India is seeking product-specific carve-outs from the United Kingdom’s revised steel safeguard regime for categories linked to micro, small and medium enterprises (MSMEs), as the measure threatens to delay implementation of the bilateral trade agreement. The products include stainless steel wire rod, gas pipes, other welded pipes and hot-rolled steel products with significant export exposure to the UK.

The UK announced the new measure in March 2026, with implementation scheduled for July 1. It will reduce tariff-free steel import quotas by 60 per cent and impose a 50 per cent tariff on shipments above the permitted limits. Officials from New Delhi and London are discussing possible solutions to the impact on Indian exporters.

India has indicated that as many as 88 steel lines across product categories could be affected and is seeking relief before the agreement is operationalised. The targeted list covers around six categories, including hot-rolled steel sheets and strips, stainless steel bars and light sections, stainless steel wire rod, merchant bars, gas pipes and other welded pipes.

Two of the categories have relatively high participation from MSMEs, increasing the potential effect on smaller exporters. Industry representatives are seeking exemptions or dedicated quotas based on India’s average export volumes over the past three years, arguing that established trade flows should be protected under the new regime.

The India-UK trade agreement was signed in July 2025 and is awaiting implementation, with the steel quota issue emerging as a key sticking point. India exported iron and steel worth $566.69 mn in FY26, compared with $526.96 mn in FY25 and $383.82 mn in FY24, according to government data. New Delhi is treating the steel issue as part of the broader trade package rather than as a separate dispute, while talks continue between the two governments.