IT Industry Cheers Historic India-UK FTA: Double Social Security Exemption to Power New Era

India-UK Free Trade Agreement (FTA) has been termed as a "game-changer" by Indian IT industry, with industry body Nasscom calling it a historic milestone that will redefine bilateral economic relationship and increase digitally powered services.

 

A highlight is the Double Contribution Convention, excluding Indian professionals and their employers from UK social security contributions for up to three years-eliminating a significant cost hurdle and rendering Indian service providers much more competitive in the UK.

 

The FTA will remove duties on 99% of Indian exports and is likely to bring substantial gains for IT, textiles, pharmaceuticals, gems & jewellery, and engineering goods. More than 60,000 Indian IT professionals every year are likely to gain with greater mobility and lower regulatory barriers.

 

The agreement is expected to raise bilateral trade by £25.5 billion by 2040, generate new employment opportunities, and enhance cooperation in innovation, digital trade, and emerging technologies such as AI and cybersecurity.

 

The agreement also features robust commitments on digital trade, regulatory alignment, and more efficient cross-border data flows, further improving the ease of doing business for Indian tech companies in the UK.

 

Sources: Moneycontrol, BusinessWorld, Firstpost