Indian Shrimp Exports to China Boom Amid US Tariff Shock

India’s seafood industry is undergoing a dramatic realignment, with Indian shrimp exports to China emerging as the sector’s new lifeline after the United States raised steep tariffs on shipments from the South Asian nation.

US President Donald Trump’s decision to impose a 50% duty on Indian shrimp has created a prohibitive barrier, effectively pricing India out of its largest market and handing competitive advantage to Ecuador, Vietnam, and Indonesia. In response, Indian exporters are pivoting to China, where strong domestic demand and forward contracts have transformed it into one of the most lucrative alternatives.

Indian Shrimp Exports: China Steps Up as the New Growth Engine

Chinese buyers, backed by the country’s formidable seafood processing and re-export industry, have moved swiftly to secure supply. With forward contracts providing exporters price certainty, industry insiders say China is poised to replace the US as India’s top shrimp importer.

“The tariff shock has turned out to be a blessing in disguise for Indian shrimp exporters. China, once a secondary market, is now becoming the primary growth driver,” said Shaji Baby John, chairman and managing director of Kings Infra Ventures Ltd., a Kerala-based exporter.

China’s strength lies not only in direct consumption but also in re-exports. Processors there procure raw material from India, refine it, and ship to duty-free markets across the globe—giving Indian producers indirect access to destinations that might otherwise remain cost-prohibitive.

Exporters Diversify Beyond China

While Indian shrimp exports to China are booming, industry players are simultaneously widening their reach. Europe, the UAE, Japan, South Korea, and even Russia are being targeted to mitigate the impact of lost US volumes.

Some exporters locked into US contracts are renegotiating terms to share tariff burdens with buyers. Others are tapping domestic demand in urban hubs such as Delhi-NCR, Bengaluru, Hyderabad, and Coimbatore, where seafood consumption is steadily rising.

Indian Shrimp Exports: Shrimp Export Data Highlights

• In FY25, India exported marine products worth $7.39 billion, of which the US accounted for $2.68 billion (36%).

• Shipments to the US fell sharply in FY26, with shrimp exports dropping 43.8% between May and August.

• Vannamei shrimp, India’s largest export variety, plunged 52.2%, hitting employment in coastal clusters.

• Meanwhile, overall marine product exports rose 18% year-on-year to $2.60 billion between April and July FY26, underscoring resilience despite headwinds.

EU, UAE and Russia Offer New Hope

According to K.N. Raghavan, secretary general of the Seafood Exporters Association of India, the European Union has recently approved 102 new Indian processing plants, significantly boosting market access. With the EU already the third-largest buyer after the US and China, this clearance comes at a critical time.

“The EU’s move strengthens India’s position. At the same time, the UK’s FTA talks and Russia’s growing seafood demand present major opportunities,” Raghavan noted.

In parallel, the commerce ministry is working on fast-tracking access to trusted trade partners. Singapore has signaled willingness to expand imports of Indian farm goods, including seafood, while the UAE is being developed as a regional hub for both seafood and textiles.

India’s Edge: Value-Added Shrimp

While Ecuador continues to dominate global shrimp volumes, analysts highlight India’s strength in value-added shrimp exports—a key differentiator in premium markets. InCred Equities noted that with plant approvals now lifted in Europe, Indian exporters must focus on reducing both tariff and non-tariff barriers to unlock full potential.

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