India has secured broad protection for its steel exports to the UK under Britain’s forthcoming safeguard regime, with around 85 per cent of shipments exempt from the new restrictions.
Access for the remaining exports will be preserved through a combination of country-specific allocations and residual quotas negotiated as part of the bilateral trade agreement, according to an official familiar with the matter.
The UK’s recent steel safeguard measures had become a major sticking point in implementing the Comprehensive Economic and Trade Agreement (CETA), which was signed on July 24, 2025. The resolution has paved the way for the implementation of the agreement from July 15.
Announced in March, the UK’s steel safeguard measures apply to all countries. The norms will cut duty-free steel import quotas by 60 per cent from July 1, with imports above the prescribed limits subject to a 50 per cent tariff from 25 per cent at present.
The step was announced to protect the UK’s fragile domestic firms from global overcapacity. The protective measure will affect 15 per cent of India’s $839 million in exports to the UK from the sector.
Overall, 188 items accounting for $137 million worth of steel exports from India were covered by these safeguard measures, but these products will now also gain access, the official said.
Apart from country-specific quotas, exporters can also access residual quotas, which are generally allocated on a first-come, first-served basis and are open to competition among supplying countries.
Imports exceeding the permitted quota would face tariffs of 50 per cent, compared with the 25 per cent currently.
Social security
The majority of Indian professionals working in the UK for Indian companies would be spared from making social security contributions for up to five years, reducing costs for firms and enhancing the competitiveness of Indian service providers in the British market, an official said.
The two countries, on June 17, announced that the Agreement on Social Security, or the Double Contribution Convention (DCC), will come into effect on July 15. The DCC will give a major boost to IT majors like TCS and Infosys.
Professionals of Indian-origin contribute $0.5 billion each year to the UK social security. Around 75,000 Indian professionals are working in Britain. The average annual salary of a professional in the UK is estimated at £40,000-50,000. About 15 per cent of the salary is paid towards social security contributions.