India exported nearly US$ 5.8 billion worth of food and beverage products to the US in 2024, with shrimp and prawn accounting for a major share. However, the US’s recent imposition of a 27% reciprocal tariff on Indian seafood threatens India’s dominance in this segment. As competitors like Ecuador and Indonesia face lower tariffs, they gain a pricing edge in the US market.
This shift highlights the urgent need for India to diversify its seafood exports to other top importers like China, Japan, Spain, and France, where its market share remains low. With the US citing tariff imbalances, India must defend its strongholds while expanding into new markets to build a more resilient and balanced agri-export strategy.
Seafood exports have long served as an important part of India’s agricultural trade with the United States, particularly within the food and beverage segment. In 2024, the US imported food and beverage (F&B) products worth nearly US$ 5.8 billion from India—a category that has grown at a steady 5-year CAGR of 3%. Among these, seafood—both prepared and unprepared—dominates the basket, making up around 40% of all such imports, with shrimp and prawn driving this growth.
Shrimp and prawn are a defining element of bilateral agri-trade between India and the US, supporting rural livelihoods and coastal economies. However, recent shifts in the trade policies by the Trump administration—pose significant challenges for India’s continued dominance in this segment.
In 2024, the top five exporters of shrimp and prawn to the United States were India, Ecuador, Indonesia, Vietnam, and Thailand accounting for 92% of shrimp and prawn exports to the US. India led the pack with exports worth US$ 2.35 billion, accounting for over 37% of total US imports in this category. Ecuador followed with a 21.1% share, while Indonesia contributed 17.2%. Vietnam and Thailand rounded out the list with 11.5% and 4.9% shares, respectively. These five countries collectively supplied more than 92% of all shrimp and prawn imported into the US, underscoring their dominance in meeting American seafood demand.
Table 1: Major Exporters of Shrimp and Prawn to the US (2024)
| Rank | Country | Exports to the US (US$ Mn) | Share in US Shrimp & Prawn Imports (%) | Reciprocal Tariff Rate (%) |
|---|---|---|---|---|
| – | World Total | 6,289 | 100 | – |
| 1 | India | 2,352 | 37.41 | 27 |
| 2 | Ecuador | 1,329 | 21.14 | 10 |
| 3 | Indonesia | 1,080 | 17.19 | 32 |
| 4 | Vietnam | 721 | 11.47 | 46 |
| 5 | Thailand | 309 | 4.92 | 36 |
Source: ITC Trade Map
While India was the top supplier of shrimp and prawns in 2024, the imposition of a 27% reciprocal tariff on Indian seafood products significantly alters the competitive landscape. Exporters from countries like Ecuador and Indonesia, who face much lower tariff rates, are likely to benefit from a price advantage in the US market.
As India’s cost competitiveness in the US market gets increasingly challenged by steep reciprocal tariffs, the need to diversify export destinations becomes urgent. The US remains the largest importer of shrimp and prawn globally, but markets like China, Japan, and key European economies—such as Spain, France, and Germany—also represent substantial demand. Although India has a strong presence in the US, its share in other major markets like China, Japan, and Europe is still relatively small. Tapping into these underutilized yet significant markets can help cushion the impact of rising trade barriers and build a more balanced, resilient export portfolio for India’s seafood sector.
Table 2: Top Global Importers of Shrimp and Prawn (2023)
| Rank | Importer | Import Value (US$ Mn) | India’s Share (%) |
|---|---|---|---|
| – | World | 24,900.10 | – |
| 1 | United States of America | 6,616.20 | 35% |
| 2 | China | 5,386.10 | 14% |
| 3 | Japan | 1,805.90 | 15% |
| 4 | Spain | 1,190.40 | 1% |
| 5 | France | 874.30 | 7% |
| 6 | United Kingdom | 696.90 | 16% |
| 7 | South Korea | 661.80 | 5% |
| 8 | Italy | 641.00 | 5% |
| 9 | Germany | 631.30 | 9% |
| 10 | Netherlands | 553.40 | 14% |
Source: ITC Trade Map
Given India’s heavy reliance on the US for shrimp and prawn exports, strategic diversification is essential. Countries like Spain, France, South Korea, Italy, and Germany are major importers but remain underpenetrated by Indian exporters. Expanding into these markets—through trade engagement and compliance readiness—can mitigate tariff risks and strengthen export resilience. At the same time, deepening ties in existing strongholds like China, Japan, the UK, and Canada could help India scale volumes and build a more balanced global footprint.
Beyond seafood: The larger agri-export picture
While shrimp and prawn have dominated the recent headlines, they are only part of a broader export portfolio that includes staples like basmati rice and a variety of spices—chilli, coriander, and curry powders among them. These products, often buoyed by relatively inelastic demand, have so far remained somewhat shielded from immediate shocks. But even they are beginning to feel the tremors of global trade tensions.
Take basmati rice, for example- India exported 0.3 million tons of it to the US in FY24, valued at US$ 304 million. Exporters are now voicing concern that the convergence of Red Sea disruptions, rising geopolitical strains between Iran and the US, and the newly imposed 27% tariff could erode India’s competitiveness—pushing American importers to consider alternate suppliers.
As noted by ICRIER, India imposes significantly higher tariffs than the US, especially in agriculture, where the simple average rate stands at 39% and the trade-weighted average at 65%. The US appears to be using reciprocal tariffs as a tool to address this disparity.
Amid this shifting trade environment, India must actively safeguard its foothold in key markets like the US while also accelerating efforts to tap into new destinations for its agri-exports. Shrimp and prawn may be leading the conversation, but they also offer a clear indicator of how swiftly and effectively India can adapt its agricultural trade strategy in the face of growing protectionism and changing global trade norms.
