India has secured safeguards for its steel exports under the India-UK free trade agreement and remains confident that exporters will not lose market access despite the UK's recently introduced steel safeguard measures, government officials said on Thursday.
The comments come as both countries complete the ratification process for the trade deal, which is set to come into force on July 15.
Officials said nearly 85% of India's steel exports to the UK remain outside the scope of the UK's safeguard regime. While 188 steel tariff lines are covered by the measures, India and the UK have arrived at a mutually acceptable arrangement to ensure continued market access, including for products falling within the affected categories.
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"The concerns around steel have been addressed and India will not lose market access," a government official said, describing the outcome as balanced.
The government also sought to allay concerns around the UK's proposed Carbon Border Adjustment Mechanism (CBAM), which has emerged as a key worry for Indian exporters across sectors.
Officials said the UK has not yet finalised its CBAM framework and discussions are still underway within the British government. India will engage with the UK once the final contours of the mechanism emerge.
"The pathway on CBAM is not yet finalised by the UK. Once the final picture emerges, India will negotiate and engage," an official said, adding that the trade agreement contains institutional mechanisms to address such future trade challenges.
The FTA, which takes effect from July 15, is expected to provide a significant boost to Indian exports. More than 99% of Indian exports will enter the UK at zero duty, placing Indian exporters on par with competitors that already enjoy preferential access to the British market.
Government officials estimate Indian exporters could gain an additional tariff advantage of 7-10% across several sectors. India currently exports around $15 billion worth of goods to the UK annually.
The agreement also expands social security benefits for Indian professionals working in the UK. The exemption period under the Double Contribution Convention has been extended from three years to five years, benefiting over 75,000 Indian workers and more than 900 Indian companies operating in the UK.
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According to government estimates, the social security provisions alone could deliver benefits exceeding $500 million to Indian professionals and companies in the UK.
India has now begun work on customs notifications and implementation procedures to ensure exporters can start availing FTA benefits from July 15.
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