The absence of an India-UK Social Security Agreement continues to act as a barrier for trade and investment
Our latest joint report with the Confederation of Indian Industry, ‘India-UK Social Security Agreement’, highlights the hidden costs of trading between India and the UK where employees working on secondment suffer double contributions and employers suffer a double liability for the employer component.
The introduction of the Social Security Agreement would help balance what the UK has to offer and put Indian inward investors on an equal footing with US and other international investors who benefit from a full Social Security Agreement, which gives a five-year exemption from UK National Insurance.
“This measure would increase the UK’s attractiveness and ease of doing business for Indian companies in the UK. India is now the second largest inward investors to the UK and no doubt will become an even more important trading partner in a post Brexit world,” says Ian Matthews, India Group Partner.
Over 800 Indian companies in the UK, with consolidated revenues of £41 billion, employ nearly 110,000 people. This represents a major contribution by a Commonwealth partner to the UK economy, with further opportunities for investment. Additionally, there are hundreds of thousands of Indian employees on secondment to the UK, also contributing significantly.
“Thanks to the honourable minister Piyush Goyal, her excellency Gaitri Kumar and the Confederation of Indian Industry for officially launching this report and helping us spread the word on this issue,” says Ian Matthews.
View a full copy of the report here.