UK-India Free Trade Agreement: The UK and India have agreed a trade deal to make the goods cheaper and benefit the economies of both the country. Last year, the trade between the UK and India totalled 42 billion pounds and the UK-India trade deal is expected to increase the trade by an additional 25.5 billion. The agreement took three and a half year to be signed.
The UK is India's 16th largest trading partner and India is the UK's 11th largest partner. More than 90 per cent of the products have been impacted from the UK-India free trade agreement.
India has reduced taxes implied on UK on various products including:
- Electrical machinery
- Aerospace
- Cosmetics
- Scotch whisky, gin and soft drinks
- food including lamb, salmon, chocolate and biscuits
- Medical devices
- Higher-value cars
UK has lowered taxes implied on India on various products including:
- Jewellery and gems
- Food products including frozen prawns
- Clothing and Footwear
- Few cars
The FTA might help build strong relations between institutions of India and UK that can lead to increased exchange programmes, joint research initiatives and potentially more favourable visa arrangements for students.
Here, we speak to some experts who explain how India-UK FTA will benefit students:
Q. Will the UK-India Free Trade Agreement benefit Indian students?
Answer: "Yes, the UK-India Free Trade Agreement (FTA) holds the potential to benefit Indian students by fostering closer educational and professional ties between the two nations. While the FTA primarily addresses trade and economic cooperation, its provisions can indirectly open up new opportunities for Indian students in the UK," said Rahul Subramaniam, Co-founder, Athena Education.
Q. In what ways might the agreement create opportunities for Indian students?
Answer: Mr Subramaniam said that the UK-India FTA can create several opportunities for Indian students:
- Enhanced academic collaborations: The agreement could encourage partnerships between Indian and UK universities, leading to joint degree programs, research collaborations, and student exchange initiatives.
- Scholarships and financial aid: The FTA might pave the way for more scholarship opportunities and financial support for Indian students, making UK education more accessible.
- Streamlined visa process: Improved diplomatic relations could lead to more efficient visa processing and potentially more favorable post-study work visa policies for Indian students.
Q. Are student visa policies included in the FTA?
Answer: "No. The FTA does not encompass student visa regulations. Immigration policies remain under the purview of the UK's domestic legislation and are not directly influenced by the trade agreement," said Yatharth Gulati, co-founder, Rostrum Education.
Q. How might the agreement create opportunities for Indian students?
Answer: The education expert gave a detailed answer, explaining that the FTA opens doors to:
- Professional Mobility: Easier access to UK job markets, especially in sectors like IT, finance, and engineering;
- Academic Collaboration: Increased partnerships between UK and Indian institutions, leading to more exchange programs and joint research initiatives.
- Financial Relief: Exemptions from certain contributions reduce the financial burden on Indian students.
Q. Has the changing immigration policy made the UK less attractive to Indian students?
Answer: "Yes. The 2024 ban on dependents for most international students and the extension of the residency requirement for permanent settlement from 5 to 10 years have made the UK less appealing. These changes have led to a significant drop in Indian student visa applications," added Mr Gulati.
Q. So, can the FTA revive interest in studying there?
Answer: "Potentially, the UK-India FTA could reignite Indian students' interest in studying in the UK by addressing some of the concerns arising from recent immigration policy changes. By fostering stronger educational ties, recognising professional qualifications, and possibly influencing more student-friendly visa policies, the FTA can enhance the overall appeal of UK education.
"However, for the FTA to effectively revive interest, it must be complemented by tangible policy adjustments that directly benefit students, such as reducing financial barriers and providing clearer pathways to employment post-graduation. A holistic approach that combines the strategic objectives of the FTA with student-centric policies will be crucial in restoring the interest in the UK," said Mr Subramaniam.
