A China increasingly embroiled in tensions with Japan has unexpectedly opened a window of opportunity for India’s seafood sector. Hit hard by steep tariffs imposed by the Trump administration, Indian exporters have found some respite as Beijing tightens economic pressure on Tokyo. On November 19, China announced a blanket prohibition on seafood imports from Japan, an assertive move in the midst of its diplomatic standoff over Taiwan. The decision triggered a sharp rally in Indian seafood stocks, which surged by as much as 11 per cent within hours.
Among the biggest gainers were Telangana-based Avanti Feeds, an integrated aquaculture company, whose shares closed nearly 10 per cent higher, its strongest single-day rise in more than two months. Coastal Corporation, another prominent seafood exporter, saw its stock jump 5 per cent. Earlier this year, the company outlined plans to expand exports to China and Southeast Asia in an effort to reduce reliance on the United States, where Indian seafood has been hit by punitive tariff barriers. The surge in Indian stocks followed Beijing’s announcement that it was reinstating a complete halt on Japanese seafood shipments after Japanese Prime Minister Sanae Takaichi publicly framed the Taiwan crisis as a direct security concern for Japan. China had only recently resumed accepting Japanese seafood after lifting a two-year suspension imposed in response to the release of treated wastewater from the decommissioned Fukushima nuclear plant. The renewed embargo marks a fresh blow to Japanese exporters, for whom China once accounted for more than one-fifth of total seafood export volumes. Japan’s seafood sector is especially exposed. Although seafood represents only about 1% of its overall exports, China has historically absorbed between 20 per cent and 25 per cent of its overseas seafood shipments, making it Japan’s largest market. A full ban, therefore, severely strains a vulnerable industry and reshapes regional trade flows.
For India, the shift could bring timely relief. Any rise in Chinese demand for Indian shrimp and fish would offer a cushion at a moment when the United States India’s biggest seafood buyer, has disrupted trade with high tariffs. Major American retailers such as Walmart and Kroger are among the largest buyers of Indian shrimp and frozen fish, but shipments have faltered since Washington imposed additional duties as a penalty for New Delhi’s continued purchases of Russian crude oil, which the US claims help fund the war in Ukraine. These duties, which have climbed to as much as 50 per cent on certain products since August, have eroded the competitiveness of Indian seafood in the American market. According to Commerce Ministry figures, exports to the US fell by about 9 per cent year-on-year in October. Trade analysts note that Indian shipments to Vietnam and Thailand have risen sharply in recent months, signalling a broader pivot towards Asian markets amid shifting geopolitical alignments.
India exported roughly $7.4 billion worth of seafood last fiscal year, with frozen shrimp, its flagship product, and frozen fish together contributing more than 40 per cent of total export value. In an effort to help exporters weather global trade turbulence, the Indian government last week approved a $5.3-billion support package for labour-intensive sectors such as textiles, jewellery and seafood. The incentives are expected to bolster price competitiveness and support farmers and processors, especially in the shrimp segment which employs large numbers of workers. Despite tariff pressures in the US market, India’s seafood industry has continued to expand. Government data show that exports reached a record volume of 1,781,602 metric tonnes in the 2023–24 financial year, valued at Rs 60,523.89 crore. The US, European Union, United Kingdom and China remained among the top destinations for Indian seafood.
With Beijing turning its economic arsenal towards Tokyo, the reverberations are being felt across Asia. For Indian seafood exporters navigating an increasingly protectionist environment, China’s latest move may offer a temporary but much-needed commercial boost, even as the larger geopolitical contest continues to reshape trade patterns across the region.
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