India wins big with duty-free access for 11 lakh tonnes of a key industrial metal under UK trade pact

Indian steel exporters will be able to ship more than 11 lakh tonnes of steel to the UK each year without paying import duty under the India-UK Comprehensive Economic and Trade Agreement (CETA), which came into effect on Wednesday, after New Delhi negotiated enhanced market access despite Britain's steel safeguard measures.

The UK's steel safeguard regime, introduced in March, had emerged as one of the key hurdles to operationalising the trade pact signed on July 24, 2025. With both sides resolving the issue, the agreement has now been implemented from July 15.

Also read: India-UK FTA explained: No new work visa, but these professionals benefit

According to a government official, India secured duty-free access through a combination of country-specific quotas and the UK's Authorised Use Scheme (AUS), ensuring continuity of exports while expanding access across several product categories.


A total of 188 steel products, representing exports worth USD 137 million to the UK, were covered under Britain's safeguard measures. India's overall steel exports to the UK stood at USD 960 million in 2025.

To address concerns over the impact of the safeguards, India held extensive discussions with the UK and sought higher quota allocations after consultations with domestic stakeholders.

"After prolonged and intense discussions at all levels between the two sides, India has been able to secure robust market access and continuity for Indian exporters," the official said.

"As a result of these successful negotiations, India's total country-specific quota (CSQ) under the new framework stands elevated at 1,68,029 tonnes, seamlessly complemented by the exclusive 9.45 lakh tonnes under the Authorised Use Scheme (AUS)," the official added.

As part of the revised arrangement, the UK has widened tariff-free access across several key steel categories. The country-specific quota for non-alloy and other alloy hot-rolled sheets and strips has increased to 33,456 tonnes from 12,405 tonnes.

Also read: UK-India pact to shield working professionals from dual social security taxes

India has also secured an exclusive 40% share of the quota available under the Authorised Use Scheme, equivalent to nearly 9.45 lakh tonnes of annual trade volume.

In Category 28, covering non-alloy wire, the UK has removed nine commodity codes from the safeguard measures, allowing around 95% of India's exports in that category to continue without restrictions.

The agreement also provides higher residual quotas in other segments. Under Category 12B, covering non-alloy merchant bars and light sections, the residual quota has been raised to 4,540 tonnes from 468 tonnes. For Category 26, covering other welded tubes, the quota has increased to 16,327 tonnes from 10,809 tonnes.

(With inputs from PTI)