New Delhi: US President Donald Trump's decision to reduce reciprocal tariff on Indian goods, after months of trade tensions, is expected to significantly boost seafood and basmati rice exports.
Industry officials said that that lower tariffs would make Indian seafood and basmati more competitive in the US market, stimulate fresh orders, and improve price realisations.
They added that the policy move could also encourage higher production, greater investment in processing capacity, and stronger income support for aquaculture farmers. Exporters said the impact of the reduced tariff will be reflected mainly in the next fiscal year, as less than two months remain in the current one.
"Whatever orders exporters had in hand have already been shipped, and order books have now dried up. In that sense, the tariff announcement has come at the right time. Given the decline in exports, it may not provide much relief this year as less than two months are left, but next fiscal year we expect exports to cross the $3-billion mark and regain nearly 36%market share," said K.N. Raghavan, Secretary General, Seafood Exporters Association of India (SEAI).
According to social media post by Trump, the US will reduce the reciprocal tariffs from 25% to 18%. The 25% punitive tariff that was levied for India’s Russian oil purchase is also to go—effectively reducing US tariff on India’s exports from 50% to 18%.
Seafood exporters were hit harder than basmati rice exporters this year due to the onslaught of high duties. Following the tariff cut, seafood exports to the US are expected to grow by 8-10% in the next fiscal over FY25's $2.78 billion, while basmati rice shipments may rise by 10–15% from $337 million in FY25.
Market share
The US is the largest market for Indian seafood, and industry executives said that lower tariffs will enhance competitiveness, lift demand in the US market, and support higher export volumes across key food segments.
Prior to the announcement of tariff reduction, seafood exports to the US were subjected to a 59.7% tariff, including countervailing duty and anti-dumping of 9.7%, which puts India at disadvantage compared to its competitor Ecuador, which is subjected to only 19% duty.
India’s seafood exports to the US declined during April to November 2025 compared to the same period last year. Export volumes fell to 201,501 tonnes in April–November 2025 from 236,061 tonnes in April–November 2024. In value terms, exports slipped to $1.72 billion, from $1.83 billion a year earlier.
India exported marine products worth $7.39 billion in 2024-25, of which 36%, went to the US, according to the Marine Products Export Development Authority, under the Union ministry of commerce and Industry. Frozen shrimp accounted for a major share of these shipments.
Lower US tariffs would further boost Indian basmati exports. “The tariff reduction would enhance landed-price competitiveness and lead to stronger demand for basmati rice. We expect basmati rice exports to grow by 7–8% in the current fiscal year and 10–15% in the next fiscal year,” said Satish Goel, president of the All India Rice Exporters Association.
During April–November 2025, India exported around 200,000 tonnes of basmati rice, up from 1.80 lakh tonnes in the same period last year. Further, India exported 274,000 tonnes of basmati rice to the US in FY25.
Lower tariffs would benefit both basmati and non-basmati rice segments, helping India defend and expand its market share in the US while competing more effectively with other exporting countries, said Prem Garg, national president of the Indian Rice Exporters Federation (IREF). He added that the proposed tariff reduction would restore a level playing field with key rivals such as Thailand and Pakistan, whose rice exports to the US currently attract tariffs of around 19%.
Experts believe that the lowering of US tariffs signals a fundamental transition from transactional exchange to a mature strategic partnership. "It embodies a genuine win-win—catalysing export growth, industrial expansion, and deeper integration into global value chains for India, while strengthening supply-chain resilience, broadening sourcing options, and providing access to one of the world’s fastest-growing markets and talent ecosystems for the US. Far beyond a commercial arrangement, the agreement reflects a shared strategic vision in which economic collaboration reinforces trust, innovation, and long-term prosperity," said Atul Chauhan, board member of the Indo- American Chamber of Commerce, and immediate past president and chancellor, Amity University.
Besides seafood and basmati, the proposed reduction would also boost fruits and vegetable exports.
Ekram Husain, vice-president of the VAFA Fresh Vegetables and Fruits Exporters Association (Maharashtra) said that the US has emerged as one of the fastest-growing markets for Indian mangoes and pomegranates. "A reduction in US import tariffs could significantly boost India’s exports of fruits and vegetables. Lower duties would improve price competitiveness for Indian produce such as grapes, mangoes, bananas, pomegranates, onions and processed vegetables, helping exporters better compete with suppliers from Latin America and Southeast Asia."
A tariff cut would not only expand export volumes but also support Indian farmers through better price realisation, reduce post-harvest losses, and encourage investment in cold chains, quality certification and value-added agri exports, experts said.