India Expects UK Steel Exports To Reach $1 Billion In FY27 After FTA

India is expecting a further increase in steel exports to the United Kingdom after the India-UK Free Trade Agreement (FTA) comes into effect.

Commerce Secretary Rajesh Agrawal said on Monday that steel shipments to the UK could rise to around $1 billion in FY27, helped by improved market access and favourable safeguard arrangements negotiated under the trade deal.

Majority Of Exports To Be Exempt From Safeguard Curbs

One of the major issues during the FTA negotiations was the UK's safeguard mechanism on steel imports.

According to Agrawal, India secured better terms than several other trading partners, with nearly 80% of India's steel exports to the UK expected to remain outside the safeguard restrictions.

The remaining 20% of exports, covering roughly 100 steel product lines, will be managed through specific quota arrangements agreed upon under the FTA.

India Secures Higher Steel Quota

The government said the negotiated quota for Indian steel exports is valued at about $350 million.

That is significantly higher than the UK's average quota allocation of around $200 million provided to many of its other trading partners, according to the Commerce Secretary.

India's steel exports to the UK are currently estimated at approximately $900 million in FY26, and officials expect the figure to rise once the agreement becomes operational and exporters start benefiting from the revised market access framework.

Government Also Monitoring EU Carbon Rules

During the briefing, Agrawal also addressed the European Union's proposed Carbon Border Adjustment Mechanism (CBAM).

He said the framework is still evolving and has not yet been fully implemented. India continues to engage with its trading partners and to hold discussions aimed at protecting the interests of Indian exporters as global carbon-related trade regulations develop further.

The expected rise in UK-bound steel shipments is being viewed as one of the early commercial gains from the India-UK FTA, particularly for sectors where market access and quota arrangements have historically been important factors for exporters.

Also Read - LTTS Q1 FY27 Results: Net Profit Climbs 17.4%, Revenue Grows 11.5%