Indian seafood exporters are set to gain significantly in the UK market following the signing of a new trade agreement that eliminates long-standing tariff disadvantages, the Ministry of Fisheries has announced.

The "balanced" trade arrangement places Indian marine exports on an equal footing with regional competitors such as Singapore and Vietnam, which have previously enjoyed preferential access under the UK-Vietnam Free Trade Agreement and a similar UK-Singapore agreement.

Until now, Indian exporters faced tariff barriers that hampered their competitiveness, particularly in high-value categories such as shrimp and processed seafood products. With the removal of these tariffs, Indian companies are now better positioned to leverage the country’s robust production capabilities, skilled labour force, and improved traceability systems to increase their share in the UK's seafood market.

"This agreement offers a level playing field for Indian exporters and is expected to accelerate our marine exports to the United Kingdom," the ministry said in a statement. Industry projections suggest a potential 70% increase in seafood exports to the UK over the next few years.

The ministry highlighted that the trade pact allows Indian exporters to diversify their markets, reducing reliance on traditional destinations like the United States and China. The UK, with an annual seafood import market valued at USD 5.4 billion, presents a lucrative opportunity for Indian suppliers.

India’s seafood industry has invested heavily in strengthening quality control and traceability in recent years, in line with global standards. These improvements now place Indian exporters in a favourable position to capitalise on the new market access.

Industry experts believe the timing of the agreement is strategic, as global supply chains undergo restructuring and importing nations seek to diversify their sourcing partners. “This development aligns with India’s ambition to emerge as a global leader in sustainable and competitive marine trade,” the ministry added.

In FY24-25, India's total seafood exports stood at ₹60,523 crore, at about 1.78 million tonnes. Of this, exports to the UK accounted for ₹879 crore. Despite which, India holds just about 2.25% share of the UK's overall seafood import market, a figure expected to rise under the new trade deal.

Source: CNBC