India has agreed to increase the duty-free quota for steel exports to the UK

India has secured an increase in the duty-free steel export quota to the UK as part of a free trade agreement. This was announced to the press by the country’s Secretary for Trade, Rajeesh Agrawal, according to Bloomberg.

The new agreement grants Indian steel exporters a larger duty-free import quota, resolving one of New Delhi’s key concerns in the trade negotiations.

Agrawal added that India is also in talks with the UK regarding the latter’s planned carbon tax, which is due to come into force in January 2027.

According to the official, the free trade agreement between the two sides, combined with the improved market access secured during the negotiations, is expected to help boost Indian steel exports to the UK market to $1 billion in the 2026/2027 financial year, NDTV reports.

Almost 80 per cent of steel exports from India to the UK, Agrawal noted, will not be subject to UK safeguard measures. The remaining 20 per cent, covering around 100 product lines, will be protected by agreed quotas. Steel quotas for India under the free trade agreement are estimated at approximately $350 million, which significantly exceeds the average volume allocated by the UK to other trading partners.

It should also be noted that the UK government recently published a revised policy note on the procurement of steel for public contracts. New transparency requirements regarding the use of steel products will come into force on 1 October 2026.

In particular, according to the document, for projects worth £10 million or more, or those requiring more than 500 tonnes of steel, contracting authorities must specify in the contract notice whether steel products manufactured in the UK will be used by the main contractor or within the supply chain (if this information is known at the time the contract is awarded).

If domestically produced steel is not to be used, or if its origin is unknown at the time the contract is awarded, the reason must be stated in the relevant notice.

Furthermore, regardless of the contract value or the volume of steel, relevant public sector buyers will be required to consult the UK Steel digital catalogue before making any design or procurement decisions.

As reported by GMK Center, on 25 June the UK government published details of new protective measures concerning steel. From 1 July 2026, the country will restrict duty-free imports by reducing total quota volumes by 51 per cent, which is less than the 60 per cent proposed in March. The total quota will amount to around 3.2 million tonnes. Shipments exceeding these levels will be subject to a 50 per cent tariff. The safeguard measures will apply to imports of steel products that can be manufactured in the UK.