In response to recent criticism, Manoj Ladwa, Chairman of India Global Forum, argues that the National Insurance Contributions provision in the UK-India Free Trade Agreement is a standard, reciprocal measure that boosts British competitiveness and supports global business mobility.
07 May 2025: The UK’s landmark Free Trade Agreement (FTA) with India, signed earlier this week, represents not just a leap forward in global trade policy—but a clear-headed affirmation of Britain’s ambition to forge meaningful economic partnerships in the post-Brexit era.
Unsurprisingly, some aspects of the deal have attracted scrutiny. Chief among them is the provision allowing Indian professionals on short-term assignments in the UK to continue paying social security contributions in India rather than the UK—a mechanism known as the Double Contributions Convention (DCC). Figures such as Kemi Badenoch and Nigel Farage have voiced concern, calling it unfair to British workers and a form of “two-tier taxation.” These sentiments, while politically resonant in some circles, overlook the economic logic and international precedent underpinning this arrangement.
Let’s set the record straight.
The DCC is not new. Nor is it unique to India. The UK already has similar reciprocal arrangements with countries across the European Union, as well as with the United States, Canada, Japan, Switzerland, South Korea, and others. It is a globally recognised mechanism designed to avoid double taxation on social security for professionals temporarily working overseas. Under this agreement, a UK professional sent to India for a limited period will likewise not pay into India’s social security system. It is balanced, reciprocal, and—above all—beneficial for British business.
At its core, the DCC reduces friction for companies operating across borders. UK businesses sending employees to India, and Indian firms investing in the UK, no longer face the administrative and financial burden of double social contributions. That means lower costs, better mobility of talent, and increased competitiveness for firms operating in sectors where the UK excels—technology, finance, life sciences, and professional services.
Critics have characterised the policy as a loophole. It is not. Indian professionals covered by the DCC will still pay full UK income tax and the Immigration Health Surcharge. They will not be entitled to UK welfare benefits. This is a targeted provision, limited to intra-company transfers, and one that mirrors arrangements Britain has in place with many of its key trading partners.
More importantly, the wider UK-India FTA delivers a major economic boost to the UK—adding an estimated £4.8 billion annually to the economy and increasing wages by over £2 billion in the long term. It slashes tariffs, opens up India’s £38 billion public procurement market to UK businesses, and enhances regulatory cooperation in emerging sectors like digital trade and sustainability. This is exactly the kind of forward-thinking deal we need if the UK is to remain globally competitive.
The idea that Britain must choose between protecting domestic workers and engaging globally is a false dichotomy. In fact, this deal strengthens the hand of UK businesses and workers alike. It enables companies to expand, export, and innovate—laying the groundwork for job creation and prosperity at home.
The FTA is a confident statement of intent. It shows the UK is open for business, serious about global partnerships, and committed to being a leading economy in the 21st century. As Chairman of the India Global Forum, I’ve seen first-hand how India and the UK can thrive when they collaborate. This deal—and the provisions within it—are the product of years of careful negotiation, built on shared interests and mutual respect.
Let’s not reduce this to headlines and political point-scoring. Let’s look at the facts, the economic gains, and the global context. The DCC is not a concession—it is a catalyst. And this trade deal, taken in its entirety, is good for business, good for workers, and good for Britain.