According to the BBC news report early this week [6 May 2025], the Free Trade Agreement (FTA) will make it easier for UK firms to export whisky, cars and other products to India, and cut taxes on India’s clothing and footwear exports. Prime Minister Sir Keir Starmer said the deal would boost the economy and “deliver for British people and business”.

The British government said the “landmark” agreement did not include any change in immigration policy, including towards Indian students studying in the UK.

Yash Dubal from immigration firm A Y & J Solicitors shares his opinions on the impact of the UK-India FTA.

“The newly signed UK-India FTA marks a historic step in strengthening economic ties between two long-standing allies. While the deal focuses heavily on trade and services, it also introduces key mobility provisions that HR professionals must understand – most notably, the introduction of a Double Contributions Convention (DCC) that affects the social security liabilities of seconded employees.

Under the DCC, Indian employees temporarily seconded to the UK for up to three years along with their employers, will be exempt from paying UK National Insurance Contributions (NICs). Instead, they will continue contributing to India’s social security system. The arrangement is fully reciprocal. UK staff sent to India under similar conditions will remain under the UK’s NIC system and avoid contributions in India.

This aligns with similar UK agreements already in place with the EU, Canada, Switzerland, and others. Importantly, seconded workers must still pay the UK’s Immigration Health Surcharge. The DCC applies to around 20,000 Indians who come to the UK through the business mobility route every year.

Ministers were quick to highlight that there was nothing in the agreement that would increase the number of visas issued each year to Indians. However, the deal does make it more financially attractive for companies to second their Indian workers to the UK as they will no longer have to pay each worker’s NI payments, amounting to just under £7k.

As such it represents a significant financial advantage for employers engaging Indian talent on short-term assignments, although it does not open new immigration routes or bypass existing UK visa rules as it makes no changes to the points-based immigration system. The DCC applies only to temporary transfers, not permanent hires.

To prepare, HR departments should identify roles or projects where secondments from India (or to India) could now be more cost-effective, update global mobility policies and engage with immigration advisers to ensure full compliance.

The FTA is not about open borders, it’s about smart, temporary mobility that benefits both economies. For HR leaders, it presents a chance to rethink secondments, save costs and foster stronger UK-India collaboration without compromising immigration controls.”

Yash Dubai is founder and managing director at A Y & J Solicitors.

• What will you be changing in your recruitment strategy, if anything? Comment below on this story, or let us know what you think by emailing us at [email protected]