India’s pet food industry is navigating a tale of two trade realities. On one side, rising US tariffs are squeezing exporters and tightening profit margins. On the other, a landmark trade agreement with the United Kingdom is quietly laying the foundation for a more open and opportunity-rich market. For pet food brands, manufacturers, and importers — this shift is anything but small.
The Two Big Trade Shifts Reshaping India’s Pet Food Industry
India’s pet food sector is caught at a crossroads of global trade policy. The United States is making exports harder and costlier, while the UK is gradually unlocking a more accessible and tariff-free future. Understanding both developments is essential for anyone tracking the Indian pet care market.
US Tariffs on Indian Pet Food Jump to 50% — Here’s What Happened
How the New Tariff Came Into Effect
The United States government announced an additional 25% surcharge on Indian imports on August 6, which came into force on August 27. When combined with existing duties, this pushed the total effective tariff on Indian pet food exports to the US to 50%.
The trigger? India’s continued oil trade with Russia — a move that placed India squarely in Washington’s crosshairs. As a result, India has become the most heavily taxed Asian trading partner under the current US tariff regime.
Why This Hurts India’s Pet Food Exporters
The United States is no small market for Indian pet food. In the first half of 2024 alone:
- The US accounted for 20% of India’s total pet food exports by value
- Only Germany ranked higher, capturing a 27% share
- Indian shipments worth $11.9 million were headed to American buyers in just that six-month window
For exporters, even a 10–15% duty hike is difficult to manage. A combined 50% tariff rate is commercially unviable for many businesses in the short term. With this new levy expected to impact roughly 55% of India’s total merchandise exports to the US, the ripple effects extend well beyond the pet food aisle.
India and the US conducted approximately $87 billion in bilateral trade last fiscal year, and trade analysts warn that if tensions persist, India may be pushed to reconsider some of its strategic trade alignments globally.
India-UK Free Trade Agreement: A Long-Term Win for Pet Food
What the FTA Means for Pet Food Specifically
While the US story is one of rising barriers, the India-UK Free Trade Agreement signed in July tells a very different story. This agreement explicitly includes dog and cat food in its list of products set for duty elimination.
Here’s how it works:
- Current import duties on pet food from the UK stand at 22%
- Under the FTA, these duties will be phased out completely over seven years
- The end result: full duty-free access for UK pet food products in India
- The agreement is expected to receive Parliamentary approval and come into force within approximately one year
Which Brands Stand to Benefit?
Well-established British pet food brands that already have a presence in India — including Canagan and Burns Pet Nutrition — are positioned to gain significantly as the phased duty reductions roll out. As each concession kicks in, premium UK pet food will become progressively more competitively priced for Indian consumers.
India’s Pet Food Market Is Growing Fast — and That Changes Everything
Amid all this trade turbulence, one constant remains: India’s domestic pet food market is booming.
- The Indian pet food market is valued at approximately $1 billion in 2025
- It is projected to more than double to $2.2 billion by 2030
- Rising pet ownership, higher disposable incomes, and the growing humanization of pets are all driving this demand
This rapid domestic growth provides a meaningful cushion against the short-term pain caused by US tariffs. It also creates fertile ground for imported premium pet food products as UK duty cuts gradually make those brands more affordable.
Economic Impact: What the India-UK FTA Means on a Larger Scale
The trade deal’s benefits extend far beyond pet food. UK government estimates suggest:
- The FTA will boost UK GDP by 0.13% (£4.8 billion) annually in the long run
- India’s GDP is expected to grow by 0.06% (£5.1 billion) per year as a result
- Import duties on UK goods entering India are projected to drop by £400 million immediately once the deal is activated
- That figure is expected to nearly double to £900 million after ten years
- Meanwhile, duties on Indian exports entering the UK are estimated to fall by around £220 million
These are significant numbers — and they reflect the scale of opportunity that this agreement unlocks for both nations across sectors, including the fast-growing pet care industry.
What Does This Mean for Pet Businesses Right Now?
Short-Term Outlook
- Indian pet food exporters targeting the US market are under real financial pressure
- Higher duty rates are reshaping pricing decisions and deal structures
- Some operators may need to redirect exports to alternative markets in the near term
Medium to Long-Term Outlook
- The India-UK FTA creates a predictable, phased path toward duty-free trade
- British pet food brands will find it progressively easier and cheaper to compete in India
- The growing Indian pet food market offers a large and expanding customer base for premium imports
- Indian exporters may look to diversify toward European and UK markets to offset US losses
Conclusion: A Tough Road West, But a Clearer Path East
India’s pet food industry is living a split-screen moment. The US tariff wall has gone up sharply, creating real short-term pain for exporters who depended on that market. At the same time, the India-UK Free Trade Agreement is steadily opening a new lane — one that promises duty-free access, expanded consumer choice, and long-term growth for premium pet nutrition brands on both sides.
The near-term challenges are real and cannot be brushed aside. But with India’s domestic pet food market growing at an impressive pace and the UK deal offering a structured, time-bound path to lower duties, the long-term outlook for India’s pet food industry remains optimistic.
For pet care brands, importers, and investors — now is the time to watch these trade winds closely and plan accordingly.
