Piyush Goyal: Immigration Not Part of India-UK Trade Agreement Talks

Key Takeaways

• Immigration is excluded from India-UK FTA discussions, per India’s policy of separating immigration from trade agreements, reaffirmed February 24, 2025.
• India-UK FTA talks resumed for the 14th round; 21 out of 26 chapters were settled as of December 2023.
• The 2025 YPS ballot opens February 18, 2025, offering 3,000 Indian nationals aged 18–30 two-year UK stays.

India’s Commerce and Industry Minister Piyush Goyal has made it clear that immigration is not part of the ongoing discussions for a free trade agreement (FTA) between India 🇮🇳 and the United Kingdom 🇬🇧. At a joint press briefing held on February 24, 2025, with UK Business and Trade Secretary Jonathan Reynolds, he firmly stated, “India has never ever discussed immigration as part of any of our trade agreements, and the FTA with the UK is no exception.” This firm declaration underscores India’s long-standing policy of keeping immigration separate from trade talks. The statement comes as the two countries resume discussions on the much-anticipated agreement after delays.

What’s Happening with the FTA?

Piyush Goyal: Immigration Not Part of India-UK Trade Agreement Talks

The India-UK FTA negotiations represent a critical step in strengthening bilateral ties between the two nations. These talks, which began on January 13, 2022, have already seen significant progress, moving through 13 rounds by December 2023. However, negotiations were paused in March 2024 due to general elections in both countries. Now, with the 14th round underway, the focus is on finalizing issues across several complex areas. Out of the 26 chapters in the draft agreement, 21 have already been settled.

Despite immigration being excluded from discussions, several important areas are being negotiated. These include trade in goods and services, investments, and intellectual property rights. Both countries are determined to use the FTA to boost economic ties and achieve mutual benefits. According to Piyush Goyal, keeping these discussions focused on trade aspects, rather than broader concerns like immigration, creates a more productive atmosphere.

What Does the FTA Mean for Both Parties?

For India 🇮🇳, the agreement is an opportunity to address long-standing trade concerns, especially for sectors like IT, information technology-enabled services (ITeS), and healthcare. Indian businesses are hoping for better access to UK markets for skilled professionals and reduced or zero customs duties on a variety of goods. On the other hand, the UK 🇬🇧 is aiming to expand its market share in India by seeking lower import duties on Scotch whisky, electric vehicles, chocolates, and lamb meat. Additionally, British stakeholders are looking for better access to India’s banking, telecommunications, insurance, and legal services markets.

Key statistics underline the importance of this agreement. As of the fiscal year 2023-24, bilateral trade between the two nations stood at $21.34 billion. With the successful completion of the FTA, both India and the UK are hoping to see this figure rise significantly. The UK sees this as particularly important as it looks to reaffirm its global trade position post-Brexit. Jonathan Reynolds expressed this sentiment, saying, “We want to take our trading relationship with India to the next level, and this trade deal forms the bedrock of this commitment.”

For India, the agreement aligns with its ambitions of becoming a major global economic power. The country is forecast to lead the G20 group with the highest rate of economic growth over the next five years and is expected to become the third-largest global economy by 2028.

The Young Professionals Scheme and Its Role

While immigration is not on the table during the FTA talks, there are initiatives in place that encourage mobility between the two nations. One such initiative is the UK-India Young Professionals Scheme (YPS), which was launched in February 2023. Though separate from the FTA discussions, the scheme plays a role in enhancing ties between the two nations by offering young people opportunities to live, work, and study in each other’s countries.

The 2025 ballot for the YPS opens on February 18, 2025, and will allow 3,000 Indian nationals aged 18 to 30 to visit the UK for up to two years. Those applying must meet certain requirements, such as holding at least a bachelor’s degree and demonstrating proof of savings of £2,530. The program is reciprocal, meaning the same opportunities are available for young UK nationals in India.

