The World Ocean Day got over on June 8, but it is time to take stock of our fishing and marine aquaculture ecosystem. Thanks to India’s 11,098 km-long coastline as well as a multitude of rivers and other inland water bodies, fishing contributes to nearly 1.1 per cent of our GDP. Over 30 million livelihoods are dependent on fishing. We exported seafood worth ₹60,523.89 crore during 2023-24.

Meagre livelihood, not a major enterprise

Yet, much of India’s fisheries economy remains stuck in subsistence mode. For the majority of fishermen, income stagnation and volatility remain persistent challenges. Industrialisation in this sector is negligible, and the value chain remains fragmented and unorganised.

Contrast this with the action around start-ups and MSMEs. Targeted interventions such as Startup India, Mudra loans and dedicated incubators, have unleashed a wave of innovation. In manufacturing, MSMEs account for 30 per cent of GDP and employ over 110 million people. Start-ups have gone on to become unicorns. However, the action in fisheries is nearly negligible.

Question is – how can we enable these millions of fishermen to become more entrepreneurial?

Fish FPOs and cooperatives: Aggregation as the first step

The transformation from fishermen to “fish businessmen” begins with aggregation. Just as Farmer Producer Organisations (FPOs) have changed the landscape of agriculture, Fish FPOs (or FFPOs) can enable collective bargaining, reduce input costs and provide a platform for scaling up operations. However, creating FFPOs is merely the beginning.

Capacity building for fish-preneurs and FFPOs: Need a strong foundation

Having a strong professional management at the top is critical. Educating the fish-preneurs about value addition, evolving customer demands (especially in the exports market), sustainable fishing aquaculture practices, digital developments and so on, is critical to help them scale.

If there can be one digital platform for the fishermen to get trained as well as access all the schemes they are eligible for, get information on market linkage, weather alerts, etc, it would make their life a lot easier. Also, with digital records of their activities, enabling credit and digital payments would also be more effective.

Value addition can lead to value multiplication

Small fishermen often sell raw fish at local harbours for throwaway prices. Imagine if they could clean, fillet, freeze or dry the catch—extending shelf life and multiplying income. Smoking, marinating and packaging are other possibilities. Community-based mini-processing units, solar dryers for fish, ice plants and blast freezers can radically improve the economics of fishing.

Low-value fish can be converted into fishmeal, fish oil or local delicacies, enhancing their marketability and returns. Shrimp exports alone could grow to nearly $10 billion with more processing as ready-to-eat items.

Some FPOs and self-help groups (SHGs) have successfully made and sold products like fish pickles, dry fish powder and prawn cutlets. These examples must be institutionalised and scaled.

Apart from traditional processing, enabling technology – such as blockchain-based traceability – can also help the fish farmers earn a premium.

Need for strong infrastructure

Be it for selling raw fish, or for processing, the fish farmers and FFPOs need basic cold chains, processing units and transportation equipment geared for safely storing marine items. Establishing coastal and inland hubs with shared access to cold chains, processing units, quality testing labs and packaging facilities can be huge help.

Financing: Major constraint to be made a major enabler

First, to really make a push for increased and value-added-exports, more subsidies and incentives should be provided to FFPOs. More grants are needed to drive innovation in this space and support early stage entrepreneurs.

However, the current reality is that access to working capital itself remains a constraint. Credit flow to fisheries is stymied by lack of collateral, irregular cash flows and weak documentation. A targeted Blue Entrepreneurship Credit Guarantee Scheme—akin to the CGTMSE for MSMEs—can enable banks to lend without fear. Digital credit scoring using catch records, e-logbooks and GPS data can offer innovative ways to underwrite risk.

Many schemes already exist. Agriculture Infrastructure Fund (AIF) supports cold infrastructure, including fish; production-linked incentive (PLI) schemes include fish processing; The Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) scheme supports agri-processing and it specifically mentions some districts as fish focused, as part of One District One Product (ODOP) program. However, these schemes have not seen full saturation in the market. There is a clear need for awareness development and adoption promotion activities.

Bringing it all together: Policy convergence

The government should relook at all existing schemes and policies for fish farmers. They should align PMMSY with schemes across MSME, startup India, PLI, PMFME, Blue Economy, etc. to ensure integrated development of fish and aquaculture economy.

Conclusion: From net to net-worth

It is time to shift our gaze—from the ocean as a source of survival to a platform for prosperity. Fishermen are not just beneficiaries of aid; they are potential entrepreneurs, traders, exporters and innovators. But for them to leap from nets to net-worth, we must build the scaffolding—through credit, skilling, aggregation and technology.

The author is Managing Director - Agriculture and Climate Practice, Primus Partners.

Published on June 14, 2025