Indian shrimp exporters are increasingly turning to China as a vital new market following the US decision to impose a prohibitive 50% tariff on their shipments. This tariff has made it difficult for Indian shrimp to compete with exports from Ecuador, Vietnam, and Indonesia in the US market. China, with its strong domestic demand and established seafood processing capabilities, has emerged as a promising destination, with buyers actively engaging in forward contracts.
Industry officials are viewing this shift as a potential “blessing in disguise”. Previously the second-largest importer of Indian shrimp, China is now likely to become the top importer. This is partly due to China’s strength in seafood processing and re-exports, as Chinese firms procure raw material from India for re-export to duty-free markets. To mitigate the impact of the US tariffs, Indian exporters are also expanding their reach to other Asian markets and are negotiating with US buyers to share the tariff cost.
In addition to seeking new export destinations, Indian shrimp exporters are also tapping into the growing domestic market in major cities like Delhi, Bengaluru, and Hyderabad. According to trade data from the commerce ministry, India’s marine product exports were worth $7.39 billion in fiscal year 2025, with $2.68 billion going to the US. Despite the challenges in the US market, exports of marine products, including shrimp, still rose by 18% year-on-year to $2.60 billion during April-July of the current year.