The recently concluded UK-India Trade Deal marks a significant milestone in the post-Brexit era, offering substantial opportunities for businesses and professionals in both nations. The deal marks the biggest trade agreement by the UK with another country since Brexit, while India described it as “the most comprehensive free trade deal” that it had entered into.
Beyond the anticipated economic benefits for both countries, with an expected £4.8 billion per year added to the UK economy, the agreement introduces provisions that could positively impact UK immigration pathways, particularly for Indian professionals.
What are the Key Provisions of the Trade Deal?
What tariffs will be reduced?
- For UK exports to India: tariffs on British exports, including whisky, cars, and medical devices, will be reduced. Specifically, tariffs for higher value cars are decreasing from 100% to 10% under a quota.
- For Indian exports to the UK: tariffs on Indian imports such as clothing, food products, and jewellery will be lowered, making these goods more affordable for UK consumers.
What Business Mobility Enhancements Are There?
- The agreement facilitates temporary movement for professionals, allowing some Indian workers to be seconded to the UK for up to three years without making National Insurance contributions (NICs).
- This provision is reciprocal, benefiting UK professionals working temporarily in India.
While the point about social security payments has been controversial in some quarters, it is worth noting that the UK has such reciprocal agreements with around 50 countries. All foreign temporary workers are exempt from paying national insurance for up to one year.
Implications for UK Immigration
While the Trade Deal does not include any change in immigration policy, it introduces specific provisions that could influence immigration dynamics. In particular, Indian professionals on short-term assignments in the UK may find the process streamlined, with reduced financial burdens due to the social security payments exemption.
Conclusion
The UK–India Trade Deal is more than a trade agreement. It is a strategic partnership that enhances economic ties and opens new avenues for professional collaboration. For Indian professionals and UK businesses alike, the agreement presents opportunities to engage more deeply, fostering growth and innovation across sectors.
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