Impact of U.S. Tariffs on India's Seafood Industry
The central government encouraged India's seafood industry to face the newly imposed 25% tariffs by the U.S., with a possibility of increasing to 50% on August 27, 2025, depending on trade negotiations.
Exploration of Export Promotion Mission (EPM) Tweaks
- The government is considering adjustments to the Export Promotion Mission (EPM), introduced in the 2025 Union Budget with an allocation of ₹2,250 crore.
- EPM aims to facilitate cheaper export credit, address non-trade barriers, and ensure payment security for overseas buyers, focusing on MSMEs.
- Initially led by the Ministries of Commerce, MSME, and Finance, discussions are underway to include the Textiles and Fisheries Ministries.
Significance of Apparel and Seafood Exports
- The U.S. typically contributes to about one-third of India's apparel and seafood exports annually.
- The government is urging diversification into other markets due to stalled Bilateral Trade Agreement negotiations with the U.S.
Challenges and Strategic Responses
- Current bilateral relations are strained, with trade, cultural, and military ties at unprecedented lows since the Cold War.
- Disruption of established supply chains, evident from the EU's reliance on Russian oil and global dependence on Chinese rare earth elements, highlights the complexity of trade realignments.
Proposed Strategic Adjustments
- Consideration of refashioning trade ties with neighboring countries, especially China, as previous strategies focused on the U.S. have not yielded expected results.
