UK Eases Visa Rules for Indian Workers Ahead of Free Trade Agreement

In a promising development for India-UK trade ties, the United Kingdom is poised to implement minor but impactful changes to its visa regime. These adjustments come as both nations approach the final stages of negotiating a long-awaited Free Trade Agreement (FTA).

According to a report, the UK Home Office has agreed to offer around 100 new visas annually for Indian skilled workers under the proposed terms. While modest in scale, these changes signal a breakthrough in talks that have been delayed for months over migration-related concerns.

UK Visa Reforms Meant to Offer Stability, Not Surge in Migration

A UK official told POLITICO that these new visa provisions would offer businesses more “certainty” amid ongoing policy shifts. However, the same official declined to put an exact figure on how many Indian workers will ultimately benefit, describing such estimates as “purely political.”

Despite resistance from the UK Home Office, concerned about its net migration figures the limited visa expansion is expected to support key sectors without significantly altering immigration statistics.

India Seeks Broader Concessions Beyond Visa Access

India is not stopping at limited visa changes. During his London visit that began on April 28, Commerce and Industry Minister Piyush Goyal is pressing for additional provisions in the trade agreement.

Among India’s key demands:

Exemptions from the UK’s proposed carbon tax
Refund mechanism for pension contributions by short-term Indian workers
Exemption from contributing to UK pensions for Indian workers who already pay into India’s system

India’s High Commissioner to the UK, Vikram Doraiswami, also reiterated these priorities in discussions with British officials.

UK Emphasises Business Benefits of India-UK FTA

Commenting on the progress, a spokesperson from the UK Department for Business and Trade stated that the British government remains “committed to doing the right deal with India.” The aim, according to officials, is to:

Boost market access for UK businesses
Reduce trade tariffs
Simplify cross-border transactions

Interestingly, POLITICO noted that it is the UK side that appears more optimistic about concluding the FTA soon, rather than the Indian delegation.

High-Level Talks Signal Momentum for India-UK Trade Deal

Piyush Goyal’s visit included a crucial meeting with newly appointed UK Business and Trade Secretary Jonathan Reynolds, where both sides expressed mutual interest in finalising the deal.

Following the talks, Goyal wrote on social media platform X: “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 emphasised that the FTA has the potential to enhance trade relations and unlock new business opportunities in both countries.