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Informist, Tuesday, Jul. 14, 2026

 

--Trade secy: Have negotiated steel exports with UK in FTA 

--CONTEXT: Trade Secretary Agrawal addressing media on India-UK FTA 

--Trade secy: Aiming for India, UK trade to reach $100 bln in 3-4 years 

 

NEW DELHI – India's steel exports to the UK could reach around $1 billion in the financial year 2026-27 (Apr-Mar) after New Delhi renegotiated better quotas for the sector under the free trade agreement, a senior government official said Tuesday. Last month, the UK government had announced a new quota for steel imports to reduce dependence on other countries and to increase domestic production. This was seen as a huge risk to the Indian steel industry. 

 

The official's comment comes a day ahead of the India-UK Comprehensive Economic and Trade Agreement coming into effect, nearly a year after it was signed. The implementation of the agreement was delayed because of the UK's curbs on steel imports. Under the deal, the UK has committed to tariff concessions on 99% of India's exports to the UK. New Delhi has also offered duty cuts on 90% tariff lines.

 

As per the UK's steel quota, which came into effect on Jul. 1, the UK government will limit tariff-free steel imports, reducing overall quota volumes by 51% compared with the earlier steel safeguard measures. Any imports above the country-specific quotas face a tariff of 50%. The measures apply to imports of steel products that can be made in the UK.

 

Separately, Commerce Secretary Rajesh Agrawal told the media that India negotiated steel exports as the UK's safeguard measure announcement came when New Delhi was in the process of operationalising the agreement. "As part of the negotiations, India's quota in steel is comparatively higher as compared to other trading partners," he said.

 

India's steel exports worth around $200 million were beyond quota, which has been secured by New Delhi under tariff rate quota mechanism, Agrawal said. "If you look at our current level of (steel) exports to the UK, around 80% of our exports remain at zero duty," he said. "So, there is no steel quota and that trade remains; 20% of the trade that was getting impacted, the quotas will ensure that those trade lines will not only be maintained but will improve substantially." 

 

Agrawal said the quota that India has got under the tariff rate quota mechanism is worth around $350 million. "And then there is residual quota also where our companies can compete and have a larger market share," he said. India had exported around $900 million worth of steel and related products to the UK in FY26.

 

Agrawal also said the double contributions convention had been extended from three years to five years, allowing eligible temporary workers from both countries to remain covered by their home country's social security system for a longer period. The double contributions convention exempts Indian workers who temporarily move to the UK and their employers from contributing to the host country.

 

On the UK's proposed Carbon Border Adjustment Mechanism, Agrawal said the regulations are still being finalised and discussions between India and the UK are continuing. Further, he reaffirmed India's target of achieving $100 billion worth of bilateral trade with the UK in 3-4 years.

 

In FY26, India and the UK's total trade was to the tune of $25.13 billion, up 9% on year. India exported goods worth $13.44 billion and imported goods worth $11.68 billion.  End

 

US$1 = INR 96.20

 

Reported by Pratiksha

Edited by Rajeev Pai

 

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