India's free trade deal with Britain, initially expected to be implemented by May, has hit an expected hurdle over the UK’s new steel import curbs, India's trade secretary Rajesh Agrawal said on Friday.
"On the India-UK FTA we are very near to operationalising that. There are a few sticking points as you are aware," Agrawal told reporters, adding that the steel measures were not factored in during negotiations.
Britain in March unveiled stricter safeguards on steel imports as part of efforts to shield its domestic industry from a surge in global supply. The new regime, set to take effect from July 1, will sharply reduce tariff-free quotas and impose steep duties on shipments beyond those limits, potentially impacting exporters.
The curbs could dilute market access benefits for countries such as India, whose steel makers were expected to gain from tariff reductions under the agreement.
Agrawal said both sides were engaged in discussions to address the issue.
"We are working together to find a creative solution around the steel measure and operationalise the agreement at an early date," he said.
The two countries, on July 24, 2025, signed the pact, under which 99 per cent of Indian exports would enter the UK duty-free, while India will reduce tariffs on British products such as cars and whisky.
Earlier, Britain had safeguard measures that also imposed import quotas. The new measures reduce that quota.
India's exports of iron and steel and their products to the UK stood at USD 893.4 million in 2025-26, accounting for a significant share of the USD 13.4 billion in total merchandise exports to the UK.
The CETA was vetted by both houses of the UK's Parliament in March. In India, the Union Cabinet approves trade agreements.
Now, both sides must agree on a date for the Entry into Force (EIF) of the agreement.
Both sides are looking to double the bilateral trade from the current USD 56 billion by 2030.