The governments of India and the UK have successfully sealed a free-trade agreement (FTA) that will benefit the textiles, marine products, leather, footwear, sports goods and toys, gems and jewellery and organic chemicals sectors.
The signing of the FTA comes as increased economic relations between the two countries will see bilateral trade of about USD60 billion, projected to double by 2030.
In the FTA, an unprecedented double contribution convention means temporary Indian workers in UK and their employers are exempt from paying social security contributions for three years. The agreement also increases mobility for various professionals such as contractual service suppliers; business visitors; investors; intra-corporate transferees; partners and dependent children of intra-corporate transferees with the right to work; and independent workers like yoga instructors, musicians and chefs.
The agreement is expected to result in more competitors in Indian goods and service providers in the UK.
The FTA is also designed to promote sustainable and inclusive economic growth, ensuring resilient supply chains and generating high-quality employment in India. Service-based industries such as IT/ITeS, financial, professional, other business and education in India also stand to gain with the UK’s FTA commitment, leading to new opportunities and jobs.
