India’s Shrimp Exports Rise 18% as Exporters Pivot to Non-US Markets Amid Steep US Tariffs 🦐

Vietnam, Belgium, China and Russia drive growth; US-bound shipments face 58% duty after August

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India’s shrimp exports recorded strong growth in the first five months of FY26, despite mounting tariff pressures in the United States — historically the country’s anchor market. According to a new report by CareEdge Ratings, shrimp export value rose 18% year-on-year to $2.43 billion, with shipment volumes up 11% to 3.48 lakh metric tonnes (LMT).

Non-US Markets Drive Momentum

The boom was led by a decisive expansion into non-US markets, where export value surged 30% (to $1.38 billion from $1.06 billion). As a result, the share of exports going to these regions rose from 51% in 5M FY25 to 57% in 5M FY26 — highlighting a strong diversification push.

CareEdge said 86% of the incremental export value came from markets such as:

• Vietnam
• Belgium
• China
• Russia
• and other emerging destinations

This shift reflects India’s strategic efforts to broaden its footprint beyond traditional buyers.

US Tariff Shock Hits Competitiveness

In contrast, exports to the US grew only 5% during the same period, in line with expectations. The US market slowed sharply in August 2025, following heavy front-loading of shipments earlier in the year to avoid higher reciprocal tariffs that took effect on August 27, 2025.

Key developments:

• Between April–August 2025, India’s effective tariff rate stood at 18%, compared with 13–14% for Ecuador and Indonesia.
• Post-August, effective duty on Indian shrimp spiked to 58%, while competitors faced only 18–49%.
• The duty hike significantly weakened India’s price competitiveness in US retail and food service channels.

Exports to the US had peaked unusually early at $0.27 billion in May 2025, exceeding last year's monthly average. But by August 2025, shipments dropped 35% from July levels.

China Leads Non-US Growth; Vietnam and Belgium Double

Among non-US buyers:

• China, India’s largest non-US market, posted 16% growth
• Vietnam doubled its import value to $0.18 billion, underscoring its expanding role as a re-export hub
• Belgium also doubled imports to $0.14 billion, driven by strong EU demand and improved traceability compliance by Indian exporters
• Japan remained stable despite its historic role as a reprocessing centre

Export Outlook: Near-Term Pressure, Long-Term Diversification

CareEdge expects a 10–12% moderation in India’s shrimp export performance for the full year due to sustained tariff headwinds from the US. While holiday-season demand may prompt US buyers to absorb some tariff costs temporarily, fresh order volumes are expected to stay subdued for the rest of FY26.

“Diversification into new geographies and early-year front-loading will cushion some of the impact, but sustained US tariff pressure could weigh on momentum in Q4,” said Ratheesh Kumar, Associate Director at CareEdge Ratings.