The two countries, on July 24, 2025, signed the pact, under which 99 per cent of Indian exports would enter the UK duty-free, while India will reduce tariffs on British products such as cars and whisky.
“We are very near to operationalising that. There are a few sticking points, as you are aware, the UK has come ahead with a steel measure recently, which was not factored in while negotiating the India-UK deal. We are working together to find a unique, creative solution around the steel measure also so that we can officialise the India-UK CETA at an early date,” Commerce Secretary Rajesh Agrawal told reporters here.
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From 1 July 2026, the UK will limit tariff-free steel imports, reducing overall quota volumes by 60 per cent compared to the steel safeguard measure. Any imports above these levels will then face a 50 per cent tariff.
The measure will apply to imports of steel products that can also be made in the UK.
Earlier, Britain had safeguard measures that also imposed import quotas. The new measures reduce that quota.India’s exports of iron and steel and their products to the UK stood at USD 893.4 million in 2025-26, accounting for a significant share of the USD 13.4 billion in total merchandise exports to the UK.
The CETA was vetted by both houses of the UK’s Parliament in March. In India, the Union Cabinet approves trade agreements.
Now, both sides must agree on a date for the Entry into Force (EIF) of the agreement.
Both sides are looking to double the bilateral trade from the current USD 56 billion by 2030.