July 30th 2025.
In New Delhi, renowned agri-economist Ashok Gulati voiced concerns about the potential impact of the recent decision by US President Donald Trump to impose a higher tariff on all Indian goods, effective August 1. In particular, Gulati highlighted the potential consequences for India's seafood exports, especially in the shrimp industry.
According to Gulati, the US's decision was unexpected and alarming, as he had expected a tariff of only 10-15 percent. He described Trump's action as unpredictable and punitive, indicating the potential for severe consequences for India's economy.
Gulati expressed concern that the higher tariff would have a significant impact on India's shrimp exports, as it would make them less competitive in the US market. He noted that Ecuador, with a lower tariff and closer proximity to America, would likely benefit from the situation.
The consequences of the higher tariffs are not limited to the seafood industry. Gulati also pointed out that India's textile industry could be affected, as the advantage gained through the India-UK free trade deal would be offset by the US's steep tariffs.
For India, the shrimp industry is a significant source of revenue, with exports reaching approximately USD 4.88 billion in 2024-25. This accounted for 66% of the country's total seafood exports. The US and China are the top markets for Indian shrimp, with the US alone accounting for almost half of the export volume for raw shrimp varieties.
In conclusion, Gulati's remarks highlighted the potential impact of the US's decision on India's seafood exports, and the overall consequences for the country's economy. He emphasized the need for swift action to mitigate the effects of the higher tariffs and maintain India's competitiveness in the global market.
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