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The recently concluded India-UK Free Trade Agreement (FTA) marks a significant milestone in bilateral relations, particularly in enhancing professional mobility between the two nations.
This agreement facilitates the movement of various professionals, including contractual service suppliers, business visitors, investors, intra-corporate transferees, and independent professionals such as yoga instructors, musicians, and chefs.
The free trade agreement (FTA) between India and the UK would provide a number of new opportunities for domestic independent professionals such as yoga instructors, musicians, and chefs, the commerce ministry added after the two countries on Tuesday announced conclusion of the free trade agreement (FTA).
Similar provisions are also there in the economic cooperation and trade agreement between India and Australia, which was implemented in December 2022.
According to the Indian government, the FTA will open up immense opportunities in the UK for talented and skilled young Indians.
Moreover, Indian professionals who are temporarily working in the UK (and their employers) won’t have to pay UK social security taxes (like national insurance) for up to 3 years.
This is part of a special agreement called the Double Contribution Convention, which avoids people paying into two countries' systems at the same time.
This implies that Indian professionals on short assignments in the UK will take home more pay, and Indian companies will spend less—a win-win that boosts job creation and global competitiveness.
"The exemption for Indian workers who are temporarily in the UK and their employers from paying social security contributions in the UK for a period of three years under the Double Contribution Convention will lead to significant financial gains for the Indian service providers and enhance their competitiveness in the UK market that would create new job opportunities as well as benefit large number of Indians working in the UK," the commerce ministry said in a release.
Point to note: While UK has expanded the types of jobs that highly skilled professionals from India can apply for, under business mobility options, to use these expanded routes, professionals must prove they have the necessary experience and qualifications for those specific roles, as the UK will require them to meet strict standards before allowing them to work in the country.
In the UK Parliament, Douglas Alexander, Minister of State at the Department for Business and Trade, said the agreement preserves Britain’s existing rules on immigration.
“The deal does not affect the points-based system. It only covers business mobility, which is different from immigration, as it is about travel for specific and temporary business purposes," he said.
The FTA introduces provisions that simplify visa processes and employment regulations, making it easier for Indian professionals to work in the UK and vice versa.
Notably, Indian nationals employed in the UK will be exempt from paying national insurance contributions for up to three years, a move that is expected to reduce operational costs for Indian companies and encourage more professionals to take up assignments in the UK.
"British officials said Indian employees relocating to the UK would still be subject to salary thresholds for visas and have to pay the NHS surcharge for immigrant workers, despite the national insurance exemption," reported the Financial Times.
Jonathan Reynolds said on Tuesday that an existing visa route for some temporary workers that's not currently available to India — and capped at 1,800 people — will now be open to Indian employees.
"The UK-India FTA could open smoother pathways for skilled Indian professionals, especially in tech and healthcare, if mobility clauses survive the final deal.
But immigration is politically toxic in the UK, so actual gains may be modest. Unless the FTA tweaks the points-based visa system to favour Indian qualifications, its impact will be more symbolic than substantial," said Raheel Patel, Partner, Gandhi Law Associates.
The agreement also opens avenues for independent professionals.
For instance, yoga instructors, musicians, and chefs can now explore opportunities in the UK market with greater ease.
This is particularly beneficial for India's rich cultural and culinary heritage, allowing professionals to showcase their skills on an international platform.
The FTA is expected to boost bilateral trade and investment. By enhancing the mobility of professionals, companies can deploy skilled personnel more efficiently, leading to improved service delivery and project execution.
Moreover, the agreement is anticipated to attract more UK investments into India, fostering economic growth and job creation.
"The finalization of India-UK FTA is expected to stimulate significant economic benefits for both the countries with coverage across Goods, Services and People Mobility.
Tariff relaxations and eliminations coupled with duty reductions across sectors would not only enhance the bi-lateral exports but also open up consumer market on both sides especially amidst the market sentiment due to recent tariff announcements by the Unites States.
This coupled with steps to be taken towards enhancement of service sector trade such as IT/ITeS, financial services, professional services, educational services and other business services and proposed relaxations across workforce and visitor movement and social security contribution waivers would also promote skill accessibility and enable employment opportunities," said Krishan Arora, Partner, Leader - India Investment Roadmap, Grant Thornton Bharat.
So, who benefits from the FTA?
Contractual Service Suppliers – Professionals like consultants, architects, or tech experts hired for specific overseas projects.
Business Visitors – People visiting for short-term business, meetings, or setting up operations.
Investors – Indian entrepreneurs looking to invest or expand in the UK, and vice versa.
Intra-Corporate Transferees – Employees being transferred between a company’s India and UK offices.
Their partners and children – Can now accompany them with the right to work.
Independent Professionals – Such as yoga instructors, chefs, and musicians, who can now offer their services more easily in the UK.
What It really means:
Fewer visa hassles for professionals moving from India to the UK.
Faster and smoother relocation for company employees and their families.
Greater cultural exchange, especially for independent artists and chefs bringing Indian traditions abroad.
Better job opportunities for Indians with globally in-demand skills (tech, finance, wellness, hospitality, etc.).
For example: An Indian yoga instructor could now legally offer classes in the UK more easily. A chef with a specialty in regional cuisine might join a UK restaurant or open one. A Bengaluru-based IT firm can transfer its top engineers to its London office without legal delays.In short: it's about breaking barriers for skilled professionals, freelancers, and creative talent.
"The agreement facilitates movement for a range of professionals—including contractual service suppliers, business visitors, investors, intra-corporate transferees, their partners and dependent children (with work rights), as well as independent professionals. While student visas are not yet included, the framework lays a positive foundation for future dialogue on broader mobility opportunities.
The implementation of the social security pact will eliminate dual contributions to social security funds for Indian professionals on short-term assignments in the UK, creating a mutually beneficial arrangement. With projected savings of approximately 20%, the increased disposable income is expected to enhance purchasing power, providing financial relief and greater economic flexibility for these professionals," said Pallavi Bakhru, Partner and UK Corridor Leader, Grant Thornton Bharat.
The FTA does not change UK immigration rules or the points-based visa system.
It only covers temporary business mobility—for professionals like business visitors, intra-company transferees, and service providers.
Student visas and permanent immigration were not part of the deal.
It’s about easing short-term, work-related travel, not long-term migration.
Bottom line: Easier travel for work, not a path to settle or study in the UK.
