Indian Seafood Exports

Syllabus: GS3/ Economy

Context

• The Embassy of India in Brussels hosted the second edition of the Indian Seafood and Wine Tasting Event showcasing India’s finest culinary offerings.

Seafood Industry of India

• India is the third-largest fish and aquaculture-producing country and the industry employs more than 28 million people in India.
  • It accounts for 7.96% of the total global fish production. 
• India’s seafood exports have increased from Rs. 46,662.85 Crore in 2019-20 to Rs. 61043.68 Crore in 2023-24 registering a growth of 30.81%.
• India mainly exports frozen shrimps, fish, cuttlefish, squids, dried items, and live and chilled items.
  • The frozen shrimp is the largest exported marine product contributing to more than 40% of the total quantity and about 67.22% of the total export value.

Major Export Markets

• USA, China, and the European Union (EU) are the largest importers of Indian seafood.
• With 500 EU-approved firms, the EU has become India’s second-largest seafood market, with annual purchases of USD 0.95 billion. 
• Emerging markets like Japan, Vietnam, and the Middle East are gaining traction.

Government initiatives

• Marine Products Export Development Authority (MPEDA): It facilitates technology upgradation, market development, and quality certification.
• RoDTEP: The Government has also increased the Remission of Duties and Taxes on Export Products (RoDTEP) from 2.5% to 3.1% for various seafood products.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY): It was implemented to bring the Blue Revolution through sustainable and responsible development of the fisheries sector in India from FY 2020-21 to FY 2024-25.
• The reduction in import duties on various ingredients /inputs for manufacture of prawn and shrimp feed/fish feed announced in Budget 2024-25, will make Indian seafood-based value-added products more competitive in international markets.
• Fisheries and Aquaculture Infrastructure Development Fund (FIDF): it was implemented to create a fund to address the infrastructure requirement for the fisheries sector.
• Kisan Credit Card (KCC) scheme was extended in the 2018-19 to fisheries and animal husbandry farmers to help them meet their working capital requirements.

Challenges faced by India

• Stringent Regulatory Norms: Major markets, including the EU and USA, impose rigorous quality checks, leading to frequent rejections.
• Technology Adoption: Limited access to modern technology and practices for sustainable aquaculture.
• Climate Change: Rising sea temperatures, ocean acidification, and changing weather patterns affecting fish habitats and breeding.
• Pollution: Water pollution from industrial, agricultural, and plastic waste harms aquatic life and ecosystems.
• Infrastructure: Inadequate cold storage, processing facilities, and transportation affecting fish quality and market access.

Way Ahead

• Market Diversification: Expanding exports to Africa, South America, and ASEAN countries to reduce dependency on traditional markets.

• R&D and Innovation: Encouraging research in species diversification, disease management, and climate-resilient aquaculture practices.
• Sustainability: Promoting eco-friendly fishing and aquaculture practices to ensure long-term viability of resources.

Concluding remarks

• Indian seafood exports hold immense potential for driving economic growth, and promoting sustainable development. 
• Strategic interventions in quality enhancement, market diversification, and infrastructure modernization can position India as a global leader in seafood exports.

Source: PIB