Through strategic market diversification, regulatory diplomacy and domestic innovation, India not only weathered the storm but recorded record exports in FY26. Today, the government is considering a production-linked incentive (PLI) scheme for the sector, acknowledging its potential in driving India’s export ambitions amid shifting global supply chains.
Also Read: Govt to explore possibility of PLI scheme for seafood MSMEs
The tariff shock
Last year, the US, India’s single-largest seafood market, imposed a cumulative 50% tariff, first citing trade imbalance and anti-dumping concerns, then linking it to India’s energy purchases from Russia. The sector felt the blow acutely. Andhra Pradesh, which accounts for nearly 80% of India’s shrimp exports and typically ships 70% of its output to the US, faced drastic disruptions. Several processing units were forced to suspend operations as exporters struggled with the sudden escalation in trade costs.
In 2024-25, India’s seafood exports totaled 1.7 million tonnes worth Rs 62,408 crore ($7.45 billion), with the US alone absorbing $2.71 billion, over a third of total exports. The tariffs threatened to destabilise an industry whose margins were already thin. Exporters faced cancelled orders, shrinking profits and the real risk of long-term dependency on a single market being painfully exposed.
Domestic interventions
Seeing the immediate threat, the government and industry quickly adopted measures to cushion the impact. Under the National Fisheries Development Board, a dedicated committee was formed to stimulate domestic consumption. Farmers and entrepreneurs introduced innovations such as transporting live shrimp without water and establishing experience centers to promote domestic awareness. While the domestic market could not replace the vast US demand overnight, these measures provided crucial relief and laid the groundwork for longer-term stability.
This approach also reflected a broader strategy of reducing reliance on a single, unpredictable market by fostering resilience at the local level. It marked a shift from reactive crisis management to proactive market development.
Export diversification and strategic diplomacy
The sector’s most dramatic response came in the form of aggressive market diversification. Alternative destinations were pursued systematically, leveraging both historical trade ties and emerging opportunities. A major breakthrough was Australia, which in October 2025 lifted an eight-year ban on unpeeled prawns from Andhra Pradesh following the detection of white spot virus in 2017. Australian and New Zealand importers had been lobbying for Indian seafood, making this reopening an immediate revenue lifeline.
At the same time, the government focused on reestablishing access to the European Union (EU), long a high-value market. Nearly a decade of restrictions due to quality concerns had limited Indian exports, but through targeted interventions and regulatory compliance, 102 Indian fisheries were restored to the EU list by early 2026. Commerce Minister Piyush Goyal highlighted that these efforts not only mitigated the impact of US tariffs but secured long-term trade opportunities critical to India’s export strategy.
Russia also emerged as an important frontier, with 25 Indian fisheries nearing approval and over 65 non-tariff barriers being addressed to facilitate smoother trade. This realignment diversified risk across multiple high-demand markets, reducing vulnerability to shocks in any single region.
When crisis turned into a growth opportunity
Remarkably, these combined efforts bore tangible results. In FY26, India’s seafood exports rose 11.2% year-on-year to a record $8.28 billion, with total volumes reaching 19.32 lakh metric tonnes. Frozen shrimp, the backbone of the sector, contributed $5.51 billion, over two-thirds of the total. Expectedly, exports to the US fell 14.15% in value and 19.8% in volume, and this decline was offset by strong growth in alternative markets.
China, India’s second-largest destination, absorbed shipments rising 22.7% in value and 20.1% in volume. The EU recorded even sharper gains where exports grew 37.9% in value and 35.2% in volume, accounting for $1.59 billion or 18.94% of total exports. Southeast Asia and Japan also contributed significantly, while West Asia saw a minor contraction due to geopolitical disruptions. On the product side, frozen fish, squid, cuttlefish, dried items, and live products performed well, while chilled products lagged.
Logistically, five ports — Visakhapatnam, JNPT, Kochi, Kolkata, and Chennai — handled nearly 64% of the total export value, underlining the continued importance of established infrastructure. The recovery demonstrated that strategic diversification, regulatory engagement and domestic support could collectively transform a crisis into a growth opportunity.
Gaining regulatory credibility and international trust
Securing international markets was not just about diplomacy but also about meeting stringent regulatory standards. The EU’s recent inclusion of India in its revised draft list for continued export of aquaculture products is a significant validation. India’s compliance with the European Commission Delegated Regulation on antimicrobial use and residue monitoring demonstrated its adherence to global food safety norms.
The government’s proactive approach, through agencies like the Marine Products Export Development Authority and Export Inspection Council, strengthened quality assurance, traceability and disease-free zones. Programmes such as the National Residue Control Programme, post-harvest testing and stakeholder awareness campaigns have raised confidence in Indian seafood products.
This regulatory credibility has tangible commercial impact beyond sustaining existing trade. It opens doors to value-added products, higher margins and new entrants to the export sector.
A new export champion is emerging
The government has not limited itself to crisis management but has been systematically promoting the sector. The recent discussions for a PLI scheme for seafood MSMEs indicate a willingness to invest in future growth. The proposed PLI framework aims to increase value-added exports, expand the number of exporters from 1,200 to 5,000, and promote sustainable harvesting, processing, and branding.
Efforts will focus on high-value marine products such as tuna and premium shrimp, while also exploring possibilities like geographical indication (GI) tagging to enhance brand recognition abroad. The PLI scheme will also address infrastructure gaps across states, improve compliance with sanitary standards and strengthen traceability from primary production onwards. These interventions are designed to increase export volumes as well as to enhance competitiveness in global markets, showing long-term commitment from the government.
The trajectory of India’s seafood exports over the past year offers several insights. Over-reliance on a single market can be perilous and strategic diversification is not optional but essential. Regulatory compliance and international trust are as critical as production capacity. And, domestic market development, though slower to yield revenue, provides a stabilising buffer.
The sector’s ability to expand exports by over $800 million despite significant market disruption points at its resilience and adaptability. The government’s consideration of a PLI scheme recognises this potential. By focusing on value addition, expanding the exporter base and strengthening international credibility, India is laying the foundation for the seafood sector to become an export champion. The PLI and other measures can propel India’s seafood exports into a decade of sustained growth, creating employment, enhancing rural incomes and reinforcing India’s stature in the global marine products market.