Will the Indo-UK treaty on migration be a game-changer for India?

January 15, 2022

India and Britain signed a historical agreement that will allow both Indian and British nationals to work in each other’s country for two years. It was signed by British Home secretary Priti Patel and Indian External Affairs Minister Jaishankar on 4 May 2021.

ALT - This new agreement is viewed as the first step of the revival of ties between India and England both trying to explore the untapped opportunity of manpower and market opportunity.

This was the end result of the never-ending working between British Prime Minister Boris Johnson and Indian Prime minister Narendra Modi who were working vigorously to improve bilateral relations to a new level. It is believed, the landmark agreement between the two nations will help Indian professionals and semiskilled workers a new opportunity to explore. It also helps to improve bilateral relations between the two nations which had many twists and turns in the past. This people-to-people exchange is hoping to make the fragile relation to be more strong.

Features of the agreement

Both Indians and British citizens can live and work for a period of two years provided they are in the age group of 18 to 30. This will allow thousands of Indian workforce to tap the huge job opportunities which were previously regulated by the British government through the Shortage Occupation List.

What is “Shortage Occupation List”?

Till now, the flow of workforce from India to Britain was restricted Britain followed a system of filtration called Shortage Occupation List. Through this, the government every year calculates the shortage of workforce depending on the skillset. Only those who possess the same skillset can at least try for a job there. Further, their selection is based on the marks they score in the IELTS exam. So only a few got selected to migrate to England till now. This agreement is expected to change this as they are proposing at least 3000 Indian nationals to enter England every year.

Benefits of working in Britain.

1. Britain follows the policy of hourly payment. The workers will get paid for the working hours he or she is working for a day. The minimum payment will be around 10 pounds which is equal to 1000 Indian rupees(depending on the money value of pounds to INR). This payment will be increased with a change in the skillset. For example, those who are Doctors, Nurses, Plumbers, or Heavy Duty drivers may get more hourly payment. If a worker works for 10 hours a day with a minimum pay slab can easily earn Rs.10000 in a day, the payment a person with the same skillset can earn in India for a whole month.

2. Major catch of working overseas is the conversion rate itself. Here, wages are paid as British Pounds. One pound is equal to 100Rs. If he or she is smart enough to spend less while working in Britain, he can return to India with a good bank balance amounting to lakhs. “While staying in England, we used to spend very little, only to basic needs of food and shelter and used to work almost 10 hours a day. When returned back; I had more than Thirty lakhs in my bank account. With this money, i started a travel agency in Chennai and is now running very smoothly. I don’t seek assistance from banks or other friends or relatives to start my business”; says Sekhar, a resident of Chennai who used to work as a cab driver in Plymouth, England.

India and UK relations.

Indian and British relations are growing very strongly for the past decade. Both economics are progressing particularly the progress made by India in IT sectors is worth mentioning. India has now a huge amount of talented and well-educated workforce which is very difficult to find in Europe. Also, around 20 % of the Indian population are ultra-rich and can afford to pay for any quantity of luxury abroad. The advancement made by Britain in Higher Education is attracting thousands of Indian students. The latest survey shows 53,000 Indian students visited Britain for higher studies last year, which is a whopping 42% increase compared to the previous year.

Along with this Indo-UK migration pact, India has also agreed to open up its huge market to British manufacturers. This will help Britain an opportunity to sell their manufacture. Now India has a strong middle class whose purchasing power is comparatively equal to any other western country. Britain is very ambitious on the Indian market particularly when the government of India has imposed multiple restrictions on Chinese products due to bilateral tensions. Britain wants to fill the blanks the Chinese had created.

Also, Britain is under pressure in European Market due to its exit from European Union and strained relations with other European Union due to its exit from the group. This had created a vacuum in their market and they are hoping to overcome it through its entry to Indian markets. Also, this historic agreement will reduce organized immigration crimes as this liberalized policy will stop unfair manipulation of Britain’s immigration laws and stop those who try to enter British territory through unfair means.

Limitations.

Only 3000 applicants are considered every year as per the present proposal.
The time period is only for two years and it cannot be extended. So this route will never lead to a final settlement.
It will stop overstays through illegal means. The report suggests many people are staying illegally even after their expiry of visa tenure. With this partnership, both countries can avoid this as it’s very transparent and easy to identify overstayers.

By Padmanabhan S 15 01 2022 Written for Con Inspira