India's 2024-25 Budget Boosts Fisheries Sector with Allocations and Strategic Support

Currently, India ranks as the second-largest fish producer globally, holding an 8% share of global fish production with a record high of 174.45 lakh tonnes in 2023-24.

India’s economic growth remains robust with a positive global outlook and a stable inflation rate, while the country's fisheries sector continues to excel as a key player in agriculture. Known for its impressive 8.9% average decadal growth from FY 2014-2023, the sector is now a major contributor to the Indian economy.

Currently, India ranks as the second-largest fish producer globally, holding an 8% share of global fish production with a record high of 174.45 lakh tonnes in 2023-24. It also stands second in aquaculture production and is a leading producer of shrimp and seafood. The fisheries sector sustains over 30 million people, predominantly from marginalized and vulnerable communities.

Under its 'Reform-Perform-Transform' motto, the Government of India (GoI) is committed to the development of the fisheries sector as a crucial element in achieving a Viksit Bharat by 2047. In line with previous transformative initiatives, the Budget Announcement for 2024-25 reflects a significant increase in funding for the fisheries sector, addressing critical challenges such as high operational and production costs.

The Department of Fisheries has been allocated Rs. 2,616.44 crore for 2024-25, a substantial increase from the Rs. 1,701.00 crore allocated in 2023-24. This represents a 54% rise in the overall budget. Notably, the Pradhan Mantri Matsya Sampada Yojana (PMMSY) scheme has received Rs. 2,352 crore, up 56% from the previous year's allocation of Rs. 1,500 crore.

Finance Minister Smt. Nirmala Sitharaman announced support for establishing a network of Nucleus Breeding Centres (NBCs) for shrimp brood stocks, which aims to enhance the genetic quality of aquaculture species. This initiative will reduce dependence on imported shrimp brood stock and is expected to boost the shrimp industry, a major contributor to seafood exports. In 2023-24, shrimp exports grew significantly to Rs. 40,013 crore from Rs. 8,175 crore in 2011.

Additionally, the Fisheries Infrastructure Development Fund (FIDF) will provide concessional finance for setting up shrimp aquaculture facilities, processing plants, and export infrastructure. Investments in infrastructure and technology are anticipated to improve production, quality, and efficiency within the shrimp value chain.

To further strengthen India’s shrimp farming industry, the budget proposes reductions in import duties on key inputs: Basic Customs Duty on shrimp broodstock (Litopenaeus vannamei and Black Tiger/Penaeus monodon) will decrease from 10% to 5%, on polychaete worms from 30% to 5%, and on shrimp and fish feed from 15% to 5%. Various other inputs, including mineral and vitamin pre-mixes and fish oil, will be exempt from customs duties. The removal of import duties on pre-dust breading powder aims to bolster value-added fish processing.

The Finance Minister also announced the forthcoming National Co-operation Policy, designed to foster systematic development in the cooperative sector. This policy will support the development of fisheries cooperatives, empowering fishers and farmers, enhancing their market linkages, and improving value creation and realization.

Overall, the strategic support outlined in the 2024-25 Budget is set to drive inclusive and comprehensive development in the fisheries sector, boosting production and productivity of fish and related products.