EU, Vietnam push Indian seafood exports to record amid shift away from US

New Delhi: India has rapidly diversified its labour-intensive seafood exports after the US imposed punitive tariffs last year, with Vietnam, the European Union (EU), China, Russia, and Japan emerging as major growth drivers in 2025–26 (FY26).

The diversification push also propelled India’s seafood exports to a record $8.28 billion in 2025–26, as strong growth in shipments to Vietnam and the EU outweighed a decline in exports to the US.

The shift comes as Indian seafood exporters increasingly reduce dependence on the US, traditionally the country’s largest marine products market, amid reciprocal tariff pressures, weaker consumer demand and supply-chain disruptions.

Latest government data show Vietnam has emerged as the fastest-growing destination for Indian seafood exports, with shipments surging 69.5% year-on-year to $656.84 million in 2025–26.

The exponential growth is due to Vietnam increasingly serving both as a high-growth consumption market and a processing hub for re-exports, particularly for shrimp and value-added marine products.

The EU also recorded strong growth, with imports of Indian seafood rising 41.4% to $1.59 billion from $1.12 billion a year earlier. Exports to China increased 26.21% to $1.61 billion, while shipments to Russia rose 24.18% to $149.1 million, data released by the Marine Products Export Development Authority, under the ministry of commerce and industry, showed.

“The decline in exports to the US largely reflects the impact of reciprocal tariffs that remained in force until they were struck down by the US Supreme Court in February 2026. During this period, Indian exporters actively diversified into alternative markets such as Vietnam, the EU and Russia, enabling the sector to maintain overall export growth despite weakness in the American market,” said Ajay Srivastava, founder, Global Trade Research Initiative (GTRI).

"The EU market has recorded strong export growth, as it listed 102 new Indian fishery establishments for export from India to EU member countries last year. Vietnam’s demand for raw material has also grown as a large portion of Indian marine products, especially shrimp, is processed and redistributed from there. Also, China has emerged as a key destination," said K.N. Raghavan, secretary general of the Seafood Exporters Association of India.

Queries emailed to the commerce ministry and the embassies of Vietnam, Japan, Russia, and China remained unanswered till press time.

The strong growth in exports to Vietnam is significant because the country functions not only as a consumer market but also as a major seafood processing and re-export centre. Indian shrimp and other marine products are often processed in Vietnam before reaching destinations such as China, Europe and other East Asian markets.

The rise in exports to Russia, meanwhile, points to expanding opportunities in newer geographies as geopolitical realignments reshape food trade patterns. Since the disruption of traditional trade routes and sanctions-led changes in sourcing strategies, Russia has emerged as a promising destination for agricultural and marine products from India.

Trade economists see it as a sign of India’s seafood sector gradually reducing its dependence on the US market and building resilience through diversified export destinations.

“India’s expanding seafood exports to Europe, East Asia and emerging markets highlight the sector’s growing global competitiveness and its ability to adapt quickly to changing trade conditions,” said Abhash Kumar, a trade economist.

Amid expectations of improved market access and stronger demand from key destinations, the seafood export sector remains optimistic about growth prospects in the current financial year, driven by ongoing trade discussions and steady performance in traditional markets.

“We expect seafood exports to grow further this year, supported by the government’s ongoing discussions on a free trade agreement with the US, while the new markets are also expected to perform well.” said MR Premchandra Bhat, director, Kerala-based Mangala Marine Exim India Private Ltd.