The India-UK Free Trade Agreement (FTA) introduces significant provisions aimed at enhancing professional mobility between the two nations. This agreement is designed to facilitate the movement of various professionals, including contractual service suppliers, business visitors, investors, and intra-corporate transferees, along with their dependents. While it does not alter the existing immigration laws, it incorporates favorable terms that simplify access to work opportunities in the UK.
Under the new regulations, the UK government plans to issue up to 1,800 visas annually for independent Indian professionals, such as chefs, musicians, and yoga instructors. This move is expected to broaden the horizons for many skilled individuals seeking opportunities in the UK.
Another notable aspect of the FTA is the reform of the Global Business Mobility Visa. The eligibility criteria for this visa have expanded significantly, increasing the number of eligible sectors from 15 to 33. This change enables professionals in a wider array of industries to enter the UK job market, particularly through intra-corporate transfers.
One of the standout features of the agreement is the National Insurance exemption for Indian intra-corporate transferees working in the UK. These professionals will be exempt from contributing to UK National Insurance for three years, which could potentially raise their net income by up to 20%. This exemption is particularly beneficial for over 60,000 Indian tech employees in the UK, leading to estimated savings of more than ₹4,000 crore.
A Mutual Recognition Agreement (MRA) is a crucial framework that allows two countries to acknowledge each other's professional qualifications. This agreement simplifies the process for professionals to work abroad without needing to requalify. For instance, Indian chartered accountants or architects recognized through an MRA would not have to retake exams or certifications to practice in the UK, thereby reducing barriers to entry.
As of now, no MRA has been finalized under the FTA. However, both nations have agreed to encourage relevant organizations to engage in negotiations for MRAs in critical fields such as law, accountancy, engineering, and architecture.
While the mobility gains from the FTA are indeed positive, they are regarded as a 'minor win' for India. The reforms are quite targeted and do not encompass broad immigration relaxations, as they cater to specific sectors while maintaining the UK's stringent immigration controls.
India's IT industry, architecture, engineering, and telecommunication services are poised to gain the most from these agreements, especially in digitally delivered services, where India has secured substantial commitments.
These provisions significantly benefit skilled Indian professionals, particularly in the digital services sector. The UK serves as a major global hub for such services, thanks to its advanced infrastructure and regulatory environment, offering structured opportunities for Indian youth.
The full legal text of the FTA is expected to be made available within three months. Once released, it will provide a clearer understanding of the mobility and recognition benefits outlined in the agreement.
As articulated, “A nation’s strength lies not just in its borders but in the doors it opens for its people to learn, work, and lead beyond them.”
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