UK to ease key rules for workers

UK-India landmark trade deal

- Rajeev Jayaswal

India secured significant business mobility concessions for its professionals in the free trade agreement formalised with the United Kingdom on Thursday, overcoming years of British reluctance on immigration-sensitive issues.

The breakthrough came after protracted negotiations that began in January 2022 but stalled due to political uncertainty in the UK and mutual sensitivities over market access. “The UK was unwilling to grant business mobility because of political sensitivities involved with immigration in general. On the other hand, India was guarding its automobile and agri-food market with up to 110% and 150% (whisky) tariffs, respectively,” an official familiar with the talks said, asking not to be named.

Under the final agreement, an “innovative” Double Contribution Convention exempts Indian workers and their employers from UK social security contributions for three years, boosting competitiveness and earnings — a significant cost-saving measure for Indian IT and financial services companies sending employees to Britain on work visas.

The mobility provisions cover professionals in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade, with “simplified visa procedures and liberalised entry categories, making it easier for talent to work in the UK,” the commerce ministry said ina statement.

However, the UK has imposed a quota of 1,800 per year for qualified Indian traditional chefs, yoga instructors and classical musicians entering as contractual service suppliers, with temporary entry and stay permissible up to 12 months in any 24-month period. In turn, India has also opened key segments of its services economy to British firms, granting access in sectors such as accounting, auditing, financial services (with FDI in insurance capped at 74%), telecom (allowing 100% FDI), environmental services, and auxiliary air transport.