India’s seafood export industry is seeing renewed hope as lower US tariffs ease trade pressure. After months of slowdown, exporters expect demand to rise again. The tariff cut could reshape India–US seafood trade, bringing relief to exporters and coastal communities that depend on global markets.
Indian seafood exporters are looking forward to better opportunities as the United States has consented to lower the import duties on specific goods coming from India to 18%, which is a reduction from the former tariff of 25%. The Seafood Exporters Association of India (SEAI) expressed gratitude for the decision, suggesting that it ought to facilitate a renewed increase in exports to the US following a period of decreased activity.
During the current fiscal year, there has been a substantial decline in Indian fish exports to the United States. Specifically, between April and November, the quantity of exports decreased by approximately 15%, with the overall value decreasing to about $1.72 billion, compared to $1.84 billion during the preceding year.
K.N. Raghavan, the General Secretary of SEAI, mentioned that this was primarily caused by the increased taxes faced by exporters and the ambiguity surrounding future tariff rates, which led to buyer reluctance in making new purchase requests.
The significant shift arises from the United States loosening tariffs as part of a wider trade agreement revealed at the beginning of February. Indian exporters experienced considerable difficulties in August of the previous year when Washington enforced substantial tariffs of up to 50% on Indian commodities, which incorporated a 25% surcharge connected to India’s prior acquisitions of Russian oil.
This made Indian seafood less competitive when measured against products from other countries.
The majority of India’s exports to the US consist of frozen fish and shrimp, with the US being among the primary destinations for Indian fish products, following China and the European Union. The American market is very important for many fishermen and processing firms in India, as it accounts for a large portion of their total exports.
According to Mr. Raghavan, the reduction of the tariff to 18% “creates a level playing field once more,” thereby boosting the competitiveness of Indian seafood in the market. He further stated that exporters now anticipate a rebound in demand and a return of export volumes to levels seen before the increase in tariffs.
Throughout the period of elevated tariffs, a significant number of purchasers opted to store goods in bonded warehouses rather than promptly clearing them, as they awaited clarity on the final policy.
Although this tariff decrease does not eliminate all obstacles, industry leaders believe that it represents a fresh opportunity. They express optimism that the enhanced trade conditions will contribute to reestablishing trust among purchasers and mitigating the accumulated uncertainty that had hampered new orders.
This advancement has the potential to mark a crucial juncture for the Indian seafood industry, which sustains a vast number of employment opportunities in coastal areas. As trade restrictions are eased and demand recovers, numerous exporters are now approaching the future with cautious optimism.
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Conclusion
The US tariff cut to 18 percent is a positive boost for India’s seafood exports. It improves competitiveness, restores buyer confidence, and supports exporters and fishermen. With better trade conditions, shipments to the US are expected to recover gradually, helping the seafood sector move towards stable growth in the coming months.
