India has received a significantly higher duty-free quota for steel exports to the UK than other exporting countries following a review of market access conditions under the Comprehensive Economic and Trade Agreement between India and the UK (CETA), potentially increasing the value of Indian steel exports to the UK to about $1 billion in fiscal year 2026-27, the minister said. Indian Commerce Minister Rajesh Agarwal in a statement on Wednesday, July 15.
"We have managed to secure a higher quota than other countries," he said.
However, no agreement has yet been reached on the proposed Carbon Boundary Regulation Mechanism (CBAM), which is due to take effect on January 1, 2027, and discussions are ongoing.
"India and the UK continue discussions on the UK's proposed CBAM," Agarwal
Under the revised steel agreement, India has secured duty-free access for approximately $350 million worth of steel exports under the Tariff Quota Mechanism (TRQ), which represents a significant 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 UK protection.
Officials said the expanded quota, combined with access to remaining quota volumes, is expected to help boost steel exports from India to the UK to about $1 billion in fiscal year 2026-27, up from about $900 million in 2025-2026.
The breakthrough came after New Delhi expressed concern about revised British protective measures and trade policies related to carbon emissions, which have reduced duty-free access for many exporting countries. India briefly suspended progress on the trade agreement before both sides agreed to return to the issue of access to the steel market.
Agarwal said the revised steel quota demonstrates the ability of both sides to address industry concerns through dialogue while implementing a broader trade agreement.
The CETA Agreement between India and the United Kingdom, which enters into force on July 15, 2026, provides preferential market access for a wide range of goods and is expected to significantly enhance bilateral relations. trading. While most of India's exports will receive duty-free access to the UK, industry agreements such as the expanded steel quota are expected to provide additional
