Chief Minister N. Chandrababu Naidu urges the Centre to reduce GST on aquaculture from 18% to 5% while seeking export incentives and a regional fisheries office to strengthen India’s seafood sector.
The Andhra Pradesh Government has urged the Central Government to reduce the Goods and Services Tax (GST) on aquaculture from 18% to 5%, a move aimed at lowering production costs and enhancing the competitiveness of India’s shrimp farming industry. The proposal was submitted by Chief Minister N. Chandrababu Naidu to Union Finance Minister Nirmala Sitharaman as part of broader efforts to strengthen the country’s aquaculture sector.
The state government highlighted that shrimp farmers are facing increasing financial pressure due to rising input costs, including feed, seed, equipment, and other farming essentials. A reduction in the GST rate is expected to ease this burden, benefiting shrimp farmers as well as hatcheries, feed manufacturers, processors, and other businesses across the aquaculture value chain.
In addition to seeking tax relief, Andhra Pradesh has requested the establishment of a National Fisheries Development Board (NFDB) regional office in the state. As one of India’s leading aquaculture hubs, a regional office would improve coordination, accelerate the implementation of fisheries development programmes, and provide better technical assistance to farmers and seafood businesses.
The state has also appealed to Union Commerce Minister Piyush Goyal for targeted incentives to promote aquaculture exports. Enhanced export support is expected to improve the global competitiveness of Indian seafood products, particularly shrimp, while helping exporters expand into international markets and increase foreign exchange earnings.
India’s aquaculture industry is a major contributor to employment, rural livelihoods, and seafood exports, with shrimp accounting for a significant share of the country’s marine product exports. Industry stakeholders believe that policy measures such as lower taxation, stronger institutional support, and export-focused incentives can improve farm profitability, encourage investment, and accelerate sustainable sector growth.
If approved, the proposed reforms could provide substantial relief to aquaculture businesses, strengthen India’s seafood export ecosystem, and reinforce the country’s position as one of the world’s leading producers and exporters of farmed shrimp.