Negotiations for the India-UK free trade agreement (FTA) have encountered a hurdle after concerns emerged over British restrictions on steel imports, which Indian negotiators view as a key sticking point in market access discussions.
Trade officials said India has flagged that existing or proposed UK measures on steel imports could limit the benefits of the proposed agreement, particularly for Indian exporters seeking greater access to the British market. The issue has added complexity to ongoing efforts to finalise a comprehensive trade pact between the two countries.
Steel remains a sensitive sector in global trade negotiations due to its strategic importance and domestic industry protections. Indian stakeholders are seeking clearer commitments on tariff reduction and non-tariff barriers to ensure fair and predictable access to UK markets.
Despite the challenge, officials on both sides are expected to continue discussions, with broader areas of convergence already identified in services, digital trade, and manufacturing. Trade experts said resolving the steel issue will be crucial to securing a balanced and mutually beneficial agreement.