New Delhi, Dec. 10 -- Bangalore-based French teacher Anwesha Dey, 38, has two dogs, Luffy, 3, and Guppy, 1, and she refers to them as her babies. Her life revolves around them-and so do her finances.

"My monthly budget is shaped by this philosophy. I allocate the most significant portion to uncompromising nutrition-premium raw materials and high-quality supplements, which I often import. While this is a considerable expense, it reflects my commitment to placing my dogs' health and needs above all else."

Before bringing a pet home, it is important to understand the long-term costs and responsibilities involved.

For an urban middle-class family, a dog or cat typically takes up 5-8% of annual household income if well cared for. "Depending...