India-UK FTA: New Job Opportunities And Skill Avenues To Open Up For Youth Across Sectors

The India-UK Free Trade Agreement (FTA) is going to be formalised on Thursday evening (IST) and it is expected to open up several opportunities for the growth, skill development and employment of Indian youth across multiple sectors.

What Is The Objective Of This FTA?

This FTA will bring many significant benefits to India's services sector by creating opportunities in Information Technology and IT-enabled Services (IT/ITeS), Financial Services, Professional Services like management consultancy, architectural and engineering and other business as well as educational services.

These areas are specifically beneficial for the youth aspiring to build their careers in these growing sectors.

There will also be duty-free access to the UK market in labour-intensive sectors like leather and footwear, textiles and clothing, gems and jewellery, and furniture and sports goods.

India-UK Trade

At present, the UK imports more than $23 billion worth of the aforementioned products, which highlights a strong potential for increased production and employment in India-particularly for young workers.

Additionally, for the Indian professionals temporarily working in the UK (for up to three years) and their employers, a crucial advantage is the exemption from paying social security contributions in the UK, which currently amount to nearly 20% of the salary.

This will lead to significant financial gains for Indian service providers and enhance their competitiveness, while making international assignments more attractive for the youth, offering them global exposure.

Further, this FTA also promotes the ease of doing business by encouraging good regulatory practices, internal coordination, and public consultation.

The chapter on Digital Trade focuses on electronic trade at the central government level and emphasizes on trust and security, through measures for online consumer protection, cybersecurity, and open internet access.

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