India Announces Record Budget Allocation for the Fisheries and Aquaculture Sector in 2026-2027
Fishermen pull boats anchored in the sea into a creek as a cyclone warning was issued in the Bay of Bengal and the sea turned rough.
©FAO/Harsha Vadlamani
On 1 February 2026, India presented its Union Budget for the financial year 2026–2027 which indicates the government’s projected spending, expected receipts, changes to import duties of products, and proposed funding distribution for public programmes. It serves as a formal statement of fiscal strategy, reflecting broader national economic objectives.
Under the latest Union Budget, several announcements were made to facilitate the growth in India’s fisheries and aquaculture sector. Some of these include increased budgetary outlays for various schemes, streamlining policies for fishing in the exclusive economic zones (EEZ) and the High Seas, treatment of these landings, changes to duties on imports of certain products.[1]
Scheme-Specific Allocation
India’s Union Budget 2026–2027 has allocated the highest-ever outlay for the fisheries and aquaculture sector, totaling USD 315.54 million (INR 2 761.80 crore). This represents a 2.15 percent increase compared to the allocation in 2025–2026. Out of the total allocation, USD 289.10 million (INR 2 530 crore) has been set aside for scheme-based initiatives, which provide direct support to fishers and fish farmers, such as Pradhan Mantri Matsya Sampada Yojana (PMMSY)2, and the Fisheries and Aquaculture Infrastructure Development Fund (FIDF)3. This increase signals the government’s strengthened focus on supporting India’s fishers, aquaculture producers, and related industries.
Fishing in EEZs and High Seas by Indian Flagged Vessels
The budget further indicated specific policies to help Indian fishers better realize the economic potential of marine resources located beyond territorial waters. Catch obtained by Indian vessels operating in the EEZ and international waters will now be subject to a new taxation regime. Previously, fish harvested in the EEZ was not considered as a domestic output. In practice, catches made by Indian vessels outside territorial waters and in the High Seas, and landed in India, were typically regarded as imports, making them liable for customs duty and integrated Goods and Services Tax. Furthermore, fish landed at foreign ports will now be classified as exports. Appropriate monitoring and compliance measures would be established to minimize the risk of misuse during harvesting, transport, and transshipment. These policy changes reduce operating expenses by granting national origin status to EEZ catches, improve price realization by treating fish landed at foreign ports as exports, and promote greater formalization of offshore operations.
The 2026–2027 budget also presented details on the implementation of previous budget announcements, specifically, the enabling framework for the sustainable harnessing of fisheries from the Indian EEZ and the High Seas, with a focus on the island states of Andaman and Nicobar and the Lakshadweep Islands. Under the Sustainable Harnessing of Fisheries in the EEZ of India Rules 2025, motorised fishing vessels with an overall length of 24 meters or more, and mechanised fishing vessels are required to obtain an access pass to operate in the EEZ.
Customs duties
Under the customs duty-related announcements, import duties on Artemia (shrimp) (ITC-HS 03063660) and Artemia cysts (ITC-HS 05119140) have been reduced to zero percent from 5 percent, effective 1 May 2026, thereby lowering input costs for aquaculture operations that rely on these products as feed. India’s global imports of these stood at USD 17.42 million in 2025. In addition, a separate tariff line has been introduced for frozen krill (ITC-HS 03061910) with a 15 percent import duty, indicating a differentiated tariff structure for key fisheries and aquaculture inputs.
Further, the duty-free import ceiling for specified goods used in processing fisheries and aquaculture products for export has been raised from 1 percent to 3 percent of the previous financial year’s Free on Board (FOB) export value of such exports, effective 2 February 2026. Exporters of fisheries and aquaculture products are allowed to import certain specified goods (such as processing inputs, additives, packaging, or specialized materials) without paying customs duty. Earlier, the total value of such duty-free imports was capped at 1 percent of the FOB value of fisheries and aquaculture exports made in the previous financial year. From 2 February 2026, this limit has been increased to 3 percent of the previous year’s FOB export value. This revision allows exporters to source a higher value of eligible processing inputs without customs duty, thereby lowering input costs and improving export competitiveness.
Women-led Enterprises, Startups, and Fish Farmer Producer Organizations
The budget address also stated that new measures will be launched to support the integrated development of 500 reservoirs and Amrit Sarovars (inland ponds), to reinforce the fisheries and aquaculture value chain in coastal regions. These efforts will also promote stronger market connections by engaging startups, women-led enterprises, and Fish Farmer Producer Organizations (Fish FPOs).
[1] Fish Farmer Producer Organizations are collective organizations of fish farmers that are formed to achieve common goals related to production, marketing, and value addition of their fisheries and aquaculture products. They aim to provide scale fish farmers with a platform to access technical, financial, and marketing support, which they would otherwise find difficult to access individually.
[2] PMMSY was launched by the Government of India in 2020 and is a flagship fisheries development scheme to promote sustainable and responsible growth in the fisheries and aquaculture sector. It focuses on increasing fish production, improving infrastructure, strengthening value chains, and enhancing fishers’ incomes. Further details can be accessed here
[3] FIDF is a Government of India financing mechanism aimed at strengthening fisheries and aquaculture infrastructure, including harbors, cold chains, and processing facilities. It provides concessional funding through institutional credit to support large-scale infrastructure development across the fisheries value chain. More information on FIDF can be accessed here.