Danielle Cohen Immigration Law Solicitors Limited | View firm profile
- What is the UK India Trade Deal?
The United Kingdom and the Republic of India concluded talks on a free trade agreement (FTA). The agreement was reached on 6 May 2025 between the Prime Minister and Prime Minister Modi, and is expected to increase the UK GDP gross domestic product by £4.8 billion and UK wages by £2.2 billion each and every year in the long run. As a result of the deal, businesses will now be able to trade with India with “confidence and security”, the Prime Minister stated, as the mission of the government is to secure “sustained economic growth” and that the UK “will benefit from open export markets and access to competitive imports that support production at home.” India represents one of the most dynamic and exciting economies in the world and has the highest growth rate in the G20. However there has been significant challenges for UK business seeking access to this growing market and despite challenging conditions, the UK business have high ambitions for the future of trade with India.
From an Indian perspective, the government of India announced that the major trade deal signed with the UK will provide “greater global mobility for aspirational young Indians” and expand opportunities in Britain. Addressing the House of Commons, the Minister of State and Department for Business in Trade said in a statement that the deal ensures the UK point based immigration systems remain unaffected. He later emphasised that the agreement covers temporary business mobility, not immigration and it is aligned with the existing UK properties. A key feature of the Free Trade Agreement is a provision exempting Indian workers temporarily posted in the UK from paying UK social security contributions for up to three years! The press release around this stated that the FTA eases mobility for professionals including contractual service suppliers, business visitors, investors, intercorporate transferees, partners and dependent children of intercorporate transferees who try to work and independent professionals like yoga instructors, musicians and chefs. The opposition pointed out that the agreement will come at a significant cost to the British taxpayer. It may be that it will be 20% cheaper for companies in the UK to hire Indian workers over British workers. Harriet Baldwin said in the House of Commons that she was shocked and asked “will the convention really mean that an Indian owned restaurant chain in the UK could pay no National Insurance for its chef while a British pub next door pays full National Insurance for its chef?”
- What is the advice to employers recruiting from India?
The new trade deal will streamline access to skilled workers and global talent route. The FTA creates a framework to simplify the application process for Indian professionals in key sectors and although eligibility is still governed by the skilled worker visa requirements and the global talent route, the agreement commits to reducing procedural barriers particularly for recognised roles and qualifications such as tech, health and cultural services.
- How will new business mobility provisions be improved?
Indian nationals can benefit from up to 12 months of temporary entry and an easier movement under the global business mobility service supplier and secondment workers’ route. It will also improve processing and documentation guidance. This is not a route to settlement and is designated for short-term contractual or intercompany work.
- What would be the effect on intercompany transfers?
The FTA facilitates smoother movement of skilled staff from Indian companies to the UK branches through the global business mobility senior specialist worker route. The key improvement will include reduced documentary burden, consistent eligibility standards and National insurance exemption.
- How will it benefit recognition of professional qualifications?
A framework is being introduced to mutually recognise qualifications in fields such as accountancy law, architecture, engineering and details will depend on professional body agreement, but the process will support easier visa access via recognised status under the skilled worker or the global talent route.
- What will be the effect on the youth mobility route?
Indian nationals continue to benefit from India Young Professionals Scheme allowing for two years’ work and travel stay in the UK and has 3,000 spots annually. The key limitations are that none of those create settlement rights and all applications must comply with Immigration Rules.
- Where can I find the relevant guidance?
More specific Home Office guidance that is dedicated to the India/UK Free Trade Agreement and its immigration measures can’t be found because the deal is not yet in force. The Home Office will issue guidance once the final text of the FTA is legally verified and published, the UK Parliament complete its scrutiny and approve it, and the implementation legislation (the Home Office rules) are drafted. The likely publication will be May 2026, based on current timelines.