The India-UK free trade pact, awaiting operationalisation, has hit a snag due to Britain’s recent steel safeguard measures that affect Indian exports. But the two sides are working on a “unique and creative solution” for early operationalisation, senior officials said.
India-UK trade pact nears operationalisation amid hurdles
“We are very near to operationalising that (the free trade pact). There are a few sticking points, as you are aware. The UK has come ahead with a steel measure recently, which was not factored in while negotiating the India-UK deal. We are working together to find a unique, creative solution around the steel measure also so that we can operationalise the India-UK Comprehensive Economic and Trade Agreement (CETA) at an early date,” he told reporters on Friday.
The India-UK CETA was signed in July 2025 and has been awaiting ratification.
UK steel safeguards create trade friction
The UK recently announced that it will limit tariff-free steel imports from July 1 2026, reducing overall quota volumes by 60 per cent compared to the steel safeguard measure, explained Ajay Srivastava from trade research body Global Trade Research Initiative.
Any imports above these levels will then face a 50 per cent tariff. The measure will apply to imports of steel products that can also be made in the UK.
“The UK’s decision to cut tariff-free steel import quotas by 60 per cent from July 1, 2026, may become a sticking point for the India–UK FTA. London is effectively following the EU’s protectionist steel model by combining safeguard restrictions with carbon-linked border taxes,” Srivastava added.
Published on May 15, 2026