potential and can reduce market concentration risks if strengthened. As India recalibrates its export strategy, global trade patterns offer promising avenues for diversification. Non-U.S. markets have already increased their share from 51 per cent in 5MFY25 to 57 per cent in the same period this year – a significant shift shaped by demand from China, Vietnam, Japan, the EU, the UK, Russia, South Africa, and the Middle East.
China, now India’s second-largest market, shows consistently strong demand for frozen shrimp and has become a stabilising anchor amid U.S. volatility. Japan and South Korea offer premium, stable markets, although they require stringent adherence to quality standards and competition from Vietnam. The European Union and the United Kingdom present a renewed opportunity, especially as India advances trade negotiations that could reduce tariff disadvantages. Russia offers especially attractive openings with tariffs around 3 per cent and a history of high Indian market share. Vietnam serves as a major re-export hub, with Indian shipments doubling for processing and onward sale. Several African nations – notably South Africa – have also emerged as new demand centres, though purchasing power fluctuations require careful market development.
These markets favour value-added items such as breaded, ready-to-cook, seasoned, and vacuum freeze-dried shrimp, offering India an opportunity to diversify its product mix rather than relying predominantly on bulk frozen varieties. Therefore, it is high time to focus on building structural resilience rather than responding reactively to external shocks. India needs a three-pronged long-term strategy: diversify both export destinations and product profiles; scale up certifications, digital traceability, and biosecurity to meet the high-compliance requirements of key markets; and develop value-added processing capabilities to move up the global seafood value chain.
Strengthening production and exports under other HS codes-030616, 030635, and 030636 – will distribute risk and unlock new market opportunities. Finally, aligning aquaculture policies with sustainability, disease management, and global regulatory expectations will ensure a stable supply and higher farmer incomes. The recent turbulence in the U.S. market is a reminder that India’s shrimp success story cannot rest on a single pillar. With strategic policy support, diversified markets, and upgraded capabilities, the sector can not only recover but also emerge stronger, more competitive, and more globally integrated in the years ahead.
The writers are, respectively, a Research Associate and Professor at the National Council of Applied Economic Research. Views expressed here are personal.
