Union Budget 2024-25: Fisheries Sector Gets ₹2,616.44 Crore Boost for Innovation and Growth

New Delhi: Amidst a global economy with a positive outlook yet political uncertainties, India’s economic growth continues to be robust with a low and stable inflation rate. The growth is expected to remain strong in the years ahead. The Indian Fisheries sector, termed the ‘sunrise sector’ of the Indian economy, has been experiencing the highest average decadal growth of 8.9% (FY 2014-2023) among allied sectors under Agriculture and continues to expand at a healthy pace.

India is currently the second-largest fish-producing country, holding around an 8% share in global fish production with a record high of 174.45 lakh tonnes in 2023-24. India also ranks second in aquaculture production and is one of the top shrimp-producing and seafood-exporting nations globally. The sector provides sustainable livelihoods to over 30 million people, mostly within marginalized and vulnerable communities.

With the motto of ‘Reform-Perform-Transform,’ the Government of India continues to prioritize the development of the fisheries sector as a key driver toward a Viksit Bharat by 2047. Continuing its commitment to transformative schemes and initiatives, the Budget Announcement 2024-25 has significantly increased the budget allocation for the fisheries sector, addressing the major challenge of high operational and production costs.

The Department of Fisheries has been allocated Rs. 2,616.44 crore for the year 2024-25, a 54% increase from the Rs. 1,701.00 crore (Revised Estimate) in 2023-24. Specifically, Rs. 2,352 crore has been allocated for the Pradhan Mantri Matsya Sampada Yojana (PMMSY) scheme, a 56% increase from the Rs. 1,500 crore allocated in 2023-24.

To ensure the availability of quality brood for quality seed, Finance Minister Smt. Nirmala Sitharaman announced financial support for establishing a network of Nucleus Breeding Centres (NBC) for shrimp broodstock. Financing for shrimp farming, processing, and export will be facilitated through NABARD. These state-of-the-art NBCs will improve the genetic quality of aquaculture species, enhance productivity and quality, and reduce dependence on imported shrimp broodstock. This initiative is poised to promote the shrimp industry significantly, with shrimp exports having grown from Rs. 8,175 crore in 2011 to Rs. 40,013 crore in 2023-24.

Under the Fisheries Infrastructure Development Fund (FIDF), concessional finance support will be provided to private entrepreneurs and investors for setting up shrimp aquaculture facilities, processing plants, and export-related infrastructure. Investments in infrastructure, technological adoption, and improved fisheries practices will lead to higher production, better quality, and increased efficiency across the shrimp value chain. Enhanced production of quality shrimp value-added products will meet both global and domestic market demands.

To further strengthen India’s shrimp farming industry globally, import duty reductions on key inputs are proposed to lower production costs and increase revenues and profit margins. Basic Customs Duty (BCD) on shrimp broodstock will be reduced from 10% to 5%, on polychaete worms from 30% to 5%, and on shrimp and fish feed from 15% to 5%. Additionally, various inputs like mineral and vitamin pre-mixes, krill meal, fish lipid oil and crude fish oil, algal prime (flour) and algal oil, artemia and artemia cyst have been exempted from custom duties.

To enhance India’s position in value-added fish processing, import duties on pre-dust breading powder have been removed. The Finance Minister also announced a National Co-operation Policy for systematic and orderly development of the co-operative sector. Development of Fisheries Co-operatives as per this policy will empower fishers and fish farmers, enhancing their bargaining power and facilitating better market linkages.