- India and the UK are close to operationalising their free trade agreement
- UK’s new steel import safeguards pose a challenge to finalising the FTA
- UK plans to cut tariff-free steel quotas by nearly 60% from July 2026
India and the UK are close to operationalising their long-awaited free trade agreement, but newly announced British safeguard measures on steel imports have emerged as a key sticking point in the final leg of implementation
According to Commerce Secretary Rajesh Agrawal, both sides are now attempting to find a "creative solution" to address concerns arising from the UK's latest steel trade measures, which were not part of the landscape when the FTA negotiations were concluded.
The issue has gained urgency after the UK announced that tariff-free steel import quotas would be cut by nearly 60% from July 1, 2026, compared with existing safeguard levels. The move is aimed at protecting domestic steel producers amid rising global trade pressures and excess capacity concerns.
Indian officials are understood to have flagged that the revised quota framework could dilute expected gains for Indian steel exporters under the trade pact and create uncertainty for shipments just as businesses prepare for the agreement's rollout.
Despite the fresh friction point, both sides remain committed to operationalising the agreement and are working to ring-fence the broader deal from sector-specific trade tensions.
The India-UK FTA is expected to significantly expand market access across goods and services, while also deepening cooperation in areas such as mobility, technology, investment and clean energy.
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