National Association of Software and Service Companies or Nasscom has welcomed the historic and landmark India-UK Free Trade Agreement (FTA). This agreement is a testament to the deepening economic partnership between two global innovation hubs and represents a significant step toward fostering trade, investment, and job creation in both nations. This agreement will catalyse bilateral trade in services, foster cross-border innovation, and generate high-quality employment opportunities for Indian talent. The enhanced ease of doing business and regulatory transparency under this FTA will further strengthen India's position as a trusted partner to the world.
Nasscom said it is thankful to both governments for the inclusion of the Double Contribution Convention, which exempts Indian workers temporarily employed in the UK and their employers from paying social security contributions for a period of three years. By eliminating this double contribution burden, the agreement directly addresses a long-standing challenge faced by Indian Technology companies and other service providers operating in the UK. This exemption will not only enhance the access of Indian talent in the UK but also create new opportunities for skilled professionals, enabling them to contribute meaningfully to the UK's dynamic economy.
The FTA’s focus on digitally delivered services, professional services, and financial services aligns perfectly with the aspirations of the Indian technology sector. It opens up avenues for deeper collaboration in emerging areas such as artificial intelligence, cybersecurity, and digital transformation, while also creating a conducive environment for startups and innovators.