This scheme is an example of efforts to foster people-to-people ties while keeping broader immigration policies separate. It’s important to note that while the YPS promotes mobility, it does not involve discussions concerning permanent residency or long-term immigration.

The Social Security Issue: A Separate Matter

Another topic that has gained attention in the FTA discussions is the potential for a social security agreement, also called a totalisation agreement. This has been a long-standing request from India and aims to address issues related to social security contributions for Indians working in the UK. Such an agreement could help Indian workers avoid the double payment of social security taxes in both countries, ultimately benefiting professionals in sectors like IT and healthcare.

Though this agreement is being negotiated alongside the FTA, it remains an independent matter separate from immigration. Discussions around this topic reflect the broader attempt to make economic cooperation more accessible and beneficial for professionals from both sides.

Why Is Immigration Excluded?

Piyush Goyal’s stance on excluding immigration from trade agreements reflects India’s consistent approach. Immigration policies often encompass a wide array of long-term, sensitive issues, making them distinct from trade topics. Including immigration in FTA discussions could complicate negotiations and delay progress, so separating the two allows each matter to be addressed in its appropriate context.

This is not to say mobility is completely off the table. Business mobility, which generally refers to temporary travel for professional purposes, is indeed part of the FTA discussions. This type of mobility is different from immigration, as it doesn’t involve permanent residency or long-term relocation. The focus here is on making it easier for business professionals to travel between the two countries for short-term stays related to work.

Challenges and Opportunities Ahead

Despite the progress made so far, several hurdles remain. Sensitive topics like labor standards, environmental policies, and market access in specific sectors require careful negotiation to ensure both sides reach an agreement they consider fair. Each country has its own set of priorities, and balancing these will be crucial for the success of the agreement.

The resumption of talks, however, shows a mutual commitment to moving forward. As Jonathan Reynolds pointed out, the UK hopes to solidify its trade relationship with India, seeing this as key to enhancing its position in global trade. Similarly, India views the FTA as a tool to expand its global economic footprint and secure benefits for its growing industries.

What’s Next?

As these negotiations continue, both nations seem determined to focus on areas where they can achieve tangible benefits. While broader immigration policies remain outside the scope of the talks, the inclusion of topics like business mobility and a potential social security agreement highlights the commitment to fostering closer ties. Initiatives like the UK-India Young Professionals Scheme provide an additional layer of cooperation, focusing on people-to-people connections.

In the broader context, the FTA represents a significant effort to deepen economic and business relations between India 🇮🇳 and the UK 🇬🇧. With the goal of creating a more streamlined and effective trade deal, both countries are prioritizing economic collaboration over unrelated subjects like immigration. As Piyush Goyal’s statement reveals, a clear boundary around these talks enables both sides to focus on mutual trade benefits.

For authoritative information on trade agreements and immigration policies, you can access the official UK Government website. Additionally, VisaVerge.com provides expert insights into global trade and mobility trends, adding valuable context to ongoing discussions.

Learn Today

Free Trade Agreement (FTA) → A pact between two or more countries to reduce barriers to trade, promoting economic cooperation and mutual benefits.
Bilateral Trade → Trade conducted between two nations, focusing on imports, exports, and economic exchanges to strengthen partnerships.
Intellectual Property Rights → Legal protections for creations of the mind, like inventions or trademarks, ensuring creators’ exclusive rights to their work.
Young Professionals Scheme (YPS) → A reciprocal initiative offering limited-time opportunities for young adults to work and study in participating countries.
Social Security Agreement → An arrangement preventing double contributions to social security systems, benefiting professionals working across different countries.

This Article in a Nutshell

India’s Commerce Minister Piyush Goyal firmly clarified that immigration is excluded from India-UK Free Trade Agreement (FTA) talks. This ensures focused discussions on trade priorities like goods, services, and investments. By separating immigration from the FTA, both nations aim to accelerate economic benefits while fostering mobility through independent initiatives like the Young Professionals Scheme.
— By VisaVerge.com