UK Trade Minister Peter Kyle said implementation discussions on the India-UK Free Trade Agreement are progressing well, signalling continued momentum toward ratification.
India has raised concerns over Britain's planned steel safeguard measures and Carbon Border Adjustment Mechanism, which could affect market access for Indian exporters.
The UK plans to cap tariff-free steel imports from July 2026, with imports above the quota attracting a 50% tariff, emerging as a key issue in bilateral trade discussions.
Will the India-UK Trade Deal Be Delayed? UK Minister Breaks Silence
India and the UK are making steady progress toward implementing their Free Trade Agreement, though concerns over Britain's upcoming steel import restrictions remain a key point of discussion
Summary
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The UK and India have held discussions on the implementation of their recently signed Free Trade Agreement (FTA), with UK Trade Minister Peter Kyle saying progress is being made at a good pace.
His remarks suggest that the deal is likely to move forward as planned, despite reports of concerns over steel trade measures and speculation that some aspects of the agreement could be reopened for negotiations, Reuters reported.
India and the UK concluded negotiations on the FTA in May 2025 and formally signed the agreement in July. The pact is expected to come into force after it is ratified by both countries, a process that could take up to a year.
However, according to reports, Indian officials have raised concerns over new steel trade measures that the UK is set to introduce next month. Some officials have also suggested that certain provisions of the agreement may need to be revisited.
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"We look forward to cracking on. These things take time, but we've been working at breakneck speed," Kyle told reporters after returning from New Delhi.
"I'm not negotiating in public or via the media, but the FTA is what it is," he said when asked whether the agreement could be reopened for renegotiation.
Kyle added that if the deal is implemented by autumn this year, it would be the fastest implementation of any trade agreement Britain has ever signed.
Indian officials have previously indicated that the FTA could come into effect as early as May next year. However, the UK has not committed to a specific timeline for implementation.
What Is Holding Up the Deal?
Kyle and Union Commerce Minister Piyush Goyal met on Tuesday to discuss the next steps in strengthening bilateral trade ties and advancing the agreement's implementation.
The discussions come as the British Parliament reviews the India-UK Comprehensive Economic and Trade Agreement. However, the pact faces challenges stemming from the UK's planned steel safeguard measures and its proposed Carbon Border Adjustment Mechanism (CBAM).
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The UK has announced that it will reduce tariff-free steel imports and cap overall import quotas at 60% from July 1, 2026. Any imports exceeding the quota will attract a 50% tariff.
These measures have emerged as a key concern for Indian officials, who fear they could undermine some of the market-access benefits secured under the trade agreement.