Indian Shrimp Exports Pivot to China
The United States recently imposed a 50% tariff on Indian goods, including shrimp, making Indian exports far less competitive in the U.S. market. This has prompted Indian shrimp exporters to seek alternate destinations to sustain their trade.
China Emerges as New Destination
Exporters are now turning to China, which is increasingly seen as a promising buyer. Chinese importers, backed by strong domestic demand and processing capacities, have begun offering forward contracts to Indian suppliers. China, previously the second-largest importer after the U.S., is gaining importance.
Export Strategy Shifts
Indian exporters are also exploring markets in Europe, Japan, South Korea, and the Middle East. Those with existing U.S. contracts are negotiating to share the burden of the tariff or shifting volumes abroad. At home, firms are pushing to increase domestic sales in metropolitan centers.
Export Data and Projections
India’s marine exports for FY25 reached around $7.39 billion, with $2.68 billion going to the U.S. before the tariff imposition. Due to the tariff, the U.S. share is expected to shrink significantly. The shift toward new markets may help cushion the impact.
Challenges and Outlook
While China offers potential, it’s not a perfect substitute. Quality standards, logistics, and trade terms differ. Exporters must adapt production, certification, and supply chains. The coming months will test whether India can reorient its shrimp trade without substantial loss.
