• UGI USER
  • Dec 17, 2023
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INDIA-UK FTA: FOCUS ON EASIER MOBILITY FOR SERVICE SECTOR WORKERS

Why in the News?

  • India is emphasizing a simplified mobility regime for its service sector workforce in the ongoing Free Trade Agreement (FTA) talks with the UK.
  • Both nations are addressing pending issues within the FTA negotiations.

Visa Facilitation for Service Firms:

  • India urges the UK to align the visa regime to facilitate the operation of Indian service firms in the UK, allowing them to hire personnel locally.
  • Recognizing migration-related concerns post-Brexit, efforts are directed at balancing the interests of both countries.

Specifics of Talks:

  • Talks involve discussions on short-term work permits for India’s service sector under the “movement of natural persons” (Mode 4) category.
  • Mode 4 addresses services traded by individuals between WTO member countries, covering employees of service firms and self-employed service suppliers.

India’s Service Sector Strength:

India aims to leverage its service sector strength in FTAs, particularly with the UK and the European Union, emphasizing the importance of such agreements for economic collaboration.

UK’s Migration Strategy:

  • The UK, led by Prime Minister Rishi Sunak, aims to reduce legal migration by increasing the minimum salary for skilled job migrants.
  • Migration policies, a significant aspect of UK politics, have evolved in response to changing dynamics, including Brexit.

Challenges and Sensitivities:

  • Limited Market Access : Mode 4’s market access is currently limited, granting entry to highly skilled individuals or those transferred from an affiliate company with a commercial presence in the UK.
  • Visa issues : Visa issues remain sensitive in trade talks, with the UK’s focus on managing record net migration figures, influenced by political dynamics post-Brexit.