India's Shrimp Exports to Decline 15-18% Due to US Tariffs, CRISIL Predicts.

India's shrimp export volume is expected to decline 15-18% this fiscal due to higher US tariffs. The US has raised tariffs to 58.26% effective August 27, which will lower realizations and revenues for Indian exporters. The decline in revenues and operating profit margin will erode debt protection metrics and credit profiles of players. The US has been a preferred destination for Indian shrimp exporters, but the increase in tariffs to over 50% makes India uncompetitive compared to other nations.

India's shrimp export volume is expected to decline by 15-18% this fiscal year due to higher US tariffs, according to recent reports. The US has raised tariffs to 58.26% effective August 27, which will significantly impact the realizations and revenues for Indian exporters. This increase in tariffs makes India less competitive compared to other nations, potentially eroding debt protection metrics and credit profiles of players in the sector.

The US has traditionally been a preferred destination for Indian shrimp exporters, but the new tariffs have made it difficult for them to maintain their market share. The higher tariffs are expected to lead to a significant decrease in demand from US buyers, who are now looking at more cost-effective alternatives from other countries such as Mexico, Vietnam, and Bangladesh.

The impact of these tariffs is not limited to the export volume alone. The decline in revenues and operating profit margin will also erode the debt protection metrics and credit profiles of Indian shrimp exporters. This could lead to financial stress for these companies and potentially affect their ability to access credit and invest in growth opportunities.

The government has been urged to implement tax reforms and support schemes for MSMEs to mitigate the impact of these tariffs. The Global Trade Research Initiative (GTRI) has suggested measures such as targeted credit lines and wage support for shrimp hubs to help them navigate this challenging period.

In a country already facing a protracted crisis of job creation, the decline in shrimp exports due to US tariffs is a significant concern. The government and industry stakeholders need to work together to find solutions that can help the sector recover and maintain its competitiveness in the global market.

References:
[1] https://www.bbc.com/news/articles/c98lr56mznjo
[2] https://economictimes.indiatimes.com/news/economy/foreign-trade/indias-labour-intensive-sectors-brace-for-70-export-collapse-as-us-goes-ahead-with-50-tariffs-gtri/articleshow/123519154.cms