“This strategic move is aimed at boosting margins, reducing dependence on commodity-grade exports, and tapping into the growing preference for convenience foods across the US, Europe, and East Asia—India’s key seafood markets,” said two government officials aware of the matter.
The value-added exports not only fetch higher prices, but also help exporters build brand identity and long-term customer relationships, protecting them from volatile raw shrimp prices. “The price pressures have also prompted exporters to take advantage of a production-linked incentive (PLI) scheme for the sector,” said the first of the two officials cited earlier, both of whom spoke on the condition of anonymity.
Indian shrimp in the US is subjected to a 50% tariff. This has put Indian seafood at a major disadvantage in the export markets compared to competitors like Ecuador, Vietnam, and Thailand, which respectively attract 15%, 20%, and 19% US tariffs.
Several leading companies have already expanded capacity to cater to quick-service restaurant (QSR) chains and private-label retail segments abroad by availing benefits under the PLI scheme. In FY25, India exported marine products worth $7.39 billion, of which $2.68 billion went to the US, accounting for about 36% of the total exports, according to commerce ministry data.
“Indian shrimp exporters are increasingly shifting towards value-added products to meet growing demand in the US and European markets. With consumers preferring convenient seafood options, ready-to-cook and ready-to-eat shrimp categories are witnessing strong growth,” said K.N. Raghavan, secretary general of the Kochi-based Seafood Exporters Association of India.
Exporters say the shift helps them overcome price pressures in the traditional frozen shrimp segment while improving margins. Companies are expanding product lines to RTC and RTE packaged shrimp tailored for retail chains and food service markets abroad. The move reflects India’s strategy to capture higher value in global seafood trade and strengthen its position as a key supplier.
A leading seafood exporter said that it is planning to diversify into processed shrimp products, citing higher margins and growing global demand for value-added seafood, especially in West Asia and Europe.
“We are planning to diversify into ready-to-cook and ready-to-eat formats of shrimp by next year with a tentative investment of ₹150 crore,” said Sreeram Inagalla, chief operating officer, international business, Kings Infra Ventures Ltd. The company is one of the key players in India’s seafood industry with a fully-integrated shrimp value chain, covering hatcheries, contract farming, processing, exports and branded retail.
He said that processed shrimp products offer stronger realizations compared to commodity exports, supported by expanding retail and demand from hotels, restaurants, and cafés. The firm plans investments in modern processing facilities, packaging innovation and branding. The move aligns with India’s broader push to increase value-addition in seafood exports and enhance sector competitiveness.
According to the second official, government support under the PLI scheme for food processing has played a pivotal role in driving diversification into this segment. “Under the PLI scheme, around 10 exporters committed investment worth ₹1,040 crore. However, the actual investment is now over ₹1,157 crore,” said the second official.
According to data from the Union ministry of food processing, Sandhya Aqua has announced the largest investment at ₹180 crore, followed by Devi Fisheries Ltd ( ₹113 crore) and Gadre Marine Export ( ₹103 crore).
Other notable commitments include those by Sandhya Marines Ltd ( ₹90 crore), Nekkanti Seafoods Ltd ( ₹81.39 crore), Avanti Frozen Foods ( ₹81.32 crore) and Choice Trading Corporation ( ₹80 crore). ITC Ltd’s marine division has committed ₹75.55 crore, while Devi Sea Food Ltd has earmarked ₹79.11 crore, signalling sustained industry confidence in India’s growing seafood export market.
Queries emailed to the PLI beneficiary companies and the ministry of food processing remained unanswered till press time.
In 2021, the Centre launched the production-linked incentive scheme for food processing industry (PLISFPI), including for processed shrimp, to build global-level food manufacturing companies and promote Indian food brands in international markets. The scheme has a total budget of ₹10,900 crore and is to be implemented from 2021-22 to 2026-27. The initiative aims to expand food processing capacity in the country and create leading Indian brands in the sector.
Exporters say many micro, small, and medium (MSME) enterprises in the segment have already diversified without availing the PLI scheme. According to the first official, India’s seafood sector is set to see a fresh round of capital infusion, with several prominent exporters outlining new investment plans to strengthen processing capacity and value-added production.
“From an MSME standpoint, the shift toward value-added shrimp products is both necessary and timely. Smaller exporters cannot survive on thin margins from raw shrimp alone, especially when global prices are under pressure. Value addition gives them better realizations and a more stable customer base,” said Vinod Kumar, president, SME Forum.