Under India’s new Comprehensive Economic Partnership Agreement (CETA) with the UK, the services providers from that country will be eligible for the same treatment as domestic companies even if they do not have a local presence in India.
CETA for services by the UK
As per the provisions in the CETA signed on July 24, UK companies can now provide telecom, construction, and related services in India without establishing a local presence and still enjoy full national treatment.
National treatment in a trade agreement requires that once goods or services have passed through the customs and entered the market they should be subjected to the same regulations, taxes and standards as domestically produced goods.
This will enable UK companies export services to India without being subject to additional regulations like licensing and will enable them to compete with domestic firms on an equal footing.
“India’s offer to the UK of market access in areas such as professional, business, financial and environmental services will facilitate investments and technology into India, and these in turn will boost our potential to serve global markets,” officials said.
“The liberalisation under CETA will enable market access for IT and IT-enabled services, financial services, education, healthcare, professional services (accountancy, engineering, and management consultancy), telecommunications, and aviation support services for India,” they added.
India-UK bilateral trade of $ 56 billion is dominated by services. The total services trade comes to around $ 33 billion while merchandise trade is $ 23 billion. India’s services exports to the UK in 2024 stood at $ 19.90 billion while imports were $ 13.67 billion.
For closer linkages in services, India and UK have agreed to pursue Mutual Recognition Agreements (MRAs) for professional qualifications within 12 months of the agreement’s entry into force, targeting fields like nursing, accountancy, and architecture. This will reduce barriers for professionals and facilitate the exchange of best practices.
WIthin services, the UK has waived Economic Needs Test (ENT) and numerical restrictions on professional travelling to the UK for work. The ENT for skilled worker visa requires a job offer with salary meeting the general salary threshold or going rate for the occupation. Additionally applicants must prove they can support themselves upon arrival.
“The perceived risk of encountering ENTs has often discouraged businesses from seeking overseas talent, limiting the potential benefits of labour mobility provisions. This assurance under CETA will remove uncertainty and encourage smoother movement of professionals,” officials added.
What’s for Indians?
For Indian professionals, the UK has provided an assured regime for temporary entry and stay in categories such as Business Visitors, Intra-Corporate Transferees, Contractual Service Suppliers, Independent Professionals, and Investors. Durations range from 90 days for business visitors to 3 years for intra-corporate transferees, with the possibility of extensions.
For business visitors for all sectors the visa duration is 90 days in any 6 months period. Intra- Corporate Transferees (ICT) for all sectors including partner and dependent 3 year visa will be made available. In case of ICT the partners of the transferred professional would be eligible to work locally. Investor visa will be for a year and Contractual Service Suppliers (CSS) in 33 sub-sectors like IT-ITeS, business, finance, hospitality and transport among others – 12 months in any 24 months. Independent professionals in IT/ITES, business, professional, telecom and finance will get a similar visa eligibility,
A dedicated quota of 1,800 positions annually is reserved for Indian chefs, yoga instructors, and classical musicians under contractual service supplier arrangements.
