Government defends National Insurance exemption in UK-India deal

The UK government has defended its decision to exempt Indian workers from National Insurance contributions under the new UK-India trade agreement. Officials argue that the exemption is a strategic move to strengthen economic ties with India and attract skilled workers to the UK. By eliminating these contributions for Indian nationals temporarily working in the UK, the government aims to facilitate smoother business operations and enhance bilateral trade. Opposition parties, however, have raised concerns about the potential impact on the domestic workforce. They claim that the exemption could make Indian workers more attractive to employers due to reduced hiring costs, potentially disadvantaging UK workers. Critics argue that this could lead to a competitive imbalance, urging the government to reassess the long-term implications on the local job market and ensure that domestic workers are not unfairly sidelined. In response, government officials have emphasized that the deal includes several safeguards designed to protect UK workers. They highlight that the agreement is part of a broader strategy to foster international partnerships and stimulate economic growth. The government insists that the benefits of increased trade and investment with India will ultimately create more job opportunities and bolster the UK economy, outweighing the concerns raised by opposition parties.

— Authored by Next24 Live