Could India’s pet food sector gain from government processing and production schemes?

The Indian pet food market has become one of the “fastest-growing” consumer goods industries in the South Asian country, as reported by the Ministry of Food Processing Industries. 

According to the government, the pet food market reached $2.4 billion (€2.1B) in 2024 and could reach $4.6 billion (€4B) by 2033.

The changes stemmed from a socioeconomic transformation and a more mature market, but they can grow further with fiscal and financial incentives and measures recently launched to create a more favorable business environment.

Underexplored market 

In a document presented in September, the Indian government highlights opportunities, especially in markets that are underexplored: natural and organic pet foods, as it says that India is still “catching up” with the global trends, and food for cats, birds, fish and small animals, “which remain underserved.”

Another emerging area in the country is the production of premium pet food, leading to a large share of it being imported. This opens up opportunities for international companies to establish factories in the country to lower costs in the domestic market.

In a report about the Indian market, the law firm Rödl & Partners also points to an increasing demand for functional treats and nutraceuticals, with a “higher willingness to invest in preventive, specialty and therapeutic nutrition.”

Where do incentives come in?

In recent years, the Indian government has launched a few initiatives to develop the food sector at the federal level. Although none of them are specifically for pet food, companies in the sector fall within the spectrum.

“These schemes aim to modernize infrastructure, enhance competitiveness and attract investment for the food processing sector, where stronger participation of pet food manufacturers could be beneficial to the overall industry growth”, reads the Rödl & Partners analysis. 

One of them is the Pradhan Mantri Kisan Sampada Yojana (PMKSY), which supports infrastructure projects such as mega food parks, integrated cold chain, agro-processing clusters, and safety and quality assurance facilities. 

Another scheme is the Formalization of Micro Food Processing Enterprises (PMFME), implemented from 2020 to 2025. It is a “centrally sponsored initiative,” the ministry says, with an outlay of $1.2 billion (€1B). 

The program offers financial, technical and business support to micro food processing enterprises in branding and marketing, strengthening of institutions and project management framework. 

“It has direct implications for Indian pet food startups and international brands operating through joint ventures or contract manufacturing,” the law firm says. 

Production scheme 

And finally, there’s the Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI), with a budget of 10,900 crore ($1.2B/€1B) to be implemented until 2028. It aims to scale the sector’s manufacturing capacity and competitiveness in global markets by branding and marketing abroad.

To strengthen its exports, the country revised its export policy for animal by-products (including cat and dog food) in September to align with EU regulations, mandating post-mortem inspection by the veterinary authority and the issuance of a certificate. 

The projects can benefit pet businesses as well. In another document published in September, the ministry even cites the example of Mars, which invested ₹800 crore ($90.2M/€77.9M) in expanding its Siddipet manufacturing facility in Telangana state in 2023. 

Application to the pet industry

The challenge is that there are no guarantees or sufficient data on how many pet businesses have actually been assisted.

“Although specific figures for pet food manufacturers are not publicly broken out, it’s apparent some government schemes have provided support,” Ankur Jain, Director of Indian pet industry consultancy Puppy Atlas, says to GlobalPETS.

“The government’s incentives have fundamentally changed the landscape of the pet industry,
opening up a bifurcated market opportunity. For foreign-owned firms and larger domestic businesses, there are significant financial benefits.”