India-UK FTA to unlock new access for telecom and IT services

India and the United Kingdom have signed the Comprehensive Economic and Trade Agreement (CETA), a free trade agreement (FTA) that offers significant market access for Indian goods and services, including provisions that will directly benefit the technology and telecom industries. The deal was signed by India's Commerce and Industry Minister Piyush Goyal and his British counterpart, Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and his British counterpart, Keir Starmer.

The bilateral trade agreement provides zero-duty access for 99% of India’s exports to the UK by tariff lines, covering nearly 100% of the trade value, including labour-intensive sectors that advance the Make in India initiative and set the stage for bilateral trade to double by 2030.

It also provides India with greater market access in sectors critical to the country’s digital economy, including Information Technology (IT), IT-enabled Services (ITeS), financial and legal services, business consulting, education, telecom, architecture, engineering, and digital trade.

Service Market Access for Telecom and Digital Trade

For India’s telecom and digital infrastructure companies, the CETA opens new service market opportunities in the UK and creates regulatory certainty for cross-border digital trade. As part of its ambitious services package, the UK has committed to easing entry barriers for Indian professionals, including those in the telecom and IT sectors, under simplified visa and mobility schemes. This includes business visitors, independent professionals and intra-corporate transferees such as software engineers and network planners.

Indian telecom and IT service providers will also benefit from reduced compliance burdens under digital trade facilitation and customs simplification measures outlined in the agreement. CETA recognises digital systems and paperless trade, supporting faster customs clearance and improved supply chain integration. This is expected to lower transaction costs and support small and mid-sized tech enterprises seeking to operate in the UK.

Professional Mobility and Mutual Recognition

The agreement addresses professional qualification recognition and service licensing—factors that have previously hindered Indian telecom engineers and IT professionals from fully participating in foreign markets. CETA’s provisions for mutual recognition and mobility are likely to benefit a broad spectrum of skilled workers in areas such as spectrum planning, telecom consulting, software services, cybersecurity and digital architecture.

Indian micro, small and medium enterprises (MSMEs), which contribute significantly to software and telecom equipment exports, stand to gain from a dedicated SME chapter under the agreement. It proposes the establishment of a contact point to facilitate communication and address trade-related challenges, while easing documentation requirements through digital protocols.

CETA also incorporates the Double Contribution Convention (DCC), which exempts Indian professionals and their employers from paying social security contributions in the UK for up to three years. This is likely to increase take-home pay for Indian professionals deployed in the UK and reduce costs for Indian IT and telecom companies operating abroad.

Long-Term Benefits for India’s Digital Economy

The inclusion of modern services provisions is a departure from earlier trade templates, particularly in the context of developed market agreements. By allowing cross-border delivery of telecom and digital services and introducing technology-neutral commitments, the pact is expected to deepen India’s global digital integration.

Stating that the agreement was “a blueprint for shared prosperity,” Modi, delivering the joint press statement with the Prime Minister of the UK, highlighted its potential to benefit India’s youth, farmers, MSMEs and service professionals. He pointed to enhanced market access for Indian goods, including engineering products, while also noting that UK-made items, such as medical devices and aerospace components, would become more affordable for Indian industries.

Prime Minister Modi said the consensus on the DCC would reduce the cost of doing business and boost confidence in cross-border service engagements. He added that the pact would generate employment and increase bilateral investment, while contributing to global economic stability. He also announced the launch of Vision 2035—a roadmap for strengthening strategic cooperation in technology, defence, semiconductors, cybersecurity, and critical minerals—underlining India’s commitment to co-create future technologies with the UK.

Union Minister Goyal said the agreement would serve as a catalyst for inclusive growth, benefiting MSMEs, start-ups, and professionals. He emphasised that the CETA “marks a milestone in trade relations between two major economies… covering various sectors while enhancing mobility for Indian professionals by simplifying access for contractual service providers, business visitors and independent professionals.”

With the India-UK CETA aiming to double bilateral trade from USD 56 billion to over USD 100 billion by 2030, the telecom and IT sector can contribute significantly to this goal by leveraging service access, talent mobility, digital trade facilitation, and improved policy predictability embedded in the agreement.