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 India-UK deal, signed last year, is expected to boost bilateral trade and improve market access across sectors.