India's seafood industry has shown remarkable resilience, achieving record exports of $8.46 billion in FY26, despite facing significant challenges such as a 50% tariff imposed by the United States. The government is now targeting to boost exports to $30 billion within five years, emphasizing the need for higher value addition and diversification into new markets. However, the sector is currently grappling with a 43% rejection rate in major markets, including the US and EU, due to the presence of banned antibiotic residues, particularly chloramphenicol and nitrofurans. This contamination has been traced back to over 40 shrimp farms, predominantly in Andhra Pradesh. The Central Drugs Standard Control Organisation has mandated stricter inspections and enforcement measures to combat this issue. As India seeks to expand its seafood exports, maintaining compliance with international quality standards is crucial to sustaining growth and trust among overseas buyers. The government’s response indicates an understanding of these stakes, but the industry must also enhance traceability and monitoring to prevent future violations.