Visa, employment, insurance: What will change for Indians in UK under trade deal

Indian business visitors travelling to the UK for meetings, trade fairs, or consultations will have their rights safeguarded under the free trade agreement.

India and the United Kingdom on Thursday signed a Free Trade Agreement (FTA), setting out new terms for trade in goods and services and introducing provisions that will govern the movement of Indian professionals, workers, and businesses in Britain.

Prime Minister Narendra Modi with his British counterpart Keir Starmer during a meeting at Chequers Estate, in UK. (X-@narendramodi)

The agreement secures continued access for Indian nationals under the UK’s existing business mobility routes, such as short-term business visitors, intra-corporate transferees (ICTs), contractual service suppliers, and independent professionals.

These categories, previously governed by UK policy decisions, now gain legal protection under the FTA.

Indian business visitors travelling for meetings, trade fairs, or consultations will have their rights safeguarded under the deal, which prevents future UK policy shifts from arbitrarily reversing these provisions.

What it means for Indian nationals in UK

• The FTA introduces a new visa route that permits up to 1,800 Indian professionals per year to work in the UK’s cultural and wellness sectors, including chefs, yoga instructors, and Indian classical musicians. These roles can be contractual or self-employed and aim to fill specific labour shortages in these fields.
• Independent professionals and service providers in sectors such as IT, engineering, and architecture will be allowed to work in the UK for up to 12 months under the FTA. However, applicants must still meet UK immigration requirements, including salary thresholds and documentation, to be eligible.
• The intra-corporate transfer route has been reaffirmed, allowing senior employees and graduate trainees from Indian companies to stay in the UK for up to three years, with a possibility of extension. This provides predictability for Indian businesses with global operations.
• Indian investors and graduate trainees will also continue to benefit from existing UK schemes, with eligibility subject to prevailing immigration rules.
• The FTA includes a provision that exempts Indian companies from paying UK national insurance contributions for workers on temporary assignments in the UK for up to three years, provided those employees remain covered by India’s social security system. The commerce ministry estimates this exemption could benefit about 75,000 Indian workers.
• The FTA includes commitments on mutual recognition of professional qualifications and grants market access for Indian service providers across 36 sectors. It also eliminates the requirement for an economic needs test in several areas. However, rules governing permanent migration, settlement, and long-term residency remain unchanged.
• Indian exporters, particularly in textiles and apparel, are expected to gain from tariff reductions. Firms such as Welspun India, Arvind Ltd, Raymond, and Vardhman may benefit from duty-free access to the UK market.