India’s shrimp export industry, which relies heavily on the U.S. market, is seeking to diversify its export destinations to mitigate risks associated with overdependence on a single market. This comes as the industry expresses relief following U.S. President Donald Trump’s decision to revert to a baseline 10% tariff and implement a 90-day pause on higher reciprocal tariffs.
To reduce dependence on exports, shrimp farmers are advocating for a government-led campaign to promote domestic shrimp consumption. Exporters, on the other hand, are planning to increase the production of high-end value-added shrimp products to capture a share of the U.S. market from China, which faces a 145% tariff on its American exports.
The shrimp industry is also urging the government to expedite free trade agreement negotiations with Europe, considered a lucrative market. In 2023-24, seafood exports reached $7.38 billion, with frozen shrimp constituting a significant portion. The U.S. is the largest importer of Indian shrimp, accounting for a substantial share of both volume and value.