India-UK trade deal: How DCC agreement could open doors for Indian workers
The agreement was signed by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds.This FTA is one of the most important trade deals India has signed with a developed country in recent times. It gives 99% of Indian exports to the UK duty-free access, helping key sectors such as textiles, leather, marine products, engineering goods, chemicals, footwear, toys, sports goods, and gems and jewellery.'It will promote ease of doing business, reduce cost of doing business, and increase the confidence of doing business. Additionally, UK's economy would benefit from India's skilled talent," said PM Modi."These agreements will enhance investments and generate new employment opportunities in both countries. Moreover, as agreements reached between two democracies and two of the world's major economies, they will lend support to global stability and global prosperity,' he added.WHAT IS THE DCC AND WHY IT MATTERSOne of the most important parts of the agreement is the Double Contribution Convention (DCC), which will directly benefit Indian workers and professionals going to the UK.Under normal circumstances, Indian employees working in the UK and their employers have to pay into the UK's social security system. This increases the cost for companies hiring Indian talent and also reduces take-home pay for the employees.With the DCC in place, Indian workers and their employers will be exempt from making social security payments in the UK for up to three years. This makes Indian professionals more cost-effective for British companies and ensures that workers don't lose a part of their salary to contributions that they may not benefit from in the long term.According to the Commerce Ministry, this change will increase the competitiveness of Indian workers in the UK and could lead to more job opportunities for them in fields like IT, engineering, finance, and consulting.HOW IT HELPS MOBILITY AND SERVICES TRADEadvertisementThe agreement also includes provisions to make it easier for Indian professionals to work and do business in the UK.There will be simpler processes for contractual service providers, independent professionals, and business visitors. This is expected to benefit people working in sectors like software services, design, healthcare, and financial consulting.The trade agreement is expected to make global markets more accessible to India's micro, small and medium enterprises (MSMEs). Startups, women entrepreneurs, farmers, artisans, and even fishermen will be able to benefit from reduced trade barriers and new business opportunities in the UK.Both countries have agreed to provisions that support sustainable development, remove non-tariff barriers, and encourage innovation.The deal aims to create a more balanced and strong economic relationship between India and the UK. The current bilateral trade stands at around USD 56 billion, and both countries hope to double it by the end of this decade.Commerce Minister Piyush Goyal said that the FTA will benefit everyone from farmers to factory workers and software developers. 'This FTA marks a milestone in the trade relations between two major economies. It unlocks tariff-free access on 99% of Indian exports to the UK and helps the Make in India vision,' he said.- EndsTune InMust Watch
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