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Double contribution convention not major mover for labour displacement
Despite tax savings from UK-India FTA's social security waiver, analysts say high costs and limited incentives may not significantly boost Indian IT deployments to the UK
Shivani Shinde Avik Das
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A day after the free trade agreement (FTA) was signed between India and the UK, the double contribution convention — an exemption on national insurance contributions — has emerged as a key issue. Analysts in India, however, feel that this may not lead to a significant increase in the number of Indian employees being sent to the UK.
According to media reports from the UK, the fear is that this may lead to hiring more people from India than the locals. However, the UK already has similar reciprocal 'double contribution convention' agreements with 17 other countries.
The Indian IT services
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