The EU–India Free Trade Agreement (FTA), concluded after nearly 18 years of negotiations, could create significant opportunities for smaller petfood companies on both sides of the market.
Covering nearly two billion people and almost a quarter of global economic output, the deal marks the largest bilateral trade pact ever signed by either side. A key element of the agreement is the reduction of tariffs on EU exports entering the Indian market. Under the pact, petfood products will see full duty elimination, bringing tariffs down to zero percent, while processed meat products (excluding raw meat imports) will see tariffs reduced from as high as 110 percent to just 50 percent.
A spokesperson for the European Commission told International Petfood exclusively:
“The agreement represents the most ambitious trade opening that India has ever granted to a trade partner. India will grant the EU tariff reductions that none of its other trading partners have received, eliminating or reducing tariffs on over 96% of EU goods exports.”
Bridging Long-standing Trade Differences
Negotiations first began in 2007 but stalled in 2013 after multiple rounds of talks failed to bridge gaps between the two sides. The EU pushed for tariff elimination on more than 95 percent of its exports, including automobiles, wines and agricultural products. While India was reluctant to fully open sensitive sectors such as agriculture, dairy and manufacturing. The current Agreement includes a bilateral safeguard mechanism, with a targeted response in the unlikely event of market disruption arising directly from the deal.
India: An Untapped Market for EU brands
Currently, trade volumes remain relatively small. In 2024, EU agri-food exports to India were worth just EU€1.3 billion, accounting for only 0.6 percent of the EU’s global agri-food trade, largely due to previously prohibitive tariffs.
For European brands, the opportunity lies in India’s rapidly expanding pet economy. The country’s pet care market was valued at US$3.6 billion in 2024 and is projected to exceed US$7 billion by 2030.
At present, Thailand dominates India’s petfood import market, accounting for nearly 60 percent of imports in FY25. Meanwhile, European brands have seen their share decline significantly, from roughly 50 percent in FY18 to around 20 percent in FY25. Lower tariffs could therefore help European producers regain ground.
Export Opportunities for Smaller Brands
The agreement could also help smaller Indian petfood companies expand into Europe.
Ishmeet Singh Chandiok, founder of Harley’s Corner, India’s first ready-to-eat premium wet dog food brand, says the deal represents a major step forward for domestic producers.
“The signing of the India–EU FTA is a landmark moment for the Indian pet care industry. By eliminating tariffs that previously reached 50%, this deal allows smaller, mission-driven brands like ours to enter the EU. This is our chance to expand our horizons and proudly take ‘Made in India’ premium pet nutrition to the global stage.”
However, accessing the European market comes with its own challenges, particularly when it comes to meeting the EU’s strict health and safety regulations. As the European Commission spokesperson explains:
“The EU has very stringent, science-based standards to protect human, animal and plant health. All products imported from India under the agreement will have to respect these standards.”
According to the Commission, key regulatory considerations include maintaining strong EU health and food safety systems, conducting impact assessments on production standards such as pesticide use and animal welfare along with food safety audits in third countries while reinforcing border controls on imported food, animal and plant products.
Making the Agreement Work for SMEs
While the FTA may open doors, smaller companies will still face practical barriers when navigating export requirements. Chandiok notes that the influx of larger and well-established international brands could increase competition but also raise quality standards across the sector.
“While we welcome the competition from established European brands entering India, we believe it will raise the bar for quality across the board. However, to truly capitalise on this opportunity, we advocate for a ‘one-stop desk’ to guide Indian SMEs through the complex landscape of EU packaging norms and certifications.”
He adds that navigating these requirements has historically been confusing for smaller manufacturers and that a centralised support system could help local brands scale internationally.
The European Commission says the agreement aims to address exactly these concerns.
“SMEs will particularly benefit from the tariff reductions, removal of regulatory barriers, transparency, stability and predictability provided by the Agreement. Among the benefits for small businesses will be the establishment of dedicated contact points on both sides to provide SMEs with relevant information on the FTA and help them with any specific issue they would face when trying to use the FTA’s provisions.”
While regulatory hurdles and compliance requirements remain, the EU–India FTA has the potential to reshape trade opportunities for smaller petfood companies on both sides. For SMEs willing to navigate regulatory frameworks and invest in quality standards, the deal may offer a timely gateway to international expansion as the global petfood sector continues to grow.
