Archive · 25 Jul 2025
India-UK FTA: IT and Electronics Sectors Set for Boost
India and the UK have made a deal to help businesses.
Indian workers in the UK, mostly in IT, won't have to pay social security taxes for three years.
This saves money for companies like Tata and Infosys, and makes it easier to send workers to the UK.
Also, Indian electronics, such as phones, can now be sold in the UK without extra taxes.
This deal makes it easier and cheaper for Indian businesses to work in the UK, and helps them sell more products there.
India-UK Free Trade Agreement (FTA) provides a three-year exemption from social security payments for Indian professionals in the UK.
The exemption benefits approximately 75,000 Indian workers and over 900 employers, primarily in the IT sector.
This agreement allows Indian products like smartphones, optical fiber cables, and inverters to enter the UK market duty-free.
The FTA will eliminate a long-standing burden of dual social security contributions, enabling greater talent deployment.
The FTA aims to accelerate shipments and strengthen India’s presence in a high-value, tech-savvy UK market.
- Who
- The agreement benefits Indian IT workers, electronics exporters, and companies doing business in the UK.
- What
- India and the UK signed a Free Trade Agreement (FTA).
- When
- Not explicitly mentioned.
- Where
- The agreement impacts trade and worker mobility between India and the UK.
- Why
- To reduce costs, increase market access, and strengthen trade relations.
Impact of FTA on IT and Electronics sectors
Facilitates Workforce and Export Gains
Trade benefits
Impact of FTA on IT and Electronics sectors
Enhanced mobility and exemption of social security payments.
Facilitates Workforce and Export Gains
Increased exports from India in IT and electronics sectors, duty-free access
- Agreement
- India-UK Free Trade Agreement (FTA)
- Social Security Exemption
- Three years for Indian professionals in the UK
- Affected Workers
- Around 75,000
- Affected Employers
- Over 900, primarily IT
- Indian IT Exports to UK
- 17% of total IT exports
- Duty-free Products
- Smartphones, optical fiber cables, inverters