In a historic move, the UK signs deal with India workers under a new Free Trade Agreement (FTA) with India. Signed on May 6, 2025, this agreement marks a turning point in UK–India economic relations, especially in the area of skilled worker mobility. It’s designed to boost trade, foster innovation, and improve access to talent across industries.

Let’s break down the key details, the benefits, and what it means for workers and businesses in both nations.

What’s in the Deal?

The agreement includes a Double Contribution Convention (DCC) that exempts Indian workers and their UK-based employers from paying UK National Insurance Contributions (NICs) for up to three years. This ensures workers can continue contributing to India’s social security system while avoiding double taxation.

Additionally, the Global Business Mobility visa has been expanded to cover 33 job categories, up from 15. This includes roles such as chefs, yoga instructors, musicians, and teachers allowing for greater cultural and professional exchange.

7 Powerful Benefits of the UK Signs Deal with India Workers

1. Tax Relief for Indian Professionals

The NIC exemption means Indian professionals seconded to the UK retain more of their salary, increasing their take-home income and reducing the burden on companies.

2. Increased Talent Mobility

With more recognized occupations and streamlined visa processes, Indian professionals can now explore new opportunities in the UK’s dynamic job market.

3. Economic Growth for the UK

The UK government estimates that this deal will boost its GDP by £4.8 billion by 2040, with total trade volume potentially rising by £25.5 billion.

4. Lower Operational Costs for UK Firms

Employers hosting seconded Indian workers will benefit from lower staffing costs, thanks to NIC exemptions—especially useful for sectors like IT and hospitality.

5. No Change to Immigration Caps

The deal does not increase permanent immigration. It simply eases temporary worker mobility, aligning with the UK’s controlled immigration approach.

6. Support for Small Business Growth

Startups and SMEs can tap into a more diverse talent pool to fill specialized roles, especially in wellness and creative industries.

7. Cultural Exchange & Youth Opportunities

Programs like the Young Professionals Scheme allow thousands of Indian nationals under 30 to live and work in the UK for two years, promoting cultural exchange and experience-sharing.

Why the UK Signs Deal with India Workers Matters for India and the UK

For India:

• Enables seamless secondment of professionals.
• Provides tax clarity for Indian firms expanding abroad.
• Supports post-study work rights and pension portability.

For the UK:

• Fills skill gaps in key industries.
• Reinforces global competitiveness.
• Fosters bilateral ties with the world’s fastest-growing major economy.

Addressing the Criticism of the UK Signs Deal with India Workers

Not everyone is on board with the deal. Critics like Nigel Farage and some Conservative MPs argue that the tax exemptions create a “two-tier” system that disadvantages British workers. Others worry it may undercut small businesses that rely on local hiring.

However, UK officials defend the deal as consistent with 50+ international agreements that already feature similar exemptions. They also emphasize that this is not a mass immigration policy, but a strategic economic move.

What Businesses Should Know About the UK Signs Deal with India Workers

Employers planning to bring in Indian talent should:

• Evaluate potential savings through the NIC exemption.
• Update HR onboarding processes for seconded staff.
• Ensure visa compliance under the Global Business Mobility scheme.
• Promote internal equity by ensuring fair treatment of all workers.

The fact that the UK signs deal with India workers is more than just a diplomatic milestone it’s a catalyst for economic and cultural transformation. By opening new channels for skilled labor, reducing tax burdens, and fostering bilateral trust, this FTA positions both countries for a stronger, mutually beneficial future.

Whether you’re an Indian professional eyeing new opportunities in the UK or a UK business looking to scale with global talent, this deal creates the platform to do so with less red tape and greater clarity.

Sources: https://www.gov.uk/