Boosting India's Export Potential: Strategies for Achieving a Trillion Rupee Seafood Industry

India stands on the verge of a transformative opportunity in its seafood industry. The country’s advantageous position in the seafood market is due to its geographical location. With a coastline stretching over 7,500 kilometres, India has access to a range of resources. From reefs filled with exotic fish to deep ocean areas housing commercially valuable species, the waters surrounding India support a rich biodiversity that fuels its thriving seafood industry. India is currently one of the top five global exporters in the seafood industry.

Going ahead, the Indian seafood industry aims for greater achievements by setting a target of reaching US$ 13.2 billion (Rs. 1 trillion) in exports. To accomplish this goal, India relies on its workforce with expertise in both traditional and modern fishing practices. This knowledge ensures harvesting methods that are efficient and environmentally friendly. India’s established network of processing facilities guarantees that its seafood meets quality standards when reaching global markets. Recognising the potential of the seafood industry as a major contributor to the economy, the Indian government has introduced various supportive measures. These initiatives include subsidies for infrastructure development and skill enhancement programmes for workers. By leveraging these strengths and with continued government backing, the Indian seafood sector is poised for growth on the world stage.

Export performance

In FY23, India’s seafood exports hit a record high, reaching 17,35,286 metric tonnes (MT) valued at US$ 8,094.31 million (Rs. 63,969.14 crore). The US remained the primary importer of Indian seafood, with a share of 33.52%. Meanwhile, exports to China, the second-largest market destination, stood at 18.64%. Additionally, the European Union, Southeast Asia, Japan, and the Middle East also emerged as key markets for Indian seafood.

Source: MPEDA Annual Report 2022–23

Aquaculture

Aquaculture, which involves the cultivation of fish, shrimp, algae, or shellfish, serves as a crucial factor for India's fishing industry, driving its economic prosperity. Each farm receives a unique identification number after verification, including GPS coordinates. These farms are linked to the Pre-Harvest Test and National Residue Control Plan to monitor banned antibiotics. In 2022–23, 1,501 new farms were enrolled, and 2,683 farms underwent level two verification. Currently, out of the 78,779 enrolled farms, 56,083 farms covering 99,617 hectares have been approved after level two verification. In 2022–23, export-oriented aquaculture production grew to 12,19,237 MT.

Source: MPEDA Annual Report 2022–23

Strategies to boost export potential

India has set an ambitious target of reaching Rs. 1 trillion (US$ 11.99 billion) in the coming years. Here, we explore key strategies that can help India achieve this goal:

1. Sustainable Practices

The future of the seafood industry hinges on sustainable practices. India can lead by example through the adoption of fishing techniques that have no impact on the environment. This involves enforcing regulations to avoid unethical fishing and utilizing gear that reduces unintended catches. Moreover, encouraging aquaculture can address rising demand while easing strain on natural fish populations. By placing an emphasis on sustainability, India can secure a lasting supply of resources and appeal to eco conscious consumers globally.

2. Modernisation

Technology can help propel India’s seafood industry to greater heights with the help of technology. Enhancing fishing vessels with innovative tools will improve efficiency and increase safety while out at sea. It will also elevate the overall standards of the industry. Moreover, investing in top-notch processing plants is vital to guarantee top-tier product quality and adherence to market requirements. One of the most critical aspects is upgrading the cold chain infrastructure, establishing a network of refrigerated transport and storage facilities to reduce spoilage and maintain product quality along the supply chain. These investments are essential for securing long-term profitability and a reputation for excellence.

3. Value Addition and Branding

The seafood sector in India has the potential to boost its worth by moving beyond exporting raw materials. Transforming seafood into enhanced products such as meals or pre-seasoned fillets aligns with the changing consumer tastes and will help fetch better prices. Building brands that appeal to consumers will add more value to Indian seafood. Strategic marketing efforts that highlight the freshness, excellence and distinctive tastes of seafood can help penetrate new markets and establish brand loyalty.

4. International Standards

Ensuring that seafood exports meet quality and safety requirements is essential. By establishing quality checks and earning certifications such as Hazard Analysis and Critical Control Points (HACCP), India can highlight its dedication to delivering nutritious and safe seafood products. This helps establish credibility with buyers and creates opportunities to access new markets with rigorous standards.

5. Emerging Markets

In addition to focusing on the established markets, it is worthwhile to consider the potential of emerging markets such as Southeast Asia and Africa. These regions are witnessing an increase in demand for seafood, presenting India with a chance to leverage its proximity and competitive pricing to emerge as a favoured provider. Adapting product offerings and marketing tactics to align with the preferences and regulations of these evolving markets will be the key to maximise success.

Role of stakeholders

To achieve the goal of a Rs. 1 trillion (US$ 11.99 billion) seafood industry, collaboration, among all parties is crucial. The government can kickstart this effort by implementing policies, such as offering subsidies for upgrading fishing vessels and processing facilities. By investing in skill development initiatives and highlighting the governments focus on seafood exports we can ensure that our workforce is well prepared for the future with the technologies and sustainable practices.

Establishing trade agreements with key markets will streamline export processes and create new opportunities for growth. Industry associations also play a role in promoting cooperation and sharing knowledge among companies. They can facilitate the exchange of knowledge in sustainable fishing, value addition and compliance with international standards through workshops and conferences. Moreover, industry groups can advocate for policies that benefit everyone involved in the sector by speaking on their behalf. Individual businesses must take charge of their success by embracing innovation and continuously striving to improve. Collaboration with research institutions can drive progress in aquaculture, product development and resource management.

Through collaboration, the government, industry groups and individual companies can build an environment that drives the seafood sector towards reaching its Rs. 1 trillion (US$ 11.99 billion) goal and positioning itself as a top player in providing sustainable and top-notch seafood worldwide.

Summing up

India’s seafood sector holds promise and is positioning itself as a key player in the global market. With its long coastline, abundant marine resources, a skilled labour force and a well-established processing infrastructure, the groundwork for success has been set. However, reaching the goal of establishing a Rs. 1 trillion (US$ 11.99 billion) seafood industry requires a systematic approach. Embracing sustainable practices is not only ethically right but also offers a competitive edge. Upgrading fishing vessels and infrastructure will enhance efficiency and help meet quality benchmarks. Emphasising on value addition and strategic branding can enhance the reputation of Indian seafood worldwide. Exploring growing emerging markets presents promising avenues for growth. However, achieving this vision calls for action. The government can play a role by offering support through policies, subsidies, and trade deals. Industry groups can promote knowledge exchange and advocate for the sector’s needs. Individual enterprises should embrace innovation and collaborate with research institutions. The path to establishing a Rs. 1 trillion (US$ 11.99 billion) seafood industry is not without obstacles. However, once achieved, the benefits are substantial. Through efforts and a united goal of ensuring a thriving future, India’s seafood sector has the potential to emerge as a prominent player on the global stage.