India’s steel exports to the United Kingdom are projected to reach USD 1 billion in FY2026–27, driven by improved market access secured under the India–UK Free Trade Agreement (FTA). Government officials believe the enhanced quota allocation and preferential access will significantly boost shipments of Indian steel products to the UK in the coming years.
According to government sources, India has secured higher-than-average tariff-rate quotas for steel exports during the FTA negotiations. While India’s annual steel exports to the UK under the earlier quota regime were valued at around USD 200 million, the new arrangement provides quotas worth approximately USD 350 million across nearly 100 steel tariff lines. In addition, Indian exporters will have access to the UK’s residual quota mechanism, creating further opportunities to expand exports.
Officials said the improved quota structure means that around 80% of India’s steel exports to the UK will remain outside Britain’s safeguard restrictions, allowing exporters to access the market more competitively despite the UK’s revised steel trade measures. This enhanced access is expected to encourage Indian steel producers to increase shipments while strengthening their presence in one of Europe’s key steel markets.
The development comes as the India–UK Free Trade Agreement officially enters into force, providing substantial tariff concessions and improved market access across multiple sectors. The agreement is expected to deepen bilateral trade, support manufacturing exports and create new opportunities for Indian industries, including steel, engineering goods, textiles and pharmaceuticals.
Industry experts believe the improved quota regime will help Indian steel manufacturers diversify export destinations amid evolving global trade dynamics. Increased exports to the UK are also expected to strengthen capacity utilisation, enhance competitiveness and contribute to higher foreign exchange earnings for the domestic steel sector.
Government officials remain optimistic that the favourable quota arrangement, combined with the broader benefits of the FTA, will enable India’s steel exports to the UK to grow substantially over the next few years, potentially reaching the USD 1 billion milestone during FY2026–27.
