India's shrimp exports to cross ₹50,000cr this financial year
What's the story
India's shrimp exports are likely to cross ₹50,000 crore this fiscal, a 13-15% increase from the previous year. The growth comes after three years of stagnation and is mainly due to diversification into new markets. Despite facing steep US tariffs, Indian exporters have managed to maintain their operating margins and credit profiles owing to low debt levels.
Market diversification
Operating margins expected to remain stable
An analysis of 63 shrimp exporters by Crisil Ratings, which accounts for 55% of the industry's revenue, shows that shipments to new markets are driving growth. The operating margin is expected to remain stable at 7.0-7.5% this fiscal and the next one, as benefits from tariff reduction are passed on to customers. Despite a temporary spike in working capital requirements, the credit profiles remain stable due to low long-term debt levels.
Market impact
Overall export volume grew by 9.5% in 1st 3 quarters
Despite a 15% drop in volume to the US, India's largest shrimp market, overall export volume grew 9.5% in the first three quarters of this fiscal. This is partly due to frontloading shipments until August 2025 in anticipation of higher tariffs. As a result, the share of US exports could fall to 32-33% this fiscal from 40% last financial year.
Growth outlook
US sales expected to return to previous levels next fiscal
Next fiscal, US sales are expected to return to previous levels. Free-trade agreements and improved access to Russia and the EU due to better product quality and processing capacities will help diversify India's shrimp industry. Rahul Guha from Crisil Ratings noted, "Shrimp exports beyond the US have grown in double digits in the first 9 months this fiscal."