How Indian seafood exports turned the tide after US tariffs

Despite 50 per cent American tariffs, Indian seafood exports increased by 11.6 per cent year-on-year between April and October, according to data from the Ministry of Commerce and Industry.

US President Donald Trump has slapped 50 per cent tariffs on India — making the country the most tariffed in the world. These tariffs started coming into effect in August. From the onset, seafood exports —particularly shrimps— were supposed to be the most affected.

But it now appears that Indian exporters have weathered the storm so far.

India seeks new export markets make-up for loss of US market

The key to weathering the storm has been to replace the traditional market of the United States with newer markets of the European Union (EU), the United Kingdom (UK), Russia, China, and Vietnam.

As a result of export diversification, the seafood revenue in the period rose to $4.69 billion from $4.2 billion from a year ago, according to The Economic Times.

As Firstpost’s Madhur Sharma previously reported, well before Trump’s tariffs kicked in, India had been engaged in trade talks with South American nations like Peru and Chile; the EU; and the Eurasian Economic Union (EEU), and struck deals with the UK and the European Free Trade Association (EFTA) as part of efforts to find new export destination for goods affected by tariffs.

India also sought to explore export opportunities in Russia and use the improved relationship with China to its advantage.

US out, EU in: India’s new export strategy

After Trump made Indian goods unattractive, India found a better trading partner in the EU.

India’s overall seafood exports to EU rose 40 per cent in the April-October period and export of shrimps —the most vulnerable exported good— rose 57 per cent, according to ET.

The driving force behind the surge is the EU’s inclusion of 102 fishery units in its list of importable items. Similarly, exports to Russia grew after the country added 29 Indian fishery units to its list.

As Firstpost’s Madhur Sharma previously reported, the immediate concern after tariffs were imposed was for sectors like seafood, primarily shrimps, and textiles.

It was not just about facts and figures but about the livelihood of people, Ram Singh, a professor of international trade at Indian Institute of Foreign Trade (IIFT), Delhi.

“Shrimp producers are at the bottom of the socioeconomic pyramid. Around half of all Indian shrimps are exported to the United States. While consumption growth can balance the GDP growth numbers and new markets may be found for other exports, shrimp producers are neither going to benefit from domestic consumption growth nor they can wait for long-term solutions. For them, immediate support is needed in the form of a financial support package,” Singh told Sharma in August.