Changing Export Landscape for Indian Shrimp & Seafood: Shifting Focus to Domestic Markets

The global seafood trade has been experiencing turbulence, especially with the U.S.-China trade war and former President Trump’s “America First” policy reshaping international commerce. Increased tariffs, stringent quality regulations, and unpredictable trade policies have led to uncertainty for Indian shrimp and seafood exporters, making overseas markets more volatile and less profitable.

Historically, the U.S. and EU have been key destinations for Indian seafood, particularly shrimp. However, rising import duties and increased competition from Latin American producers have squeezed margins for Indian exporters. Additionally, growing protectionism and shifting consumer preferences in major global markets add further challenges.

A Booming Domestic Market: The New Growth Avenue

While international trade remains uncertain, India’s domestic seafood market is emerging as a lucrative alternative. Several factors contribute to this shift:

• A Rising Middle Class & Young Population: Increasing disposable income and a preference for protein-rich diets are driving seafood consumption.
• Public Investment in Market Infrastructure: Government initiatives to modernize fisheries, cold storage, and distribution networks are improving supply chain efficiency.
• E-commerce & Retail Expansion: Digital platforms are making seafood more accessible, ensuring fresh, safe, and high-quality products reach consumers at competitive prices.

For farmers, traders, and e-commerce players, this shift presents a golden opportunity. By catering to the growing domestic demand, they can reduce dependence on exports, mitigate risks associated with global market fluctuations, and strengthen India’s seafood supply chain.

As India prioritizes food safety, sustainable aquaculture, and affordability, the domestic seafood sector is set for remarkable growth. For industry players, now is the time to embrace local markets and capitalize on India’s evolving seafood consumption trends.