India and the UK signed a landmark free trade agreement on Thursday, and the services sector, a strong driver of the Indian economy, will also see wide-ranging benefits. The agreement provides greater market access in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade.
According to an official release of the government, Indian professionals, including those deployed by companies to work in the UK across all services sectors, professionals deployed on contracts such as architects, engineers, chefs, yoga instructors, and musicians, will benefit from simplified visa procedures and liberalised entry categories, making it easier for talent to work there.
How India-UK FTA benefits Indians working in UK
According to the details of the agreement, the FTA provides a new edge for India’s young professionals. India also secured an agreement on the Double Contribution Convention, which will exempt 75,000 Indian professionals and their employers from social security payments in the UK for up to three years, improving the cost competitiveness of Indian talent.
Indian professionals can also now work in as many as 35 UK sectors for up to 2 years, even without the need for a local office. Further, it grants access to 36 service sectors without an Economic Needs Test for Indian firms and freelancers.
Moreover, a new visa route will be opened and over 1,800 chefs, yoga experts, and musicians will be allowed to work in the UK annually, opening new doors for cultural and professional exchange. This new visa route is part of a broader initiative to ease mobility for professionals and foster closer ties between the two countries, and allows for a limited number of professionals to enter the UK on a 12-month service visa.
In all, the deal aims to double the USD 56 billion trade between the world’s fifth and sixth largest economies by 2030.