Commerce Secretary Rajesh Agrawal announced that the India-UK Free Trade Agreement is expected to significantly boost India's steel exports to the UK to $1 billion in FY27. Speaking at a press briefing, Agrawal highlighted that the FTA, combined with improved market access secured during negotiations, will drive substantial growth in steel trade between the two countries. According to the Commerce Secretary, this represents a major opportunity for India's steel sector to expand its presence in the UK market. India's steel exports to the UK were around $900 million in FY26, and the new agreement is expected to push this figure to the $1 billion mark annually. As per the latest data, India's exports of iron and steel and their products to the UK stood at $893.4 million in 2025-26, accounting for a significant share of $13.4 billion in total merchandise exports to the UK. The agreement comes into force on July 15, 2026, marking the sixth free trade agreement brought into force during the Narendra Modi government's tenure.
India has secured better-than-average steel quotas under the UK FTA, with Commerce Secretary Rajesh Agrawal confirming that nearly 80% of India's steel exports to the UK will not be subject to the UK's safeguard measures. This means that the vast majority of India's steel products will continue to enjoy uninterrupted market access without facing the safeguard restrictions that other UK trading partners may face. The remaining 20% of exports, covering around 100 steel product lines, will be protected through negotiated quota arrangements under the FTA framework. Under the UK's safeguard measures, exports of steel beyond the specified quota will attract a duty of 50%. India's steel exports worth around $200 million were beyond the quota, which has been secured by New Delhi under the tariff-rate quota (TRQ) mechanism. "The quota that we have received under the TRQ mechanism is worth around $350 million. And then there is a residual quota also where our companies can compete and have a larger market share," Agrawal explained. About 85% of India's steel exports to the UK were already exempted from Britain's steel safeguard rules, while market access for the remaining shipments has been secured through a mix of measures such as country-specific and residual quotas under the bilateral trade pact.
The Central Board of Indirect Taxes and Customs (CBIC) has issued detailed operational guidelines for implementing the self-certification system under the India-UK Comprehensive Economic and Trade Agreement (CETA), which comes into force on July 15. The India-UK Comprehensive Economic and Trade Agreement (CETA) will take effect on Wednesday following considerable ebb and flow due to hurdles in implementation after the UK announced steel safeguard measures. Both sides held several rounds of discussions, including a visit to New Delhi by the UK's Business and Trade Secretary Peter Kyle in June to iron out the sticking points and implement the deal. To compensate for the steel safeguard measures, India has also secured an increased exemption period of five years under the complementary Double Contribution Convention (DCC) with the UK, according to Agrawal. Under the DCC, which will also take effect on Wednesday, the UK will exempt Indian intra-corporate transferees and their employers from paying social security contributions for five years, extending the earlier agreed exemption period of three years. The implementation of the pact was delayed due to the UK's steel safeguard measures, which were announced in March and apply to all countries, cutting duty-free steel import quotas by 60% from July 1, with imports above the prescribed limits subject to a 50% tariff from 25% at present.
In a significant development to facilitate the India-UK Free Trade Agreement implementation, the Central Board of Indirect Taxes and Customs (CBIC) has issued comprehensive customs procedures and operational guidelines. The CBIC has outlined customs procedures, Origin Declaration requirements and transitional relief for importers under the India-UK FTA effective July 15. Under the notified framework, importers seeking concessional duty benefits under the FTA will be required to furnish an authenticated Origin Declaration issued in accordance with the agreement. The declaration will serve as proof that the imported goods satisfy the prescribed rules of origin, making them eligible for preferential tariff treatment. The CBIC has also provided transitional relief for importers by extending benefits to eligible consignments that are already in transit or remain under customs control on the date the agreement comes into force. Such shipments can claim reduced customs duties, provided they comply with the conditions laid down under the trade pact. In another significant clarification, the tax authority said goods lying in bonded warehouses before the implementation date will also qualify for preferential tariff treatment, though benefits will be available only if all FTA requirements are fulfilled before goods are cleared for home consumption.
The India-UK Comprehensive Economic and Trade Agreement (CETA) provides duty-free market access for almost 99% of Indian exports to the UK market, with the agreement considered one of India's most significant trade deals in recent years. According to the Commerce Secretary, 98% of goods from India can enter the UK without any duty starting July 15. The FTA will benefit multiple sectors including farmers, fisherfolk, and various occupational communities, as it opens wider access in various segments. As per the Commerce Secretary, duties as high as 12% will come down to 0% under the new agreement. Additionally, the FTA will protect sensitivities in various Indian sectors with duties on Textile, leather and footwear, electrical machinery, and auto parts being abolished from as high as 18% earlier, ensuring comprehensive market access for Indian exporters while maintaining strategic protection for domestic industries. On the import side, lower tariffs on British products including salmon, lamb, machinery, electronics, chocolates, soft drinks, cosmetics, and perfumes could result in lower prices for consumers in India.
The India-UK Comprehensive Economic and Trade Agreement (CETA) allows duty-free entry for nearly 99% of Indian exports to the British market, with labour-intensive sectors experiencing significant benefits. Garments, textiles, footwear, carpets, processed foods, cereals, fruits, vegetables, spices, fish and meat products will now enter the UK duty-free, replacing tariffs that previously ranged between 4% and 16%. Greater market access for sectors including automobiles and auto components, machinery, electronics, fabricated metal products, ceramics, glass, stone and cement products will aid their international exposure and sales, providing substantial opportunities for India's manufacturing and export-oriented sectors. India is expected to gain improved access to the UK market for labour-intensive exports such as textiles, garments, footwear, carpets, seafood, automobiles, and certain agricultural products. The agreement also provides significant benefits to Britain's aerospace sector, with the UK's main gains concentrated in sectors such as precious metals, aerospace, premium automobiles and alcoholic beverages.
