06-05-2025
India-U.K. FTA, a significant step toward fostering trade, investment and job creation in both nations: Nasscom
Bengaluru
Nasscom, the tech industry apex body, has welcomed the India-U.K. Free Trade Agreement (FTA), terming the agreement a testament to the deepening economic partnership between the two global innovation hubs, also calling it a significant step toward fostering trade, investment, and job creation in both nations.
'The agreement would catalyse bilateral trade in services, foster cross-border innovation, and generate high-quality employment opportunities for Indian talent,' Nasscom said, adding the enhanced ease of doing business and regulatory transparency under this FTA would further strengthen India's position as a trusted partner to the world.
''We are thankful to both governments for the inclusion of the Double Contribution Convention, which exempts Indian workers temporarily employed in the U.K. and their employers from paying social security contributions for a period of three years,'' the industry body said in a statement on Tuesday (May 6, 2025).
By eliminating this double contribution burden, the agreement directly addressed a long-standing challenge faced by Indian Technology companies and other service providers operating in the U.K., it said. 'We will be studying the details of the agreement, including easing mobility for professionals that will enhance business competitiveness, resulting in a win-win partnership,'' it further said.
According to Nasscom, this exemption will not only enhance the access of Indian talent in the U.K. but also create new opportunities for skilled professionals, enabling them to contribute meaningfully to the U.K.'s dynamic economy. The provision reflected the recognition of India's strength in delivering high-quality services globally and reinforces the importance of mobility for Indian professionals in driving innovation and growth, it said.
'The FTA's focus on digitally delivered services, professional services, and financial services aligned with the aspirations of the Indian technology sector,' Nasscom said. 'It opens up avenues for deeper collaboration in emerging areas such as artificial intelligence, cybersecurity, and digital transformation, while also creating a conducive environment for startups and innovators.'
