India Seafood Export Growth

India Seafood Export Growth

Why in the News?

  • India Seafood Export Growth has drawn attention after official data showed a sharp rise in marine product exports during the first seven months of FY 2025–26.
  • India’s seafood exports increased by 16 percent in value and 12 percent in volume between April and October 2025 compared to the same period in the previous financial year.
  • The growth occurred despite higher tariffs imposed by the United States, indicating improved resilience and diversification of India’s export strategy.
  • Policymakers and export bodies have described this performance as a sign of structural strength and adaptability in India’s fisheries sector.

Background → India’s Seafood Sector

  • India has one of the largest and most diverse seafood sectors in the world, supported by:
    • A coastline of over 7,500 kilometres
    • Extensive inland water resources such as rivers, reservoirs, ponds, and wetlands
  • India is the third-largest fish producer globally and the second-largest producer of aquaculture products.
  • The sector plays a vital role in:
    • Employment generation, especially in coastal and rural areas
    • Foreign exchange earnings
    • Nutritional security, by providing affordable animal protein
  • Over the past decade, India has seen a shift from capture fisheries to culture fisheries, with aquaculture emerging as the backbone of export growth.

Scale and Market Trends of India Seafood Export Growth

  • India’s seafood export earnings rose from $4.19 billion to $4.87 billion during April–October 2025.
  • Export volumes increased from 9.62 lakh metric tonnes to 10.73 lakh metric tonnes in the same period.
  • Shrimp, particularly frozen varieties such as Vannamei, continues to dominate export value and volume.
  • Other major export products include:
    • Frozen fish
    • Cuttlefish and squid
    • Crabs and other value-added marine products
  • Although exports to the United States declined slightly, it remains India’s largest single export destination.

Drivers Behind India Seafood Export Growth

  • Rising Global Demand
    • Global consumers are increasingly preferring protein-rich and low-fat diets, boosting seafood demand.
    • Strong demand persists in the United States, European Union, Japan, China, and Southeast Asia.
  • Market Diversification Strategy
    • Exporters have reduced dependence on a single market by expanding into China, Vietnam, Belgium, Malaysia, and Germany.
    • Vietnam recorded over 100 percent growth in export value, while Belgium saw nearly 90 percent growth, reflecting successful diversification.
    • This eastward and European pivot has reduced vulnerability to tariff shocks.
  • Government Policy and Institutional Support
    • The Pradhan Mantri Matsya Sampada Yojana (PMMSY) has strengthened fisheries infrastructure through:
      • Modern fishing harbours
      • Cold-chain logistics
      • Processing and storage facilities
    • The Marine Products Export Development Authority (MPEDA) supports exporters through quality control, traceability systems, and market access initiatives.
  • Improved Quality and Compliance
    • Indian exporters have increasingly complied with international food safety standards.
    • Enhanced traceability systems have helped meet sanitary and phytosanitary norms of importing countries.
  • Expansion of Aquaculture
    • Shrimp farming, especially in coastal states, has expanded rapidly.
    • This shift has reduced pressure on marine ecosystems while ensuring stable export supplies.

Economic Importance and Blue Economy Linkages

  • Seafood exports contribute significantly to foreign exchange earnings, helping improve India’s trade balance.
  • The fisheries sector supports millions of livelihoods, making it second only to agriculture in employment generation.
  • Fisheries are central to India’s Blue Economy vision, which seeks to balance:
    • Economic growth
    • Environmental sustainability
    • Livelihood security
  • The sector also strengthens food and nutritional security, particularly in low-income regions.

Challenges and the Way Forward

  • A relatively small share of seafood undergoes value addition, limiting export profitability.
  • High tariffs in the United States and stringent quality norms in Europe remain barriers.
  • Overfishing, habitat degradation, and climate change threaten long-term sustainability.
  • Gaps persist in cold-chain infrastructure, logistics, and modern processing capacity.
  • Going forward, India’s seafood sector must focus on:
    • Greater value addition
    • Eco-friendly aquaculture
    • Continued market diversification
    • .Stronger infrastructure and policy coordination

→ External source linked contextually from The Indian Express; related governance and economy content can be explored on UPSCWorld.

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