On May 6, 2025, India and the United Kingdom (“UK”) reached a historic milestone by finalizing a mutually beneficial India-UK Free Trade Agreement (“FTA”) and a Double Contribution Convention (“DCC”). These landmark agreements are set to catalyze trade, investment, growth, job creation, and innovation. The FTA is a testament to the growing economic relations between India and the UK, with bilateral trade currently at approximately USD 60 billion and projected to double by 2030.

These agreements promise significant benefits for Indian farmers, fishermen, workers, MSMEs, startups, and innovators. The FTA is not just about goods and services; it is about people, possibilities, and prosperity. It safeguards core interests while opening doors for India's greater participation in global value chains.

This article highlights the key takeaways from these historic agreements from a people mobility and employment perspective:

1. Employment Opportunities in Manufacturing: The FTA opens new employment avenues in labour and technology-intensive manufacturing industries in India. It provides expanded export opportunities for sectors including textiles, marine products, leather, footwear, sports goods, toys, gems, jewellery, engineering goods, auto parts and engines, and organic chemicals.

2. Ambitious Commitments in Services: India will benefit from one of the most ambitious FTA commitments from the UK in services such as IT/ITeS, financial services, professional services, other business services, and educational services. This will create new opportunities and jobs.

3. Easier Mobility for Professionals: The FTA facilitates easier mobility for professionals, including Business Visitors, Investors, Intra-Corporate Transferees, their partners and dependent children with the right to work, and Independent Professionals like yoga instructors, musicians, and chefs. This ensures that Indian professionals can travel to the UK and vice versa to attend conferences, transfer within their organizations, and supply services under contract. This will benefit professionals and businesses across various sectors, including engineering, architectural services, accountancy, and management consultancy.

4. Opportunities in the UK for Skilled Indians: The FTA will generate immense opportunities for talented and skilled Indians in the UK, a major global center for digitally delivered services due to its strong financial and professional services sectors and advanced digital infrastructure.

5. Social Security Contributions Simplified: The DCC will streamline trade and business between India and the UK by ensuring that employees and professionals moving between the two countries, and their employers, will only be liable to pay social security contributions in one country at a time. The DCC also ensures that employees temporarily working in the other country for up to three years will continue paying social security contributions in their home country, preventing the fragmentation of their social security record.

6. Recognition of Professional Qualifications: The FTA includes a professional services annex, encouraging relevant bodies in both countries to negotiate mutual recognition agreements for professional qualifications. This aims to streamline the recognition process, reducing administrative burdens, time, and costs, thereby providing certainty for businesses operating internationally. The annex establishes a Professional Services Working Group to oversee implementation, support relevant bodies, and exchange information on professional services. Importantly, it preserves the autonomy of India and UK bodies to set and maintain their professional standards.

Conclusion and Future Insights:

The India-UK FTA and DCC mark a significant step forward in strengthening economic ties between the two nations. For employers, these agreements promise a more streamlined process for hiring and transferring skilled professionals, fostering innovation and growth in various sectors. Employees, on the other hand, will benefit from enhanced mobility, new job opportunities, and simplified social security contributions. As these agreements come into effect, they are poised to create a more dynamic and interconnected workforce, driving prosperity and collaboration between India and the UK for years to come.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Authors:

Gyanendra Mishra, Partner

Maruti Nandan, Associate