India flagged the issue of giving an attractive services offer to the UK in return for an attractive social security pact from the UK in the India-UK FTA negotiations, Commerce & Industry Minister Piyush Goyal has said.
“When we were in dialogue with the previous government for an FTA, at that point of time in order to bring balance in the opportunities and benefits for both countries, India had flagged the issue of giving an attractive services offer in return for an attractive social security agreement or a totalisation agreement from the UK,” Goyal said at a joint media briefing with UK Secretary of State for Business and Trade Jonathan Reynolds on Monday.
Goyal and Reynolds announced the re-launch of negotiations for an India-UK FTA and said that its conclusion would be prioritised.
A social security agreement, which has been officially called the Double Contribution Convention Agreement in the India-UK negotiations, is important for India as it would help avoid double contribution to social security funds by Indian workers on short-term stints in the UK and vice-versa.
It was more important for India than the UK particularly because there is a much smaller set of people in the UK compared to India. “Also, with the growth trajectory being different in both the countries, the potential business opportunities were pretty much different,” Goyal said, adding that India had asked the UK to consider a social security agreement about two years ago.
Three pacts
Goyal said the two countries were actively negotiating at three different fronts – FTA, bilateral investment treaty (BIT), and a Double Contribution Convention Agreement.
The Minister also made a case for a more liberal visa regime for businesses and professionals to promote bilateral trade and investments between India and the UK but maintained that India had never ever discussed immigration in any FTA negotiations.
“And if we both wish to expand our trade and investments, obviously we have to be faster and more liberal in our issuance of visa,” Goyal said.
The India-UK FTA negotiations were launched in January 2022 under the Conservative government. In July 2024, the Labour Party swept to power and deliberated for eight months before re-starting the trade talks.