India-UK trade deal: Steel exports to touch USD 1 billion by FY27

India's steel exports to the UK could reach USD 1 billion by FY27 following an enhanced quota access of USD 350 million secured under the new India-UK trade agreement, a senior government official said, a substantial jump from historical exports.

India's steel exports to the United Kingdom could reach USD 1 billion in FY27 after the former secured improved steel quotas under the India-UK trade agreement, a senior government official said on Tuesday.

The official said the enhanced quota access would provide Indian steel exporters with a significant opportunity to expand their presence in the UK market despite the country's stricter safeguard regime for steel imports.

Details of the Enhanced Steel Quota

"Around 100 tariff lines covered under the UK steel quotas worth USD 200 million; the quota we have received is more at about USD 350 million, plus we have a residual quota," the official said.

The official noted that India's historical steel exports to the UK have been around USD 200 million, but the negotiated quota of approximately USD 350 million, along with access to a residual quota, is expected to substantially improve market access for Indian producers.

Broader Impact of the India-UK Trade Agreement

According to the government, these improved quota provisions could help India's steel exports to the UK touch USD 1 billion in FY27. The enhanced quota forms part of the broader market access secured under the India-UK trade agreement, which is aimed at expanding bilateral trade across multiple sectors.

Government officials have said the agreement provides improved opportunities for Indian exporters in several labour-intensive industries by reducing tariffs and easing market access.

Understanding UK's Safeguard Measures

The UK maintains safeguard measures and tariff-rate quotas on a range of steel products to protect its domestic industry. Exports beyond the prescribed quotas are generally subject to higher tariffs, making quota access critical for exporting countries.

The higher quota secured by India is expected to improve the competitiveness of Indian steel products in the UK market.

Officials believe the agreement will help diversify India's export basket to the UK while creating additional opportunities for domestic steel manufacturers.

The government also expects the trade pact to strengthen bilateral economic ties by facilitating greater trade and investment flows between the two countries.

The India-UK trade agreement is expected to provide preferential market access for a wide range of Indian goods, with the government projecting gains across sectors including textiles and apparel, leather and footwear, engineering goods, marine products, gems and jewellery, and steel.

Officials have described the pact as a significant step towards unlocking India's export potential in one of its key trading partners. (ANI)

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