India-UK Free Trade Deal to Boost Tech Talent Mobility, Create New Growth Avenues for IT Sector

The recently finalized Free Trade Agreement (FTA) between India and the United Kingdom is poised to transform the mobility landscape...

The recently finalized Free Trade Agreement (FTA) between India and the United Kingdom is poised to transform the mobility landscape for Indian tech professionals. Touted as the UK’s most ambitious trade pact with India, the deal promises relaxed regulations for IT workers and professionals seeking opportunities in the UK, offering a major boost to India’s $250 billion IT services industry. 

UK Opens Doors to Indian IT Talent Under FTA 

With over 5.4 million Indian tech workers, the FTA enables easier movement for contractual service suppliers, business visitors, independent professionals, intra-corporate transferees, and even dependent family members. Indian professionals heading to the UK will also benefit from a three-year exemption on social security contributions, thanks to the inclusion of the Double Contribution Convention—a move expected to cut employment costs significantly. 

Nasscom, the apex software industry body, hailed the agreement as a game-changer that strengthens the Indo-UK economic partnership. “It will not only drive trade in services but also amplify cross-border collaboration in emerging tech domains,” said Nasscom in a statement. 

Strategic Wins for AI, Cybersecurity, and Digital Services 

The agreement includes specific provisions for digitally delivered services such as engineering, telecom, and computer-related solutions. Analysts believe this will pave the way for joint innovation in AI, cybersecurity, fintech, and edtech, sectors where both countries are actively investing. 

Infosys, Wipro, and HCLTech—who derive nearly 30% of their revenue from Europe—are expected to benefit directly from this policy shift. DD Mishra, VP at Gartner, noted that reduced regulatory friction and improved talent access will “supercharge R&D and tech innovation pipelines.” 

TeamLease Services co-founder Rituparna Chakraborty emphasized that the social security waiver will enhance the cost efficiency of Indian firms expanding into the UK. “It’s more than trade facilitation—it’s strategic talent enablement,” she added. 

A Win-Win for India and the UK 

This FTA marks a milestone in international labor mobility and is expected to drive new investment flows into India’s booming tech ecosystem. At the same time, it gives UK companies seamless access to India’s skilled digital workforce—creating a mutually beneficial framework for growth, innovation, and global competitiveness. 

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