The aquaculture sector has been witnessing significant government focus of late, given its potential for generating colossal employment and contributing substantially to the overall GDP. The Union Budget 2025 proposed the highest annual budgetary support of ₹2,703.67 crore for the fisheries sector, up 3.3 per cent from the allocation of ₹2,616.44 crore made during 2024-25.
The Budget 2025-26 emphasised enabling a framework for sustainable harnessing of fisheries from exclusive economic zones (EEZ) and high seas, with a special focus on Lakshadweep and the Andaman & Nicobar Islands. The proposal is expected to propel growth in the marine sector through sustainable harnessing of the untapped potential of marine fish resources in the Indian EEZ and high seas.
Finance Minister Nirmala Sitharaman said in her Budget 2025 speech that India ranks second-largest globally in fish production and aquaculture. Seafood exports are valued at ₹60,000 crore. Hence, there is merit in increasing the focus and effort the segment requires.
A sunrise sector
Aquaculture, the farming of fish, shrimp, algae, and other aquatic species, has experienced remarkable growth in recent years, becoming one of India’s most dynamic and high-potential sectors. The industry has evolved rapidly, driven by rising global demand for seafood, technological advancements, and improved production methods. According to government data, India’s seafood export volume reached an unprecedented 17,81,602 tonnes in FY24, valued at ₹60,523.89 crore (approximately $7.38 billion). This surge in exports highlights the growing role of Indian aquaculture in the global seafood market and its increasing economic significance.
As stated in a Press Information Bureau (PIB) report, the fisheries and aquaculture sector contributes approximately 1 per cent to India’s Gross Domestic Product (GDP) and over 5 per cent to the agricultural GDP. India is the third-largest fish producer worldwide, accounting for around 8 per cent of global fish production. This not only strengthens India’s position as a major player in the global seafood industry but also makes significant contributions to the national economy. The sector adds about 1.09 per cent to the country’s Gross Value Added (GVA) and over 6.72 per cent to agricultural GVA. With continued innovation and investment, aquaculture in India is poised to further enhance its contribution to economic growth, job creation, and food security, making it a critical component of the nation’s future growth strategy.
How can we better the impact of aquaculture development?
The Indian aquaculture sector is witnessing rapid growth, and exports are touching record highs. While the sector has the potential to contribute significantly to economic growth and generate employment, the key challenge is that a significant portion of the industry lacks proper structure, quality control, and efficient marketing practices, which drags down its profitability. The government has taken several initiatives to formalise the sector, such as the Pradhan Mantri Matsya Sampada Yojana (PMMSY) and the Fisheries and Aquaculture Infrastructure Development Fund (FIDF). Formalisation of the sector will lead to higher yields due to standardised farming practices. At the same time, it will reduce wastage due to optimised use of resources.
This will also generate more employment as more workers enter the sector due to factors such as job stability, better wages, and social security. At the global level, Indian seafood products will have greater access to global markets, boosting foreign exchange earnings.
The development of India’s aquaculture sector holds immense potential to reshape the country’s economic landscape, propelling it towards greater dominance in the fisheries industry. While India has already secured its position as the second-largest aquaculture producer globally, its future growth lies in expanding its marine fisheries sector. At present, the country’s reliance on inland resources is evident, with 131.13 lakh tonnes of the total 175.45 lakh tonnes of fish production in FY2022-23 coming from inland fisheries, and only 44.32 lakh tonnes from marine sources. This presents a clear opportunity to tap into the vast and largely untapped potential of the marine sector, which, with sustainable practices and enhanced infrastructure, can significantly boost production and exports.
India’s aquaculture sector is not only a cornerstone of employment—providing livelihoods to nearly 28 million people—but also holds the key to increasing the country’s foreign exchange earnings. By formalising and expanding its reach in marine fisheries, India can achieve enhanced access to global markets, positioning itself as a dominant force in the international seafood trade. As the sector evolves, the combination of government focus on sustainable harnessing of fisheries from EEZ and high seas, growing production, improved quality control, and international market access will solidify India’s role as a leader in global aquaculture, creating a ripple effect of economic growth and job creation for years to come.
The author is Partner, Forvis Mazars In India
