NEW DELHI: India’s annual duty-free steel exports to the United Kingdom are expected to touch the $1 billion mark under the free trade agreement, supported by a higher export quota negotiated ahead of the UK’s safety measures.
The projection follows bilateral negotiations that secured India a favorable quota before the UK implemented its steel safeguard measures on July 1. In the 2026 financial year, India’s steel exports to the UK stood at $900 million.
“This issue came up while we were in the process of implementing the agreement. We raised the safeguard issue with the UK and negotiated on it,” Commerce Secretary Rajesh Agarwal said during a press briefing. “This matter was part of the negotiations, and India’s steel quota is higher compared to other trading partners.”
Under the UK’s safeguard mechanism, any steel exports exceeding the designated quota attract a steep 50 percent tariff.
“Under the TRQ (Tariff Rate Quota) system, the quota we have received is worth about $350 million. Beyond that, there is a residual quota where our companies can compete and secure a large market share,” Agarwal added.
Another government official confirmed that the secured quota is expected to help Indian exporters maintain up to $1 billion in duty-free steel shipments to the UK annually.
The Comprehensive Economic and Partnership Agreement comes into effect on Wednesday. The path to its implementation faced significant turbulence and obstacles following the UK’s announcement of steel safeguards. The impasse prompted a visit to India in June by the UK’s Secretary of State for Business and Trade, Peter Kyle, to resolve the pending issues and clear the way for the deal.
Apart from steel, the trade agreement is set to provide Indian labor-intensive sectors—such as textiles, apparel, footwear, marine products, carpets, and select agricultural goods—with enhanced access to the UK market. In return, the UK will gain broader access to India’s large and protected markets, including automobiles, alcoholic beverages, industrial goods, and government procurement.
