India has secured a significantly larger duty-free quota for steel exports to the UK than other exporting countries after renegotiating market access under the India-UK Comprehensive Economic and Trade Agreement (CETA), potentially raising the value of Indian steel exports to the UK to around $1 billion in the 2026-27 fiscal year, Indian commerce secretary Rajesh Agarwal said in a statement on Wednesday, July 15.
“We have been able to secure a higher quota compared to other countries,” he said.
However, no agreement has yet been reached regarding the proposed Carbon Border Adjustment Mechanism (CBAM), which is scheduled to take effect on January 1, 2027, and discussions remain ongoing.
“India and the UK are continuing discussions on the UK’s proposed CBAM,” Agarwal said.
Under the revised steel arrangement, India has secured duty-free access for steel exports worth around $350 million under the tariff-rate quota (TRQ) mechanism, representing a substantial increase from the historical average quota level of approximately $200 million.
Steel shipments within the quota will continue to enjoy preferential access, while exports exceeding the quota will be subject to the UK’s safeguard duty.
Officials said the expanded quota, combined with access to residual quota volumes, is expected to help increase India’s steel exports to the UK to around $1 billion in the 2026-27 fiscal year, compared to approximately $900 million in 2025-26.
The breakthrough came after New Delhi raised concerns over the UK’s revised safeguard measures and carbon-related trade policies, which had reduced tariff-free access for many exporting countries. India briefly paused progress on the trade agreement before the two sides agreed to revisit steel market access.
Agarwal said the revised steel quota demonstrates the two sides’ ability to address sector-specific concerns through dialogue while implementing the broader trade agreement.
The India-UK CETA, which comes into force on July 15, 2026, provides preferential market access across a wide range of goods and is expected to substantially boost bilateral trade. While most Indian exports will receive duty-free access to the UK, sector-specific arrangements such as the expanded steel quota are expected to provide additional benefits to industries affected by safeguard measures.