A groundbreaking India-UK Free Trade Agreement (FTA) signed today will exempt Indian companies, including IT giants like TCS and Infosys, from making social security contributions for employees sent to the UK for up to three years. This move is set to benefit over 75,000 Indian workers and 900 employers, easing operations for Indian firms in the UK.

The exemption, part of the Double Contribution Convention (DCC), ensures that Indian professionals temporarily working in the UK won’t face double social security payments. This is a major win for India’s USD 283 billion IT industry, where the UK is the second-largest export market, accounting for 17% of its exports.

Commerce Minister Piyush Goyal celebrated the deal on X, stating, “This three-year social security exemption is a game-changer for Indian workers and employers.” The DCC, combined with the FTA, simplifies the movement of Indian professionals to the UK for onsite projects, addressing a long-standing challenge for the IT sector.

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Signed by Goyal and UK counterpart Jonathan Reynolds in the presence of Prime Ministers Narendra Modi and Keir Starmer, the FTA slashes tariffs on British whisky, cars, and other goods, while boosting bilateral trade by an estimated USD 34 billion annually. Indian officials note that 99% of Indian exports will benefit from tariff reductions, enhancing market access for both nations.

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