- Around 80 per cent of India's steel exports to the UK will remain outside Britain's safeguard restrictions.
- India secured steel quotas worth about $350 million, compared with the UK's average allocation of $200 million for many trading partners.
- The government expects steel exports to the UK to reach $1 billion in FY27.
India expects its steel exports to the UK to touch $1 billion in FY27 after securing improved market access under the India-UK Free Trade Agreement (FTA), with the government saying the negotiated terms place Indian exporters in a stronger position than many of Britain's other trading partners.
Speaking at a press briefing, Commerce Secretary Rajesh Agrawal reportedly said India resolved one of the most difficult issues during the trade negotiations by securing more favourable steel safeguard quotas. He said nearly 80 per cent of India's steel exports to the UK would remain outside Britain's safeguard measures, allowing them to continue entering the market without additional restrictions.
The agreement comes into effect on July 15.
Quota advantage expected to lift exports
Britain introduced a revised steel safeguard regime on July 1, cutting tariff-free import quotas by 51 per cent and increasing the out-of-quota tariff from 25 per cent to 50 per cent.
Despite the stricter rules, India secured quota allocations worth around $350 million across nearly 100 steel tariff lines, compared with the UK's average quota allocation of around $200 million for many other trading partners, Agrawal reportedly said.
The remaining 20 per cent of India's steel exports will be covered under these negotiated quotas, which the government believes are sufficient to maintain and potentially expand shipments.
India exported nearly $893.4 million worth of iron, steel and related products to the UK in FY26, and officials expect exports to increase once businesses begin using the FTA's preferential market access.
Agrawal also said the Double Contributions Convention (DCC) under the agreement has been extended from three years to five years, allowing eligible temporary workers from both countries to continue contributing to their home country's social security system instead of paying in the host country.
On the UK's proposed Carbon Border Adjustment Mechanism (CBAM), which is due to begin on January 1, 2027, Agrawal reportedly said the regulations are still being finalised and discussions between India and the UK are continuing to protect the interests of Indian exporters.
