May 1st, 2025 at 05:27 am

UK Relaxes Visa Regulations for Indian Workers in Anticipation of Free Trade Deal

As India and the UK approach a Free Trade Agreement (FTA), the UK plans to relax its visa regulations. This change will allow around 100 additional Indian professionals to work in the UK each year.

This promising development strengthens trade ties between India and the UK. The adjustments come as negotiations for the FTA reach critical stages. According to reports, the UK Home Office will offer approximately 100 new visas annually for skilled Indian workers. While this number is modest, it indicates progress in negotiations that have faced delays due to migration concerns.

Aim for Stability, Not Increased Migration

A UK official informed POLITICO that these new visa provisions aim to provide businesses with greater “certainty.” However, the official refrained from estimating how many Indian workers would benefit, labeling such figures as “purely political.”

Despite concerns from the UK Home Office about net migration numbers, this limited visa expansion is expected to support essential sectors without drastically impacting immigration statistics.

India Seeks Further Concessions

India is not satisfied with just minor visa changes. During his visit to London starting April 28, Commerce and Industry Minister Piyush Goyal is advocating for additional concessions in the trade agreement. Key demands from India include:

• Exemptions from the proposed UK carbon tax.
• A refund mechanism for pension contributions made by short-term Indian workers.
• Exemptions from UK pension contributions for Indian workers already paying into India’s system.
• India’s High Commissioner to the UK, Vikram Doraiswami, reiterated these priorities in discussions with British officials.

UK Highlights Business Benefits of the FTA

A spokesperson from the UK Department for Business and Trade expressed commitment to finalizing a favorable deal with India. The goals include:

• Enhancing market access for British businesses.
• Reducing trade tariffs.
• Simplifying cross-border transactions.

Interestingly, POLITICO noted that the UK seems more optimistic about concluding the FTA soon than the Indian delegation.

High-Level Talks Indicate Progress

Piyush Goyal’s visit included a significant meeting with UK Business and Trade Secretary Jonathan Reynolds. Both sides expressed a mutual interest in finalizing the agreement. Following the talks, Goyal shared on social media: “The ongoing discussions are a step towards ensuring that both India and the UK can navigate the challenges posed by the current global trade climate.”

He emphasized that the FTA has the potential to enhance trade relations and unlock new business opportunities for both nations.

Implications for Indian Travellers and Professionals

While the visa changes may seem small, they signify a meaningful shift in UK policy. This could lead to:

• New skilled worker pathways for Indian professionals.
• Enhanced business mobility between India and the UK.
• Future discussions for broader visa liberalization as trust develops.

Indian travellers and professionals planning to move to the UK should stay informed through official government channels as details of the agreement emerge.