India-UK Free Trade Agreement (FTA) – Key Provisions and DCC

Announcement after formalization of legal documents; FTA to be implemented once these documents are in place.
Comprises chapters including trade in goods, services, and others (27 chapters mentioned).
Mutual mechanism on cross-border social security (DCC) agreed to avoid dual social security contributions; facilitates smoother movement of personnel.
DCC = mutual social security coordination mechanism; temporary postings (up to a specified period) also covered; aims to prevent double social security contributions and simplify compliance; UK immigration health surcharge (IHS) remains mandatory.
For posted workers, dependents, and related personnel, social security contributions will be handled in a coordinated manner."

DCC is a form of social security agreement intended to avoid double contributions when workers move between the two countries.
Under DCC, posted workers and their dependents will pay social security in only one country at a time; no separate social security payment in both countries.
This arrangement prevents double social security contributions and simplifies cross-border work arrangements.
The benefit scope includes workers posted for temporary periods (e.g., up to ten years) and their dependents.
The one-country contribution framework applies to the individual’s home country for the duration of the posting.
IHS (UK Immigration Health Surcharge) remains mandatory for entrants

Zero-tariff access for goods: approximately $99\%$ of Indian exports to the UK will enter tariff-free.
For Indian market imports from the UK: approximately $90\%$ of UK goods exported to India will face zero tariffs.
Tariff elimination trajectory: within $10\text{ years}$ , about $85\%$ of Indian textile-related products will be tariff-free.
Movement of Indian professionals: easier visa/jury of movement for:
- Contract workers and short-term staff; business travelers; investors; their spouses and dependents; skilled professionals (e.g., certain professional categories).
Services and IT market access: broader access for IT and IT-enabled services, financial services, professional services, other business services, and education services.
Procurement opportunities for UK firms: UK companies can bid for procurement in India, including central government and public sector undertakings, for essential goods and services and defense-related works.
IT and services integration: enhanced market access in IT, IT-enabled services, and other professional services to boost cross-border trade in services.
IHS requirement: UK immigration health surcharge (IHS) payments remain mandatory for entrants.