Budget 2025-26: Record Allocation to Boost Fisheries Sector

This overall allocation for the financial year 2025-26 has increased by 3.3% in comparison to the allocation of Rs. 2,616.44 crore (BE) made during last year 2024-25. This includes the allocation of Rs. 2,465 crore for Pradhan Mantri Matsya Sampada Yojana during the year 2025-26 that has increased by 4.8% in comparison to the allocation made for the scheme during the year 2024-25 (Rs. 2,352 crore). Union Finance Minister Smt. Nirmala Sitharaman in her budget speech, highlighted India’s achievement as a leader in aquaculture and seafood exports. The budget announcement strategically focuses on enhancing financial inclusion, reducing financial burden on farmers by reducing custom duties and furthering development of the marine fisheries.

The Budget 2025-26 highlights enabling a framework for sustainable harnessing of fisheries from Exclusive Economic Zone (EEZ) and High Seas with special focus on Lakshadweep and A&N Islands . This will ensure sustainable harnessing of the untapped potential of the marine fish resources in the Indian EEZ and adjacent High Seas for growth in the marine sector. As India has an EEZ of 20 lakh sq. km and a long coastline of 8,118 km with estimated marine potential of 53 lakh tonnes (2018) and dependence of 50 lakh people for their livelihoods on the marine fisheries sector. This offers an enormous scope and potential for harnessing of high valued tuna and tuna like species in the Indian EEZ, especially around the Andaman & Nicobar and Lakshadweep Islands. Government will promote Deep Sea Fishing with capacity development and support acquisition of Resource-Specific Fishing Vessels.

Development of fisheries in Andaman & Nicobar Islands will target harnessing of its EEZ area of 6.60 lakh sq. km (1/3^rd of Indian EEZ) with marine fisheries potential of 1.48 lakh tonnes including potential of 60,000 tons for tuna fisheries. For this purpose, development of Tuna Cluster has been notified and activities such as establishment of on-board processing & freezing facilities in tuna fishing vessels, licensing for deep-sea tuna fishing vessels and single window clearances by the Andaman & Nicobar Administration, harnessing opportunities in sea cage culture, seaweed, ornamental and pearl cultivation have been undertaken. The Development of Fisheries in Lakshadweep Islands will target harnessing of its EEZ area of 4 lakh sq. km (17% of Indian EEZ) and lagoon area of 4200 sq mt with potential of 1 lakh tonnes including potential of 4,200 tonnes for tuna fisheries. For this purpose, development of Seaweed Cluster has been notified and activities such as island-wise area allocation and leasing policy with end-to-end value chain by Lakshadweep Administration, formation of women Self Help Group (SHGs) and capacity building through ICAR Institution in collaboration with private entrepreneurs and Lakshadweep Administration, harnessing opportunities in tuna fishing and ornamental fish farming have been undertaken.

In the Union Budget 2025, the Government of India increased the Kisan Credit Card (KCC) lending limit from ₹3 lakh to ₹5 lakh to enhance credit accessibility for fishers, farmers, processors and other fisheries’ stakeholder. This move aims at streamlining the flow of financial resources ensuring that necessary funds are easily accessible for fulfilling working capital requirements of the sector. Enhanced credit availability will support adoption of modern farming techniques and strengthen rural development and economic stability, reinforcing the government’s commitment to making institutional credit more inclusive and accessible.

To enhance Indias competitiveness in global seafood market and to increase the share of value -added products in our export basket, Union Finance Minister proposed to reduce Basic Custom Duty (BCD) on frozen fish paste (surimi) from 30% to 5% for manufacturing and export of value-added seafood products like Imitation Crab Meat Sticks, Surimi Crab Claw Products, Shrimp analogue, lobster analogue and other surimi analogue or Imitation products etc. Further, to strengthen the Indian shrimp farming industry globally, import duty reduction from 15% to 5% on fish hydrolysate an important input for manufacturing of aquafeed has been announced. This is expected to lower production costs and increase revenue and profit margins for farmers, thereby improving and increasing exports.

Termed as one of the key ‘sunrise sectors’ of the Indian economy, the Indian Fisheries sector continues to make its mark and grow at a very healthy pace registering the highest average annual decadal growth of 9.08% in value of output (FY 2014-15 to 2022-23) amongst allied sectors under Agriculture (Niti Aayog Report 2024). This growth story is marked by India’s global ranking as 2nd largest fish producing country with ~8% share in global fish production and a record high fish production of 184.02 lakh tonnes (2023-24). India also stands 2nd in aquaculture production with 139.07 lakh tonnes in 2023-24 and is one of the top shrimp producing and seafood exporting nations in the world with a total export value of Rs 60,524 crore (2023-24). The sector provides sustainable livelihoods to over 30 million people within the marginalized and vulnerable communities. With the motto of ‘SabkaSaath, SabkaVikas, Sabka Vishwas, Sabka Prayas’, Government  of India continues to prioritise the development of the fisheries sector as a key driver towards Viksit Bharat by 2047.