India’s iron and steel exporters are set to benefit from a key change in the India–UK Comprehensive Economic and Trade Agreement (FTA), which now includes a new ‘co‑equal’ rule of origin. This provision simplifies the compliance process by allowing exporters to qualify for tariff benefits by meeting any one of the origin criteria, instead of fulfilling all conditions. The move is expected to improve market access for Indian steel products in the UK and strengthen bilateral trade flows.
Under the ‘co-equal’ system, exporters can demonstrate origin by satisfying one of several qualifying methods—such as value addition, change in tariff classification, or specific manufacturing processes. This added flexibility is likely to reduce administrative barriers, making it easier for small and mid-sized steel producers to benefit from the FTA’s preferential tariffs. It will particularly aid the export of products like alloyed steel, coated sheets, and specialised iron components that often undergo multi-stage processing across borders.
The UK has also updated its customs clearance procedures to align with the revised rules, helping streamline export documentation and reduce verification delays. Industry observers suggest that this regulatory shift could lead to a 10–15 per cent increase in steel exports from India to the UK over the next year, with integrated producers and component manufacturers expected to see the most gains.
The rule change is part of the broader ongoing trade negotiations between India and the UK, aimed at finalising a comprehensive agreement that spans goods, services, investments, and intellectual property. The adoption of the ‘co-equal’ approach marks a significant step toward creating a more efficient and business-friendly trade environment, encouraging stronger industrial linkages between the two countries.
