Commerce Minister Rajesh Agarwal said on Friday that India is very close to operationalizing its Free Trade Agreement (FTA) with Great Britain. However, following the United Kingdom’s announcement of new steel safeguards that were not in force at the time of the agreement, some sticking points have emerged.
The Indian government has previously indicated that the free trade deal could come into force by the end of May, but it now appears likely to be delayed due to concerns over the UK’s revised steel policy.
“We are working together to find a creative solution to the steel measures and to operationalize CETA (Comprehensive Economic and Trade Agreement) soon,” Agarwal told the media in Delhi.
From 1 July, the UK will reduce duty-free steel import quotas by around 60% compared to the current safeguard regime. India’s exports of iron and steel, including related products, to the UK reached US$ 893.4 million in 2025-26, representing a significant share of the country’s US$ 13.4 billion in total merchandise exports to the UK market.
The India-UK CETA agreement, signed in July 2025, was reviewed by both houses of the UK Parliament in March. However, in India, FTAs are ratified through the executive route and require Cabinet approval. After that, both countries must finalize a mutually agreed “entry into force” date.
Under CETA, 99% of India’s exports will get duty-free access to the UK market, covering almost the entire value of bilateral trade. In return, India will reduce or eliminate duties on 90% of the UK’s tariff items, representing 92% of Britain’s imports.
Saurabh Sanyal, Secretary General of Assocham, said: “We expressed confidence that both countries will address concerns related to the UK’s revised steel safeguards through a constructive dialogue that will ensure greater trade certainty and stronger bilateral economic cooperation.”
The US trade team will arrive next month
On trade talks with the US, Agarwal said the next visit of the US trade team is expected in June. “Having entered into consultations on both Section 301 investigations, the US will inform us of the next steps after the consultations. We await the appropriate time to move forward on a trade agreement with the US,” he said.
Section 301 of the US Trade Act of 1974 authorizes the US Trade Representative to investigate and take action against trade practices that Washington deems to be unfair or discriminatory. In the past, India has been under scrutiny from the US due to its customs regime and policies related to digital trade.
