Shares of India’s leading shrimp exporters fell, with Avanti Feeds down 4% to Rs 614.05, Apex Frozen Foods plunging 11.6% to Rs 202.90, while Waterbase Ltd dropped 3.8% to Rs 47.
Textile exporters were also hit. Gokaldas Exports lost 2.4%, Pearl Global fell 5.3%, and Kitex Garments, which derives 70% of sales from the U.S., slumped 5%, while KPR Mill shed 2.5%. Raymond Lifestyle, Welspun Living, and Trident posted smaller losses of 1–3%.
Tariff shock
Trump’s additional 25% levy took effect Wednesday, August 27, effectively raising import duties on Indian goods to as high as 50%. With markets shut for Ganesh Chaturthi, the full impact surfaced only in Thursday’s session. The rate is far higher than those imposed on Asian peers, as Bangladesh and Vietnam exporters face only 20%, undercutting India’s competitiveness in key categories such as apparel and seafood.
Shrimp exporters are particularly exposed. The U.S. was India’s top seafood buyer in 2024–25, importing $2.7 billion worth, with frozen shrimp accounting for 92.5% of the basket, according to the Marine Products Export Development Authority. Avanti Feeds generated 77% of its quarterly revenue from North America, while Apex Frozen derived 53%.
Analysts weigh in
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, said the levies are likely to weigh on equities in the short run but may not spark panic.“The 50% tariff imposed on India which has already come into effect will weigh on market sentiments in the near-term. But the market is unlikely to panic since the market will view this high tariffs as a short-term aberration which will be resolved soon,” Vijayakumar said, pointing to U.S. Treasury Secretary Scott Bessant’s assurance that “at the end of the day India and U.S. will come together.”
Beyond tariffs, Vijayakumar highlighted stretched valuations and weak earnings growth as more persistent concerns. In his view, export-oriented sectors may face near-term headwinds, while investors are likely to rotate into “fairly valued domestic consumption themes.” He suggested that shifting exposure from overheated small-caps to safer large-cap consumption plays could offer better protection.
Wider economic fallout
The tariffs could shave up to 40 basis points off India’s FY26 growth, said Sakshi Gupta, Principal Economist at HDFC Bank. “The U.S. accounts for about 20–25% of India’s goods exports, and nearly half of that basket is now subject to a 50% tariff. This is a significant blow to export competitiveness,” Gupta told ET Now, warning of spillovers into jobs, investment, and sentiment.
Gupta said labour-intensive sectors such as leather, footwear, and gems & jewellery are likely to be hit hardest, though pharmaceuticals, electronics, semiconductors, and petroleum products remain outside the tariff net.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)