The India-UK free trade agreement is going to ease norms for Indian professionals in the UK and spur job growth. Under the pact, qualified professionals from India such as architects, engineers and medics will be able to take advantage of the enhanced market access and provide services in the UK. It is expected to create direct and indirect jobs through the expansion of these services sectors.
India-UK trade pact to benefit these professionals
The pact will also provide professionals with better mobility access to the UK, especially those involved in the R&D and computer services.
Additionally, the CETA allows for around 75,000 detached workers to benefit from the double contribution convention (DCC) that exempts Indian workers who temporarily move to the UK and their employers from contributing to the national insurance contribution for three years. This will reduce the financial burden on Indian professionals temporarily working in the UK and will lead to better income generation.
“The exclusion of social security contributions through DCC supports simpler compensation structures and higher earning potential for detached workers, benefiting many temporary service industry professionals from the Indian diaspora in the UK,” said Neelabh Shukla, chief business officer at Careernet. He said that the pact will also give British firms access to Indian government contracts. “This access, coupled with the lower tariffs on both sides, will lead to UK companies taking India more seriously for building talent through global capability centres (GCCs). It should indirectly lead to more job creation beyond trade benefits,” he said.
The benefit of the pact is stated to go beyond the traditional services commitments. For instance, Indian chefs, yoga instructors and classical musicians — up to a combined total of 1,800 per year — will now be able to temporarily move to the UK to provide their services.
Further, the trade deal also provides certainty for Indian professionals employed by companies without any physical presence in the UK who can now supply a service across key categories such as consulting, architectural services, tech, IT/ITes, and travel agency.
Sachin Alug, CEO of NLB Services, said that professionals in new-age digital roles will be in high demand across domains like AI, cybersecurity, and data science. “A major highlight of the agreement is the immediate removal of tariffs on Indian exports from key labour-intensive sectors, including gems and jewellery, textiles, leather and footwear, and food processing. This initiative is expected to spur job growth and provide direct benefits to workers employed in these crucial industries,” he said.
Legal services left out
The India-UK comprehensive economic and trade agreement (CETA) does not include legal services, with industry players calling it a missed opportunity. The Law Society of England and Wales had warned of the negative fallout of this way back in May when the negotiations for the deal were concluded.
The UK is the world’s second-largest legal services provider, contribute £57.8 billion annually to the economy. The sector supports around 526,000 people in employment, amounting to 1.6% of the UK workforce. “We…are disappointed to see that the UK-India pact has been agreed without reference to legal services,” Law Society president Richard Atkinson had stated. “This is a missed opportunity for a significant breakthrough in terms of market access for lawyers in both India and the UK. Legal services is an enabling sector, supporting other sectors in their own trade and investment decisions and operations,” he added— Jyotsna Bhatnagar.