Steel Exports poised to Hit $1 Billion Mark as India Secures Favorable UK Quota Deals

Steel Exports poised to Hit $1 Billion Mark as India Secures Favorable UK Quota Deals​

Indian steel exporters are set for a significant boost in trade with the United Kingdom. New Delhi has successfully negotiated improved quotas under the UK's tariff-rate quota (TRQ) system, suggesting that Indian exports could reach $1 billion by FY27. This development comes as India strengthens its market access following recent negotiations with the British trading partner.

Securing Advantage in UK Steel Quota Negotiations​

A senior government official confirmed that despite the UK’s stricter steel import regulations, India has secured substantially better quotas compared to the average export value. The existing quota for India amounts to about $350 million, which is considerably higher than the previous $200 million average export value.

The UK implements a TRQ system as part of its safeguard measures designed to protect domestic steel producers. This framework covers roughly 100 tariff lines totaling $200 million in value. The additional residual quota secured by India further strengthens its market position within this regulated structure.

Commerce Secretary Rajesh Agrawal stated that India’s negotiated quotas are more favorable than those granted to many other trading partners under the UK's new import regime. Roughly 80 percent of India's steel exports, across about 100 tariff lines, will continue to benefit from zero-duty access. The remaining 20 percent will be covered by these expanded quotas, which are deemed sufficient for both maintenance and potential expansion of exports.

Expanding Cooperation via Double Contributions Convention (DCC)​

Beyond steel trade, the India-UK Free Trade Agreement (FTA) facilitates deeper economic ties through reciprocal labor agreements. The Double Contributions Convention (DCC), a key aspect of the FTA, has seen its term extended by the government.

The DCC arrangement extends eligible temporary workers from both countries to remain covered by their home country's social security system for five years instead of the previous three. This provision helps reduce the cost burden associated with overseas assignments and mobility within industries operating between India and the UK.

Status of Carbon Border Adjustment Mechanism (CBAM)​

Discussions surrounding the proposed Carbon Border Adjustment Mechanism (CBAM) remain ongoing between Indian and British officials. The regulations for CBAM are currently being finalized, and both sides are actively engaged in the process.

The UK plans to introduce its CBAM starting on January 1, 2027. This measure is designed to impose a carbon price on imports of emissions-intensive products. These sectors include steel, iron, aluminium, cement, and fertilisers, aiming to align them with the carbon costs faced by domestic producers in the UK.

Market Performance and Trade Milestones​

India exported $893.4 million worth of iron, steel, and related products to the UK during FY26. This existing trade volume highlights the significant market penetration India already possesses in the British economy.

The Free Trade Agreement between India and the UK is set to come into full force on July 15, nearly a year after it was signed by both nations. The successful negotiation of expanded steel quotas serves as an important marker for Indian exporters ahead of the FTA implementation date.