New EU-India free trade agreement to boost pet food access

Nearly 2 decades after negotiations began in 2007, the European Union (EU) and India concluded a free trade agreement (FTA) on 27 January, amid a period of reconfiguration of international trade.

According to the European Commission, the EU–India FTA is the largest trade deal ever concluded by either side. The 2 markets currently trade more than €180 billion ($196B) worth of goods and services annually.

Within 6 years, the agreement is expected to double the EU goods flow to India by eliminating or reducing tariffs on 96.6% of EU exports. Overall, the tariff reductions are projected to save approximately €4 billion ($4.36B) in annual duties on European products.

Impact on the pet food trade

Tariffs on pet food, currently as high as 50%, will be eliminated under the agreement, improving the price competitiveness of European products and enabling broader distribution in the Indian market.

According to the Ministry of Food Processing Industries, among European Union companies operating in the country, the Italian producer Farmina Pet Foods is a key player in the Indian pet food market.

European pet food exports to India were valued at €73 million ($79.6M) in 2024 – the latest year with available data – representing 0.95% of total EU pet food exports and ranking India as the 26th export destination by value. Exports to the country increased 19.7% from 2023.

On the import side, India ranked 12th in 2024, with pet food imports reaching €30 million ($32.7M) and accounting for 1.05% of total trade. It represents a 20% increase from 2023 and more than 3 times the value from 5 years before, in 2020.

Agri-food commerce

The FTA will remove or reduce often ‘prohibitive tariffs’ on EU agri-food exports while protecting sensitive sectors. For instance, beef, chicken, rice and sugar will remain subject to tariffs, and all Indian imports will still be required to comply with the EU’s health and food safety standards.

Indian levies on agri-food products average 36% and can reach up to 150%. Under the agreement, these duties will be significantly reduced. For example, Indian duties on wines will be cut from 150% to 75% upon entry into force and then gradually reduced to 20%-30%, depending on price range.

Negotiations with the US

India and the US also reached a deal. On 6 February, the countries agreed on a framework for an interim trade agreement and declared a mutual commitment to work toward the US-India Bilateral Trade Agreement (BTA) negotiations. 

According to the White House, “President Trump agreed to remove the additional 25% tariff on imports from India in recognition of India’s commitment to stop purchasing Russian Federation oil,” the communication says. 

Last year, the US imposed an additional levy on all Indian imports on top of an existing 25% duty. In addition to eliminating the extra duty, the US lowered the Reciprocal Tariff on India to 18%.

One of the key points of the negotiation is that the Asian country committed to eliminating or reducing tariffs on all American industrial goods and “a wide range” of food and agricultural products, and to purchasing over $500 billion (€420B) in goods.

Pet food trade between the countries

According to data from the US Department of Agriculture, exports of cat and dog food to India declined significantly last year compared with 2024. From January to November, exports were valued at $468,000 (€393K), 40% less than the same period in 2025, when they reached $783,000 (€657K).

Although India is not a significant destination for American dog and cat food production, the US accounted for one-fifth of India’s pet food exports by value during H1 2024.