India to ‘rebalance’ UK deal in wake of steel restrictions: Piyush Goyal (original) (raw)

India was “collateral damage” in the UK’s bid to protect its steel industry from economies producing excess steel, according to Union Trade and Commerce Minister Piyush Goyal. Thus, while a trade agreement between both nations had been signed in June, there is some rebalancing left to be done in the wake of these steel restrictions by Britain, he added.

“When the European Union (EU) decided that since their eight years of safeguard duties have run out, they’re going to enhance duties on steel to protect it from overcapacity,” Goyal said while speaking at Financial Express’ India’s Best Banks Awards 2026 in Mumbai.

“(This was) not against India really, it’s more a protection against another country which produces a huge amount of excess steel. We are collateral damage. But with the European Union, they took the decision before we inked the deal,” Goyal said. Thus, while terms with the EU could be renegotiated swiftly during discussions, the same was not possible with the UK since a deal with them was already sealed, he added.

Much after the India-UK trade deal was announced, the UK government, on July 1, decided to limit tariff-free steel imports, reducing overall quota volumes by 60% compared to the steel safeguard measure. Any imports above these levels will then face a 50% tariff. The measure will apply to imports of steel products that can also be made in the UK.

Steel is an important export from India to the UK. In 2025-26 India’s exports of iron and steel and their products to the UK stood at 893.4million,whichaccountsforasignificantportionof893.4 million, which accounts for a significant portion of 893.4million,whichaccountsforasignificantportionof13.4 billion of total merchandise exports to the UK.

“…and there were a couple of other issues (other than steel) that are related and have cropped up. One of the issues is conclusively closed—they accepted our point of view. On the other issue they have given me an offer, but I need more information. If I like it and it’s good for our country, it will close the second issue. And on steel, we need to rebalance with some products which will possibly even hurt the UK businesses, but that’s the nature of trade… India is no more a pushover country,” the trade and commerce minister said.

On the ongoing trade discussions with the US, Goyal said, “…negotiations are going extremely well. If they want to continue with the deal that we have finalised, we are game, as long as we are not burdened with huge amounts of Section 301 tariffs, which could possibly cumulatively be much more than the deal that we have signed.”

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The US has launched two Section 301 investigations against India: one for not restricting imports of products produced through forced labour, and the second on excess capacity. While 12.5% tariffs have already been announced, the current tariff level could go up when the probe on excess capacity is released.

“…(Section) 301 is the last possible provision in law under which they can put a tariff on India. So they are going to exploit it to the maximum that they can. We will protect India’s interests, and I am very confident that the deal will come through,” Goyal said.

Speaking on the Regional Comprehensive Economic Partnership, which is the world’s largest free trade agreement, Goyal reiterated that “there’s absolutely no chance the Modi government is going to sign RCEP.” India has stayed out of the trade alliance in the past due to concerns over dumping and widening trade deficits, with negotiations with China also being a barrier.

Speaking on the potentially “risk-averse” nature of Indian corporates, Goyal said, “…potential in India is I think recognised more by the foreigners than by our own business people, who sometimes we feel become a little risk averse, or become very cautious in their approach.”

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“If our Indian businesses don’t really perk up and look at faster and deeper investments into the economy, and start growing fast, you may jolly well land up in a situation that foreign investments and foreign companies may come in and start picking up the Make in India program, the Skill India program, the Startup India program, and our investments into innovation may go into foreigners’ hands,” Goyal added.

Speaking on if there was a need to put curbs to limit the heavy outflow of foreign funds from the Indian markets seen over the past year, Goyal said, “…absolutely not. I think this unfortunate rumour and trepidation is a complete misreading of the situation.” While the West Asia conflict has led to a cautious approach, it does not mean there is a ‘dollar crisis’ in the economy with enough cover for 11 months of imports and relatively robust current account deficit levels, he added.