(MENAFN- Live Mint) India's seafood sector is strategically expanding its global market reach, reducing its traditional reliance on the United States by diversifying exports to offset rising tariffs under the Trump administration.

Shrimp exports grew strongly in the first five months of fiscal year 2026, supported by robust demand from non-US destinations, including Vietnam, Belgium, China and Russia, according to CareEdge Ratings. Export value rose 18% year-on-year to $2.43 billion, driven by a 11% increase in shipment volumes to 3.48 lakh metric tonnes (LMT).

The report said that“India's seafood sector is gradually broadening its market presence beyond traditional markets like the USA,” ANI reported.

Non-US markets account for bulk of growth

Non-US markets accounted for a significant 86% of the incremental export value, with shipments to these destinations surging 30% year-on-year to $1.38 billion during the first five months of FY26 (5MFY26), up from $1.06 billion a year earlier. Their share in total shrimp exports increased from 51% in 5MFY25 to 57% in 5MFY26.

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This strategic expansion by Indian exporters into newer and previously less accessible global markets has helped cushion the pressure emerging from the challenging US market.

US tariffs and competitive disadvantage

Indian shrimp exports to the US have faced sharply higher tariffs since the early part of FY26, averaging around 18% between April and August 2025, compared to 13%-14% for competitors like Ecuador and Indonesia.

After August, effective duties on Indian shrimp surged to nearly 58%, while competing nations faced tariffs between 18-49%.

Key non-US markets and their role in India's growth

Several non-US destinations have shown notable increases in demand for Indian seafood.

- China remained the largest buyer, with exports rising 16%.

- Japan, which earlier functioned as a reprocessing market, maintained stable export levels.

- Vietnam strengthened its role as a re-export hub, with exports doubling to $0.18 billion.

- Belgium exports also doubled to $0.14 billion, driven by better demand from the European Union and stronger compliance with traceability requirements by Indian exporters.

Outlook for the sector

CareEdge warned that momentum may soften in the second half of FY26 due to US market pressures and weaker fresh orders.

However, the industry is expected to find support through efforts to open access to new markets and increased approvals for Indian units exporting to the EU and Russia, ANI reported.

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