India’s Shrimp Exports Thrive in Non-US Markets Amid Rising Tariffs in America
India’s shrimp export sector has experienced significant growth in the first five months of the fiscal year 2026, with earnings reaching $2.43 billion, marking an 18% increase compared to the previous year. This surge is accompanied by a rise in shipment volumes, which reached 348,000 metric tonnes, reflecting an 11% year-on-year growth. Notably, the expansion is largely attributed to markets outside the United States, where export values soared to $1.38 billion from $1.06 billion. As India diversifies its shrimp trade, non-US markets now account for a growing share of overall shipments, indicating a shift in the country’s seafood export strategy.
Growth in Non-US Markets
The latest report from CareEdge Ratings highlights a notable shift in India’s shrimp export dynamics. Non-US destinations have increased their share of India’s shrimp shipments from 51% in the first five months of FY25 to 57% in the same period this year. Key markets such as Vietnam, Belgium, China, and Russia have collectively contributed to 86% of the additional export gains. This trend underscores the efforts of Indian exporters to broaden their global reach and reduce reliance on the traditional US market. While shipments to the US did see a modest improvement of about 5% during the April to August 2025 period, the overall strategy appears to be focused on diversifying export destinations.
Challenges from Increased Tariffs
Despite the positive growth figures, Indian shrimp exporters are facing challenges due to increased tariffs imposed by the US. Since the beginning of FY26, exporters have encountered steeper duties, including reciprocal charges on top of existing anti-dumping and countervailing levies. CareEdge Ratings reported that the effective tariff rate for Indian shrimp exports to the US stood at 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 continue to face lower tariffs ranging from 18% to 49%. This situation has diminished India’s price competitiveness in the US market, potentially benefiting its competitors.
Future Projections and Market Dynamics
Looking ahead, CareEdge Ratings anticipates a moderation in India’s shrimp export performance, projecting a decline of 10-12% due to ongoing tariff pressures from the US. The report indicates that while early shipments may have provided a temporary boost, the overall trend suggests a potential slowdown in the coming months. Exports in August were already reported to be 35% lower than in July, raising concerns about sustained demand. However, China remains India’s largest non-US buyer, with shipments increasing by 16%. Additionally, Vietnam’s import value has doubled to $180 million, highlighting its emerging role as a re-export hub, while Belgium also saw its imports from India double to $140 million, driven by strengthening demand in the European Union.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
