India will be able to export 1.1 million tonnes of steel to the UK duty-free

The relevant agreement came into force on 15 July

The Comprehensive Economic and Trade Agreement (CETA) between India and the UK, which came into force on 15 July, will provide Indian steel exporters with duty-free access for volumes exceeding 1.1 million tonnes annually. This was reported by BigMint.

The new arrangement significantly increases India’s individual quotas for key steel products and provides exclusive limits under the UK’s Authorised Use Scheme (AUS). This will help mitigate the negative impact of the UK’s protective measures. From 1 July 2026, the UK will restrict duty-free steel imports by reducing total quota volumes by 51%, which is less than the 60% proposed in March. Supplies exceeding these levels will be subject to a 50% tariff.

Under the provisional allocation of quotas for the period from July 2026 to June 2027, India’s total quota for hot-rolled coil (HRC) has been reduced by approximately 6%. In particular, the specific quota for this category stood at just 12.4 thousand tonnes, raising concerns about the ability to increase supplies to the UK against the backdrop of a decline in its domestic production.

However, following protracted negotiations during the implementation of CETA, India secured a significant improvement in the terms. The updated duty-free access regime for over 1.1 million tonnes of steel per year includes:

• 168,000 tonnes under the country’s individual quotas;
• 945,000 tonnes under an exclusive limit under the AUS scheme for further processing.

The greatest progress has been made in the hot-rolled coil category, where India’s individual quota has almost tripled — from 12,4 thousand tonnes to 33,5 thousand tonnes. In addition, around 95% of India’s exports of non-alloy wire were exempted from protective measures. The quota for non-alloy structural sections was increased almost tenfold (to 4,500 tonnes), and that for welded tubes to 16,300 tonnes.

In 2025, India increased its steel exports to the UK by 17% — to over 620,000 tonnes, accounting for around 9% of total UK imports. The new agreements eliminate the risk of supply restrictions and guarantee stability for Indian steelmakers.

As reported by GMK Center, India revising the tariff concessions under its free trade agreement with the UK if its steel exports were not exempted from the proposed British safeguard duties, which would have entailed a sharp reduction in duty-free import quotas and the introduction of a 50% duty on supplies exceeding the limits.