India-UK Sign £25 Billion Free Trade Deal Benefiting 75,000 Indian Workers, Tamil Nadu Economy

The newly signed free trade agreement (FTA) between India and the United Kingdom is expected to significantly benefit both countries, with a focus on Tamil Nadu's economy and the broader service sectors. Indian Prime Minister Narendra Modi highlighted that about 99% of Indian exports to the UK will become duty-free, facilitating easier market access for Tamil Nadu’s products such as textiles and seafood, while infrastructure investments will support the state's development. The deal also includes a Double Contribution Convention, allowing Indian professionals working temporarily in the UK to be exempt from paying national insurance contributions for up to three years, a provision estimated to help over 75,000 Indian workers and 900 employers, especially benefiting IT companies like Tata Consultancy Services and Infosys. Modi emphasized that the migration provisions will inject new energy into the UK economy, particularly in technology and finance, although critics have raised concerns about potential undercutting of British workers. UK officials, including Business and Trade Secretary Jonathan Reynolds, have denied these claims, noting that visa costs and health surcharges will balance the financial impact. The agreement also facilitates reciprocal work arrangements for UK workers in India and was celebrated as a broad enhancement to bilateral trade and collaboration.