New Delhi [India], November 24 (ANI): India's seafood sector is gradually expanding its global market reach beyond its traditional dependence on the United States, as exporters diversify to counter the impact of rising tariffs.

Shrimp exports recorded strong growth during the first five months of FY26, supported primarily by demand from non-US markets, including Vietnam, Belgium, China and Russia, a report by CareEdge Ratings highlighted.

It stated 'India's seafood sector is gradually broadening its market presence beyond traditional markets like the USA'.

According to the report, shrimp exports grew significantly in 5MFY26, with the total export value rising 18 per cent year-on-year to USD 2.43 billion. This growth came alongside an 11 per cent increase in shipment volumes, which reached 3.48 lakh metric tonnes (LMT). Much of the momentum was driven by non-US markets, which accounted for 86 per cent of the incremental export value.

Exports to non-US destinations surged 30 per cent year-on-year to USD 1.38 billion during the first five months of FY26 (5MFY26), compared to USD 1.06 billion in the same period last year. The shift reflects a strategic expansion by Indian exporters into newer and previously less accessible global markets.

As a result, the share of non-US markets in total shrimp exports increased from 51 per cent in 5MFY25 to 57 per cent in 5MFY26.

The report also added that a rise in non-US exports has helped cushion the pressure emerging from the US market, where Indian shrimp has faced sharply higher tariffs since early FY26.

Between April and August 2025, the effective tariff on Indian shrimp shipments to the US averaged around 18 per cent, compared with 13-14 per cent for key competitors Ecuador and Indonesia.

Post-August, effective duties on Indian shrimp surged to nearly 58 per cent, while competing nations faced duties between 18-49 per cent.

Among non-US destinations, China remained the largest buyer, with exports rising 16 per cent. Japan, which earlier functioned primarily as a reprocessing market, maintained stable levels. Vietnam's role as a re-export hub strengthened, as exports doubled to USD 0.18 billion.

Exports to Belgium also doubled to USD 0.14 billion, driven by improved demand from the European Union and stronger compliance with traceability requirements by Indian exporters.

The report noted that while export momentum may soften in the second half of FY26 due to continued pressure from the US market and weaker fresh orders, efforts to open access to new markets and increased approvals for Indian units exporting to the EU and Russia are expected to support the industry. (ANI)