New Delhi: The India-UK Comprehensive Economic and Trade Agreement (CETA), which came into effect on Wednesday, is expected to create fresh opportunities for Indian students, skilled professionals and higher education institutions by facilitating greater mobility, recognition of qualifications and collaboration in education and digital services.
According to a background note released by the government, the agreement secures one of the UK’s most ambitious commitments on services, covering all 12 major service sectors and 137 sub-sectors, while providing an assured framework for the temporary entry and stay of Indian professionals.
One of the key education and employment provisions under the agreement is the commitment by India and the UK to pursue Mutual Recognition Agreements (MRAs) for professional qualifications within 12 months of the agreement coming into force. The proposed recognition framework covers professions such as nursing, accountancy and architecture, a move expected to reduce regulatory barriers and improve overseas employment prospects for Indian graduates.
The agreement also removes the UK’s Economic Needs Test for Indian professionals and creates dedicated mobility pathways for business visitors, intra-corporate transferees, contractual service suppliers and independent professionals across sectors including IT, finance, telecommunications, hospitality and transport. Depending on the category, professionals will be able to work in the UK for periods ranging from 90 days to three years.
For the higher education sector, CETA enables deeper academic collaboration by allowing UK educational institutions to establish campuses in India, while also creating opportunities for Indian institutions to expand operations in the UK, particularly in education technology and training services. The agreement also promotes digitally delivered education services, opening new avenues for cross-border learning and institutional partnerships.
The government said the pact is expected to strengthen India’s IT and IT-enabled services sector by expanding market access for software, professional consultancy, education and training services. It is also expected to accelerate the growth of Global Capability Centres (GCCs) in India by encouraging UK companies to expand research and development, cybersecurity, analytics and emerging technology operations in the country.
Another significant benefit is the Double Contribution Convention (DCC), under which Indian professionals on assignments of up to 60 months in the UK will no longer have to make dual social security contributions. The government estimates the provision will benefit more than 75,000 Indian professionals and around 900 Indian companies, reducing employment costs while increasing take-home earnings.
The agreement is also expected to boost employment in labour-intensive sectors such as textiles, leather, footwear, engineering goods, food processing and electronics through increased exports to the UK. The government said improved market access for these industries could generate additional jobs across manufacturing clusters and rural economies while creating greater demand for skilled manpower.
Overall, the government said the India-UK CETA seeks to combine trade liberalisation with greater investment in innovation, digital cooperation, professional mobility and people-to-people linkages, laying the foundation for a stronger education, skills and employment partnership between the two countries.
